Costa Rica Sells Nicaragua Electricity
Despite strained diplomatic relations between the two countries, Costa Rica is selling electrical energy to its neighbour to the north, Nicaragua, that has been facing an energy crisis for the last several months.

Teófilo de la Torre, general manager at the Instituto Costarricense de Electricidad (ICE) - the state monopoly on electricity and telecommunications - said that they sel, with frequency, small amounts of energy to Nicaragua.

Just last Friday, Costa Rica sent Nicaragua 5 Megwatts of power, according to the ICE manager. In comparison, Guatemala sold Nicaragua 30 Megawatts.

The energy sold to Nicaragua is produced largely by the thermal generation plants and hydro generation plants from the dams that is barely supplying enough energy for local consumption. The sale generates between us$100 and us$130 dollars per megawatt hour.

The ICE manager explained that energy produced by thermal plants using either diesel or bunker fuel is more expensive.

ICE currently runs two thermal plants using bunker fuel that produces 24.3 megawatts of power, which it leases from the private company Grupo Pujol which is part of the state institution's contingency plan.

La Torre said that ICE has the right to sell electrical energy to other Central American nations if there is the demand and/or has the energy available, as well it can purchase energy from other countries if the cost is lower than the production.

At times, ICE has been buying electrical energy from Panama at far lower cost that its own production. Panama has been selling electrical energy at around us$80 per megawatt hour.

Nicaragua charged in August that Costa Rica was buying up the cheaper Panamanian energy, denying that country the availability of cheap energy as it experiences one of the worst energy crisis. In Nicaragua, every day electrical energy is cut for up to 8 hours. Nicaragua's energy needs are in the hands of the Spanish group Unión Fenosa.

ICE says it cannot increase production just to sell energy to Nicaragua. Another problem is supplying the northern neighbour with energy is the replacement of transmission cable on the Barranca and Cañas lines, which impedes ICE ability to export energy.

Costa Rica and Nicaragua will soon be facing each other in international court on the dispute over the navigational rights of the river San Juan. The river is clearly in Nicaraguan territory, however, Costa Rica charges that is being impeded from navigating the river under a century old agreement. The dispute has been ongoing for years.