New ICE Methodology Doubles Purchase Prices for Distributed Generation Surplus in Costa Rica

Executive summary

Costa Rica’s Instituto Costarricense de Electricidad (ICE) has implemented a new methodology for purchasing surplus electricity from distributed generators. Average purchase prices rise by 111 percent and apply only to new projects. Contracts start at eight years with two optional one-year renewals. ICE will pay using two product blocks, Variable and Firm, and will price across four categories that reflect technology, geography and delivery window. ICE currently counts 1,443 distributed-generation clients with 34 MW of installed capacity.

What ICE has announced

• Scope: Surplus purchase under the neta completa scheme for new distributed generators in the ICE concession area.
• Price impact: Average +111 percent versus prior purchase levels.
• Contracting: 8-year base term, extendable 1 year + 1 year.
• Two product blocks:
  • Variable: Predominantly solar without storage. Price depends on the project’s location.
  • Firm: Technologies like solar plus batteries or biomass that qualify for higher, location-agnostic prices when technical requirements are met.
• Four purchase categories:
  • Category I: Price for plants with a capacity factor ≥ 60 percent.
  • Category II: Same ≥ 60 percent threshold, with deliveries prioritized 3 p.m. to 8 p.m.
  • Category III: Variable resources priced by ICE zone.
  • Category IV: Variable resources priced by ICE zone.

ICE’s president, Marco Acuña, underscored support for distributed generators and called for responsible, sustainable use of national renewable resources under ICE’s technical parameters.

For reference, ICE’s distributed-generation pages and prior tariff documents provide additional institutional context on purchase mechanisms and interconnection.

Local outlets have also reported the 111 percent average increase for new projects.

Why this matters for investors and operators

Stronger price signals for quality and reliability. The Firm block explicitly rewards storage-integrated solar and biomass that meet technical standards. This nudges portfolios toward dispatchable or time-aligned profiles that support evening peaks.

Time-of-day and geography now shape returns. With categories keyed to capacity factor, delivery window and ICE zone, siting, design and operational strategy become decisive to PPA-style outcomes for surplus sales.

New-build focus. The methodology applies only to new generators, which creates a clear line between legacy assets and projects entering under the updated economics.

Contracting certainty. An 8-year initial term with potential annual extensions can underpin financing structures for SMEs and commercial-industrial hosts deploying solar plus storage.

Who stands to benefit

• Commercial and industrial consumers planning behind-the-meter solar plus storage that can deliver evening energy and meet ICE’s firm criteria.
• Biomass developers able to demonstrate firm output within ICE’s technical envelope.
• Property owners in ICE’s concession area whose sites align with favorable geographic pricing for Variable resources.

Strategic considerations before you move

1. Confirm your product block and category at design stage. Engineering choices determine whether your project qualifies as Variable or Firm, and which category it lands in. This flows directly into your modeled revenue.
2. Model evening delivery capability. Category II’s 3 p.m. to 8 p.m. window places a premium on storage sizing, cycling strategy and warranty-aligned dispatch.
3. Underwrite geography. Variable-block projects must price site selection with ICE’s zonal differentials in mind.
4. Align interconnection and compliance early. ICE’s distributed-generation pages and technical norms remain the anchor for feasibility, queueing and commissioning.
5. Futureproof for policy evolution. Monitor ICE publications and related sector moves as Costa Rica accelerates solar, storage and grid upgrades during 2025.

How Bedrock helps

Bedrock’s Energy & Sustainability practice supports distributed-generation sponsors, C&I consumers and impact-oriented investors across the full lifecycle:

• Project structuring for solar, storage and biomass within Costa Rica’s regulatory context.
• ESG-aligned compliance and risk design that strengthens bankability and reputation.
• Cross-functional coordination among technical, permitting, contracting and financing stakeholders.

Explore our approach at bedrock-consultants.com/energy.