• The operation will support the installation of 300,000 smart meters and the modernization of the Ventanas Garita Hydroelectric Plant in Alajuela.
 

WASHINGTON — IDB Invest has agreed to provide up to $100 million in financing to the Costa Rican Electricity Institute to modernize the country’s electricity infrastructure and improve energy efficiency.

The project includes the digitalization of the electricity grid through the installation of smart meters for 300,000 residential and commercial users. This modernization will enable real‑time remote monitoring, reduce losses, promote greater integration of renewable energy sources, and support a more flexible and efficient grid.

Costa Rica, a regional leader in renewable energy, is undergoing a process to modernize its electricity system to strengthen assets developed in previous decades and advance toward a smarter, more flexible, and more resilient grid. This investment is expected to bolster the competitiveness of productive sectors and promote more resilient economic growth, benefiting households and businesses throughout the country.

The financing package includes a loan of up to $79 million from IDB Invest and $21 million from the Climate Investment Funds (CIF) to support initiatives that promote resilient and sustainable infrastructure. The operation is complemented by a $200 million sovereign loan from the IDB, demonstrating the IDB Group’s ability to mobilize resources through public‑private schemes and accelerate strategic investments in the energy sector.

The program from IDB Invest and CIF includes advisory services for the Costa Rican Electricity Institute to strengthen its engagement strategy with vulnerable communities and female‑headed households, including the adoption of energy‑efficiency practices. It also supports the development of a battery‑storage strategy and the enhancement of environmental and social policies.

About the IDB Group
 

The Inter-American Development Bank Group (IDB Group) is the leading source of financing and expertise for improving lives in Latin America and the Caribbean. It comprises the IDB, which works with the region’s public sector and enables the private sector; IDB Invest, which directly supports private companies and projects; and IDB Lab, which drives innovation for inclusion.

About the Costa Rican Electricity Institute

The Costa Rican Electricity Institute (ICE) is an autonomous institution owned by the State of Costa Rica, created by Decree Law No. 449 on April 8, 1949. Its mission is to promote national development through sustainable, universal, and affordable electricity service, based on protecting and restoring the environment, as well as ensuring equitable access to telecommunications technologies for all sectors of the population.

About the Climate Investment Funds

The Climate Investment Funds (CIF), with $13 billion in resources, invests in developing countries to drive sustainable and resilient growth and foster shared prosperity through climate finance. Since 2008, the CIF has worked with governments and multilateral development banks to accelerate investments that transform energy systems, strengthen resilience, promote nature‑based solutions, and modernize industry. Through grants and concessional loans, the CIF enables more than 80 countries to mobilize large‑scale capital, with an expected average of more than $10 of co‑financing for every dollar invested. In 2025, the CIF became the first multilateral climate fund to raise new private‑sector financing in capital markets through the CIF Capital Markets Mechanism (CCMM).