Óscar Arias Sánchez.
Free translation by Rafael Vilagut. The rise of energy populism in Costa Rica is growing rapidly from Dr. Oscar Arias Sánchez to Dr. Rodrigo Chaves Robles. LaRepublica.net October 17, 2022 "Energy populism and the failure of the national energy policy" by Roberto Dobles.
Energy has been playing an increasingly important role in the speeches and decisions of (Costa Rican) politicians; therefore, the country's energy decisions have been (negatively) influenced by political factors (rather than technical factors).
As part of the political discussion, energy populism has also emerged, leading to various populist energy policy proposals that, by action and inaction, have harmed national energy development.
Populist policies have not fully considered several key factors, such as scientific, technical, economic, financial, environmental, and social factors, which is why very significant distortions have been created between the current energy situation and the situation that the country should have. in order to promote economic development and social progress.
These policies have also created significant deficiencies and a lack of comprehensiveness in the evolution of the national energy supply.
Additionally, many of the legal initiatives that have taken place, and continue to take place in an isolated and partial manner, have created a disjointed legal framework for the energy sector, which makes matters worse for the country's situation.
As part of the growing enthronement of populism in national energy development, established energy sources have been encouraged to exist without sufficient technical and economic support, other energy sources have been demonized, hindered, and blocked, which has led the country to continuous impoverishment and, consequently, to cover the growing lack of country energy with permanent increases in oil imports and a growing and dangerous dependence on foreign oil.
Unfortunately, populism has been having increasing interference in the country's energy policy and national energy plans.
The failed national energy policy, largely caused by erroneous political decisions and not rooted in reality, has great negative implications for the national economy and society as a whole.
Much of what has been pointed out in energy policy and national energy plans has not only had any relevant impact on reality but has also created a continuous deterioration.
In general, energy populism is supported by various disproportionate and unrealistic energy promises that appeal to people's feelings.
The promises and populist energy plans are not well fulfilled because they are not rooted in reality and are not well founded on scientific, technical, economic, financial, social, and environmental criteria and studies. They also do not have the enforcement capabilities required to achieve what they say they want to achieve.
Energy populism has been influencing directly, indirectly, and progressively to impose an energy policy on the country that is uprooted from reality and based on ideological dogmas and biases.
Everything has been having a determining impact on the national energy policy, which explicitly and implicitly establishes which energy sources will be promoted, which will be hindered, and which will be blocked in the country.
Populist policies seek to impose a kind of “energy dictatorship” so that the State allows only those energy developments and sectoral and institutional structures that these policies envision.
All of the above ends up making other developments of the national energy potential that the country requires to strengthen economic growth and social progress impossible.
With this way of acting, by action and inaction, energy populism has strongly contributed to the deterioration of the energy supply and the energy impoverishment of the country which, as I pointed out, has caused a disproportionate increase in refined oil imports.
Populist policies have deteriorated national energy competitiveness and our country's capacities to achieve larger economic and social development, which is contrary to what the countries with which we compete in international trade are doing and to attract the necessary foreign investment.
Another aspect of the harmful effects of energy populism is that the energy monopolies and oligopolies present in the country tend to concentrate on the current energy status quo, which is dominated by traditional energies. Consequently, competition with new energy sources that are emerging as a result of continuous technological advances is hampered.
The reality shown by official data shows a significant deterioration and progressive decline in the national energy supply.
The official data shows the harsh reality of the results of the failure of the national energy policy and the sustained decline of many of the essential factors of the national energy supply, such as the following:
• A growing and continuous shortage of national energy sources have been created contrary to what is preached. It has been imposed on us to cover this lack of energy with growing refined oil imports.
This situation is the cause of the serious energy problems and of the continuous deterioration, as follows.
• A continued increase in the national dependence on expensive and volatile imported refined petroleum products, which currently represent 64.3% of the national energy consumption.
• Increased substitution and displacement of domestic renewable sources by imported refined petroleum products is populism.
Only in the period 2015-2019, the energy supply with national renewable sources fell by 4%. The energy supply with imported refined oil products increased by 3%.
And worst of all, according to projections by the state-owned company RECOPE, the national demand for imported refined petroleum products will increase by 37.5% by 2039. According to projections by the Costa Rican Institute of Electricity ICE , the demand for electricity, with national renewable sources, will increase by 31.1%.
In this way, the already very high dependence on imported refined oil products for 64.3% of national energy consumption would continue to increase strongly in the future to the detriment of national energy sources (friendly to the environment).
• Permanent energy impoverishment of the country has led to a sustained increase in oil imports even though nature endowed the national territory with a highly diversified (green) energy potential.
• No energy diversification. 80% of the energy supply has been concentrated in only two energy sources, which are additionally the most vulnerable sources to external events beyond our control. These are imported refined oil products with 64.3% and national hydroelectricity with 15.4%.
Imported refined oil products are highly vulnerable (in terms of costs, supply, etc.) to the swings and unpredictable crises of the international energy market.
Hydroelectricity is the most vulnerable renewable energy source (in terms of costs, supply, etc.) to the evolution of climate change (more intense dry and cold seasons, stronger droughts, etc.) that is creating enormous damage throughout the world.
Being located in the tropics (and close to the Caribbean Sea), Costa Rica is one of the regions of the planet most impacted and most vulnerable to climate change.
This energy vulnerability increases the vulnerability of the national economy.
• Decrease in energy security by continuously increasing the enormous concentration of the national energy supply in only those two sources that are the most vulnerable to external events beyond our control.
• The loss of energy competitiveness weakens the economic and social development of the country.
• The lack of energy diversification and concentration of national energy development in traditional energies limits the transition of the energy matrix.
This occurs largely because energy policy does not encourage healthy competition between different energy sources, both new and traditional.
This is one of the reasons why the country not only does not advance in the energy transition but rather goes backward, as the data shows: the growing dependence on imported oil, the continuous substitution of national renewable sources for refined products from imported oil, etc.
While all this is happening in Costa Rica, growing competition between different energy sources is taking place in the world as a mechanism to promote the diversification and transition of the energy matrix and to induce abundant and diversified energy supplies.
According to international studies, the global energy matrix forecast for 2040 will be the most diversified ever seen in history.
Costa Rica will not be in a good position in the future because data and trends show that, if there is no radical change in energy policy, the energy situation in Costa Rica will continue to deteriorate. Without an energy transition (and rather going backward) and with a high concentration on traditional energies that are most vulnerable to external events beyond our control, such as imported oil in the form of refined products and hydroelectricity (the country loses competitiveness).
• There is a direct and indirect blockade of the three energy sources that are currently leading the energy transition in the world: solar energy, wind energy, and natural gas.
Energy has been playing an increasingly important role in the speeches and decisions of (Costa Rican) politicians; therefore, the country's energy decisions have been (negatively) influenced by political factors (rather than technical factors).
As part of the political discussion, energy populism has also emerged, leading to various populist energy policy proposals that, by action and inaction, have harmed national energy development.
Populist policies have not fully considered several key factors, such as scientific, technical, economic, financial, environmental, and social factors, which is why very significant distortions have been created between the current energy situation and the situation that the country should have. in order to promote economic development and social progress.
These policies have also created significant deficiencies and a lack of comprehensiveness in the evolution of the national energy supply.
Additionally, many of the legal initiatives that have taken place, and continue to take place in an isolated and partial manner, have created a disjointed legal framework for the energy sector, which makes matters worse for the country's situation.
As part of the growing enthronement of populism in national energy development, established energy sources have been encouraged to exist without sufficient technical and economic support, other energy sources have been demonized, hindered, and blocked, which has led the country to continuous impoverishment and, consequently, to cover the growing lack of country energy with permanent increases in oil imports and a growing and dangerous dependence on foreign oil.
Unfortunately, populism has been having increasing interference in the country's energy policy and national energy plans.
The failed national energy policy, largely caused by erroneous political decisions and not rooted in reality, has great negative implications for the national economy and society as a whole.
Much of what has been pointed out in energy policy and national energy plans has not only had any relevant impact on reality but has also created a continuous deterioration.
In general, energy populism is supported by various disproportionate and unrealistic energy promises that appeal to people's feelings.
The promises and populist energy plans are not well fulfilled because they are not rooted in reality and are not well founded on scientific, technical, economic, financial, social, and environmental criteria and studies. They also do not have the enforcement capabilities required to achieve what they say they want to achieve.
Energy populism has been influencing directly, indirectly, and progressively to impose an energy policy on the country that is uprooted from reality and based on ideological dogmas and biases.
Everything has been having a determining impact on the national energy policy, which explicitly and implicitly establishes which energy sources will be promoted, which will be hindered, and which will be blocked in the country.
Populist policies seek to impose a kind of “energy dictatorship” so that the State allows only those energy developments and sectoral and institutional structures that these policies envision.
All of the above ends up making other developments of the national energy potential that the country requires to strengthen economic growth and social progress impossible.
With this way of acting, by action and inaction, energy populism has strongly contributed to the deterioration of the energy supply and the energy impoverishment of the country which, as I pointed out, has caused a disproportionate increase in refined oil imports.
Populist policies have deteriorated national energy competitiveness and our country's capacities to achieve larger economic and social development, which is contrary to what the countries with which we compete in international trade are doing and to attract the necessary foreign investment.
Another aspect of the harmful effects of energy populism is that the energy monopolies and oligopolies present in the country tend to concentrate on the current energy status quo, which is dominated by traditional energies. Consequently, competition with new energy sources that are emerging as a result of continuous technological advances is hampered.
The reality shown by official data shows a significant deterioration and progressive decline in the national energy supply.
The official data shows the harsh reality of the results of the failure of the national energy policy and the sustained decline of many of the essential factors of the national energy supply, such as the following:
• A growing and continuous shortage of national energy sources have been created contrary to what is preached. It has been imposed on us to cover this lack of energy with growing refined oil imports.
This situation is the cause of the serious energy problems and of the continuous deterioration, as follows.
• A continued increase in the national dependence on expensive and volatile imported refined petroleum products, which currently represent 64.3% of the national energy consumption.
• Increased substitution and displacement of domestic renewable sources by imported refined petroleum products is populism.
Only in the period 2015-2019, the energy supply with national renewable sources fell by 4%. The energy supply with imported refined oil products increased by 3%.
And worst of all, according to projections by the state-owned company RECOPE, the national demand for imported refined petroleum products will increase by 37.5% by 2039. According to projections by the Costa Rican Institute of Electricity ICE , the demand for electricity, with national renewable sources, will increase by 31.1%.
In this way, the already very high dependence on imported refined oil products for 64.3% of national energy consumption would continue to increase strongly in the future to the detriment of national energy sources (friendly to the environment).
• Permanent energy impoverishment of the country has led to a sustained increase in oil imports even though nature endowed the national territory with a highly diversified (green) energy potential.
• No energy diversification. 80% of the energy supply has been concentrated in only two energy sources, which are additionally the most vulnerable sources to external events beyond our control. These are imported refined oil products with 64.3% and national hydroelectricity with 15.4%.
Imported refined oil products are highly vulnerable (in terms of costs, supply, etc.) to the swings and unpredictable crises of the international energy market.
Hydroelectricity is the most vulnerable renewable energy source (in terms of costs, supply, etc.) to the evolution of climate change (more intense dry and cold seasons, stronger droughts, etc.) that is creating enormous damage throughout the world.
Being located in the tropics (and close to the Caribbean Sea), Costa Rica is one of the regions of the planet most impacted and most vulnerable to climate change.
This energy vulnerability increases the vulnerability of the national economy.
• Decrease in energy security by continuously increasing the enormous concentration of the national energy supply in only those two sources that are the most vulnerable to external events beyond our control.
• The loss of energy competitiveness weakens the economic and social development of the country.
• The lack of energy diversification and concentration of national energy development in traditional energies limits the transition of the energy matrix.
This occurs largely because energy policy does not encourage healthy competition between different energy sources, both new and traditional.
This is one of the reasons why the country not only does not advance in the energy transition but rather goes backward, as the data shows: the growing dependence on imported oil, the continuous substitution of national renewable sources for refined products from imported oil, etc.
While all this is happening in Costa Rica, growing competition between different energy sources is taking place in the world as a mechanism to promote the diversification and transition of the energy matrix and to induce abundant and diversified energy supplies.
According to international studies, the global energy matrix forecast for 2040 will be the most diversified ever seen in history.
Costa Rica will not be in a good position in the future because data and trends show that, if there is no radical change in energy policy, the energy situation in Costa Rica will continue to deteriorate. Without an energy transition (and rather going backward) and with a high concentration on traditional energies that are most vulnerable to external events beyond our control, such as imported oil in the form of refined products and hydroelectricity (the country loses competitiveness).
• There is a direct and indirect blockade of the three energy sources that are currently leading the energy transition in the world: solar energy, wind energy, and natural gas.
• Contrary to what happens internationally (OECD), the exploitation of national energy sources is not seen by the government as a major productive sector of the national economy that makes available the prominent and varied energy wealth to generate economic growth and social welfare.
• There is a continuous increase in emissions to the environment from the energy sector (including greenhouse gases that affect climate change).
Among other things, this increase in gas emissions is causing a great national setback and non-compliance with the international commitments (signed by Costa Rica) to reduce gas emissions, including the Paris Agreement.
The State of the Nation Report has also noted the following:
- "The energy matrix... leads to growing gas emissions and high costs in terms of air quality, carbon footprint, and oil bill, among others."
- "Energy, a key element for development, maintained in 2019 the long-term trend of growing dependence on (imported) fossil fuels."
• Low economic and social performance of the energy sector in Costa Rica compared to other (OECD) countries.
• Evolution of the national energy supply with unsustainable patterns from an economic, social, and environmental perspective.
All of the above clearly shows that, despite the (rise of) populist discourse, Costa Rica not only continues without any energy transition but rather is on a path of energy retrogradation, that is, a transition in reverse.
In conclusion, the national energy transition will not take place. The national energy supply will continue to regress and be economically vulnerable if the same policies and strategies are continued that have already shown that they have no effect in the real world and that have rather come hindering the country's potential for economic and social development.
Since energy is the engine of an economy, the failure of the national energy policy has very serious consequences because it limits and hinders efforts to improve economic and social development, quality of life, and human development.
El populismo energético y el fracaso de la política energética nacional por Dr. Roberto Dobles, Periódico La República, 17 Octubre 2022, link, https://www.larepublica.net/noticia/el-populismo-energetico-y-el-fracaso-de-la-politica-energetica-nacional
Columnist Dr. Roberto Dobles has extensive knowledge in various sectors, including, among others, industry, services, energy, telecommunications, technology, environment, green economy, water, sustainable development, and climate change. Interdisciplinary and intersectoral knowledge is essential for better decision-making through the integration of various fields. Minister of Environment, Energy, and Telecommunications of Costa Rica (this ministry is in charge of six key areas: environment, energy, mining, water, telecommunications, and climate change). Executive President of RECOPE and ICE Minister of Science and Technology of the Government of Costa Rica. President of the Global Environmental Forum at the Ministerial Level of the United Nations (UN). President of the Governing Council of the United Nations Environment Program (UNEP). Vice President of the Third General Assembly of the “Global Environment Facility” (GEF). Founder of the UN Carbon Neutral Network (“Climate Neutral Network”).
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