Cable Viewer

Currently released so far... 12433 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AORC AF AR ASEC AEMR AMGT AE ABLD AL AJ AU AO AFIN ASUP AUC APECO AM AG APER AGMT AMED ADCO AS AID AND AMBASSADOR ARM ABUD AODE AMG ASCH ARF ASEAN ADPM ACABQ AFFAIRS ATRN ASIG AA AC ACOA ANET APEC AQ AY ASEX ATFN AFU AER ALOW AZ APCS AVERY ASECKFRDCVISKIRFPHUMSMIGEG AN AGRICULTURE AMCHAMS AINF AGAO AIT AORL ACS AFSI AFSN ACBAQ AFGHANISTAN ADANA AX AECL AADP AMEX ACAO AORG ADM AGR AROC
BL BR BO BE BK BY BA BILAT BU BM BEXP BF BTIO BC BBSR BMGT BTIU BG BD BWC BH BIDEN BB BT BRUSSELS BP BX BN
CD CH CM CU CBW CS CVIS CF CIA CLINTON CASC CE CR CG CO CJAN CY CMGT CA CI CN CPAS CAN CDG CW CONDOLEEZZA CT CIC CIDA CSW CACM CB CODEL COUNTERTERRORISM CTR COUNTER CWC CONS CITEL CV CFED CBSA CITT CDC COM COE COUNTRY CLEARANCE CDB CKGR CACS CARSON CROS CAPC CHR CL CICTE CIS CNARC CJUS CEUDA CLMT CAC COPUOS CBC CBE CARICOM CTM CVR
DR DPRK DEPT DA DJ DEA DTRA DOMESTIC DHS DAO DCM DO DE DEAX DOE DK DS DISENGAGEMENT DOD DEFENSE
EAGR EAIR ECON ECPS ETRD EUN ENRG EINV EMIN EU EFIN EREL EG EPET ENGY ETTC EIND ECIN EAID ELAB EC EZ ENVR ELTN ELECTIONS ER EINT ES EWWT ENIV EAP EFIS ERD ENERG EAIDS ECUN EI EINVEFIN EN EUC EINVETC ENGR ET ETRDEINVECINPGOVCS ECONOMY EUMEM ESA EXTERNAL EINVECONSENVCSJA EINN EEPET ENVI EFTA ESENV ECINECONCS EPA ECONOMIC ETRA EIAR EUREM ETRC EXBS ELN ECA EK ECONEFIN ETC ETRDECONWTOCS EUNCH ECIP EINDETRD EUR ENNP EXIM ERNG EFINECONCS ETRDEINVTINTCS ETRO EDU ETRN EFIM EAIG EURN ECONCS ECONOMICS
FR FREEDOM FTA FI FOR FJ FTAA FARC FINANCE FDA FAC FBI FAO FM FMLN FO FISO FOREIGN FOI FAS FINR
GM GE GG GZ GOV GT GR GAERC GV GH GA GY GOI GTIP GCC GERARD GAZA GTMO GL GLOBAL GANGS GF
HO HA HILLARY HUMAN HR HURI HEBRON HU HK HUMOR HSTC HI HYMPSK
IS ICRC IN IR IZ IT INRB IAEA ICAO ITALY ITALIAN IRAQI IC IL ID IV IMO INMARSAT IQ IRAJ IO ICTY IPR IWC ILC INTELSAT IBRD IMF IRC IRS ILO ITU IDA IAHRC ICJ ITRA ISRAELI ITF IACI IDP ICTR IIP IA IF IZPREL IGAD INTERPOL INTERNAL ISRAEL ISLAMISTS INDO ITPHUM ITPGOV IBET IEFIN INR INRA INRO IEA
JA JAMES JO JM JOSEPH JP JOHNNIE JOHN JUS
KSCA KUNR KHLS KAWK KISL KPAO KSPR KGHG KPKO KDEM KNNP KN KS KPAL KACT KCRM KDRG KJUS KGIC KRAD KU KTFN KV KMDR KWBG KSUM KSEP KCOR KHIV KG KGCC KTIP KIRF KE KIPR KMCA KCIP KTIA KAWC KBCT KVPR KPLS KREL KCFE KOMC KFRD KWMN KTDB KPRP KMFO KZ KVIR KOCI KMPI KFLU KSTH KCRS KTBT KIRC KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KFLO KSTC KFSC KFTFN KIDE KOLY KMRS KICA KCGC KSAF KRVC KVRP KCOM KAID KTEX KICC KNSD KBIO KOMS KGIT KHDP KNEI KTRD KWNM KRIM KSEO KR KWAC KMIG KIFR KBTR KTER KDDG KPRV KPAK KO KRFD KHUM KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KREC KCFC KLIG KWMNCS KSEC KPIN KPOA KWWMN KX KCMR KPWR KCHG KRGY KSCI KNAR KFIN KBTS KPAONZ KNUC KNPP KDEMAF KNUP KNNPMNUC KERG KCRCM KWMM KPAI KHSA KTLA KRCM KCSY KSAC KID KOM KMOC KESS KDEV KJUST
LE LY LI LH LAB LU LG LOG LTTE LA LO LABOR LT
MARR MOPS MX MASS MNUC MCAP MO MU ML MA MTCRE MY MOPPS MASC MIL MR MTS MLS MILI MK MEPP MD MAR MP MTRE MCC MZ MDC MRCRE MV MI MEPN MAPP MEETINGS MAS MTCR MG MEPI MT MEDIA MASSMNUC MQADHAFI MPOS MAPS MARAD MC MIK MUCN MILITARY MERCOSUR MW
NZ NL NATO NO NI NU NATIONAL NG NP NPT NPG NS NA NSG NAFTA NC NH NE NSF NSSP NDP NORAD NK NEW NR NASA NT NIPP NAR NGO NW NV NATOPREL NPA NRR NSC NSFO NZUS
OTRA OVIP OEXC OIIP OSAC OPRC OVP OFFICIALS OAS OREP OPIC OSCE OECD OSCI OFDP OPDC OIC OFDA ODIP OBSP ON OCII OES OPCW OPAD OIE OHUM OCS OMIG OTR
PGOV PREL PARM PHUM PREF PTER PINS PK PINR PROP PBTS PKFK PL PE PSOE PEPR PM PAK POLITICS POL PHSA PPA PA PBIO PINT PF PFOR PHALANAGE PARTY PNAT POLINT PRAM PMAR PG PAO PROG PRELP PCUL PSEPC PGIV PO PREFA PALESTINIAN PGOVLO PGOVE PLN PINF PAS PDEM PHUMPGOV PNG PHUH PMIL POGOV PHUMPREL PHUS PRL PGOC PNR PGGV PROV PHUMBA PEL PECON POV PSA PREO PAHO PP PSI PINL PU PARMS PRGOV PAIGH POLITICAL PARTIES POSTS PTBS PORG PUNE POLICY PDOV PCI PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PS PY PTERE PGOF
QA
RS RO RU RW REGION RIGHTS RSP ROBERT RP RICE REACTION RCMP RFE RM RIGHTSPOLMIL RF ROOD RUPREL RSO RELATIONS REPORT
SENV SZ SOCI SNAR SP SCUL SU SY SA SO SF SMIG SW STEINBERG SG SIPRS SR SI SPCE SN SYRIA SL SC SHI SNARIZ SIPDIS SPCVIS SH SOFA SK ST SEVN SYR SHUM SAN SNARCS SAARC SARS SEN SANC SCRS SENVKGHG SNARN SWE SSA
TPHY TW TS TU TX TRGY TIP TSPA TSPL TBIO TNGD TI TFIN TC TRSY TZ TINT TT TF TN TERRORISM TP TURKEY TD TH TBID TL TV TAGS TK TR THPY TO
UNGA UNSC UNCHR UK US UP UNEP UNMIK UN UAE UZ UG UNESCO UNHRC USTR UNHCR UY USOAS UNDC UNCHC UNO UNFICYP USEU UNDP UNODC UNCND UNAUS UNCHS UV USUN USNC UNIDROIT UNCSD UNICEF UE UNC USPS UNDESCO UNPUOS USAID UNVIE
VE VT VZ VTPREL VM VN VTIZ VAT VC VTEG VI
WMO WTRQ WB WI WWARD WA WBG WITH WHA WTO WMD WTRO WIPO WHO WS WHTI WEU WZ WFP
XB XG XT XH XA XM XF XE XR XK XL XW XY XS XX XV XD XTAG XQ XU XZ XC XI
YM YE YI YMCS
ZI ZP ZR ZO ZF ZANU ZOELLICK ZU ZL ZEALAND ZN ZB ZA ZK ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 07SANJOSE873, PARADISE BY CANDLELIGHT: COSTA RICAN POWER FAILURE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07SANJOSE873.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07SANJOSE873 | 2007-05-09 22:10 | 2011-03-21 16:04 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

`

    VZCZCXYZ0008
    RR RUEHWEB

    DE RUEHSJ #0873/01 1292216
    ZNR UUUUU ZZH
    R 092216Z MAY 07
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 7939
    INFO RUEHMU/AMEMBASSY MANAGUA 4906
    RUEHZP/AMEMBASSY PANAMA 3601
    RUEHGT/AMEMBASSY GUATEMALA 3782

` `

    UNCLAS SAN JOSE 000873

    SIPDIS

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: EINV ECON SENV ENRG CS
    SUBJECT: PARADISE BY CANDLELIGHT: COSTA RICAN POWER FAILURE

    REF: SAN JOSE 00653

    ¶1. (U) This is another installment in our ongoing series explaining
    why Costa Rica is not quite paradise.  These cables seek to paint a
    realistic picture of the challenges faced by Costa Rica.  Travel
    brochures don't tell the entire story.

    ¶2. (U) SUMMARY. Costa Rica's electrical generation system collapsed
    on April 19 as the country suffered its first nation-wide blackout
    in six years.  Parts of the nation were without power for the next
    24-48 hours.  Rolling blackouts (except on weekends and holidays)
    began on April 26.  The collapse resulted from the combination of a
    severe dry season as well as the failure of the National Electrical
    Institute (ICE), Costa Rica's state power and telecom monopoly, to
    both adequately maintain its own equipment and to invest in
    increased capacity.  ICE initially stated that power shortages were
    likely to continue unless the state regulator allowed a 23 percent
    rate hike.  Meanwhile, businesses in Costa Rica suffered.  While
    President Arias announced the end to rolling-blackouts on May 4,
    experts from General Electric tell us there are no quick or easy
    solutions to Costa Rica's long-term problem of a lack of spare
    capacity.  END SUMMARY.

    It All Comes Crashing Down
    --------------------------

    ¶3. (U) On Thursday April 19, Costa Rica's electrical power system
    failed just after 8:00 PM local time, triggering a country-wide
    blackout that lasted for one and a half hours.  Parts of the country
    were without power for the following 24-48 hours.  According to ICE,
    the state-owned power and telecom monopoly, the collapse was due to
    the combination of a "rainy-season" with very little rain that has
    left the country's hydroelectric resources at 25 percent of normal
    capacity and the breakdown of three turbines and two major
    transformers over the course of two weeks.  This, coupled with an
    ever-increasing demand led to a situation where demand outstripped
    capacity, leading to a system-wide shutdown of the grid.

    Can't Meet Current Demand
    -------------------------

    ¶4. (U) Over the last five years, ICE has not adequately invested in
    its electrical generation capacity, as projects in the works for
    years continued to face delays.  Environmental groups have derailed
    or postponed plans for two major hydroelectric projects planned in
    environmentally sensitive areas.  Major thermal (fuel-burning)
    projects have also faced delays.  For the last fours years ICE has
    planned on constructing a 120-megawatt plant in Garabito.  According
    to the original timeline, the plant should have already been in
    operation.  Construction has not yet begun due to contracting
    disputes (not unusual in Costa Rica).

    ¶5. (U) Costa Rica has long prided itself as a "green" country that
    makes extensive use of non-thermal sources of electrical power and
    has a history of using renewable sources to provide the vast
    majority of its power.  While that is still true, over the last two
    years there has been a dramatic increase in the use of thermal
    generators as well as purchases of electricity from neighboring
    countries.  Previous to 2006, approximately 6 percent of the
    electricity consumed in Costa Rica came from thermal generators.  In
    2006 this figure had risen to 20 percent as Costa Rica purchased
    more of its power from suppliers in Panama.

    ¶6. (U) This shift toward the increasing use of thermally-generated
    electricity came as the price of oil also rose, dramatically
    increasing the cost to ICE of generating electricity from thermal
    sources.  It costs ICE an average $0.03 per kilowatt-hour to produce
    electricity in hydroelectric plants, $0.14 from their thermal
    plants, and between $0.08-0.13 per kilowatt-hour to import
    thermal-generated electricity (not including transportation costs)
    from neighboring countries.  Due to its own power shortages, Panama
    is no longer exporting electricity to Costa Rica.

    ¶7. (U) In the first three months of 2007, ICE has already exhausted
    86 percent of the USD 66.3 million budgeted to run the country's
    diesel-fired electrical generators for the entire year.  After the
    power outage of April 19, ICE requested the state Regulatory
    Authority for Public Services (ARESEP) to approve a 23 percent
    increase in electrical tariffs to pay for the purchase of
    thermal-generated power.  ARESEP denied the request, stating that
    ICE must explain how the electrical system was allowed to fall into
    disrepair in the first place.  In response, ICE began implementing
    rolling blackouts on April 26.

    Can't Meet Future Demand, Either
    --------------------------------

    ¶8. (U) While Costa Rica has not adequately invested in new
    electrical generation projects and is currently unable to purchase
    power from Panama, electrical demand has continued to grow at an
    average rate of 6 percent a year.  Over the last year, Costa Rica's
    economy grew by 7.9 percent.  Manufacturing and Foreign Direct
    Investment (largely in the form of construction in costal areas)
    served in large part to fuel this growth, increasing their rate of
    real growth by 12.5 percent and 14.8 percent respectively in 2006.
    The rapid increase of manufacturing and construction has placed new
    demands on Costa Rica's stagnant electrical power generation system,
    leading to a situation in which ICE will need to invest USD 7
    billion (USD 500 million annually over the next 14 years) to
    effectively double power capacity by 2021 and meet projected demand.
     Before the crisis, ICE had no finalized projects to increase
    electrical generation capacity during the next two years.

    The Cost of the Energy Crisis
    -----------------------------

    ¶9. (U) News reports have already put the economic impact of the
    current energy crisis at anywhere from USD 20-100 million.  The U.S.
    multi-national paper company, Kimberly-Clark, reported that the
    power outages from April 19-20 cost the company USD 174,652.  Intel
    lost a reported 150,000 microchips that were on its production floor
    when the power failed.  News accounts have been rife with stories of
    private businesses closing their doors during the rolling blackouts
    and losing clients and production capacity.

    What Comes Next?
    ----------------

    ¶10. (SBU) To cut through the maze of speculation and conflicting
    blame, Embassy officials met with four experts from General Electric
    on May 2.  While lauding Costa Rica's efforts to use renewable
    sources for the majority of its power production (80 percent), the
    experts stated that Costa Rica's current crisis is due to a failure
    to maintain any reserve thermal capacity that could be brought fully
    online when circumstances warrant.  Now, Costa Rica is faced with a
    situation where they need to make critical decisions in a short
    period of time to prevent recurring power crises in the coming
    years.  The GE team said their company had seen this crisis coming
    for years, but their approaches to the GOCR (the latest in December
    2006) had been ignored or rebuffed.

    ¶11. (SBU) Even if ICE were to purchase new thermal turbines
    immediately, it would normally take 24-36 months to receive and
    install them, leading to another 2-3 years of annual energy
    shortages at the end of the dry season.  GE said that there are
    several alternatives to meet Costa Rica's immediate energy needs in
    the next 1-2 years, while the longer-term capacity is being
    delivered and installed.  GE originally intended to offer Costa Rica
    the option of delivering truck-borne turbines in the next 60-90 days
    to meet the country's short-term energy needs but was rebuffed.
    Instead, on May 4 President Arias announced that the rains had
    sufficiently filled the reservoirs and a new hydroelectric turbine
    was brought online ahead of schedule.  As a result, according to
    Arias, there is no need to continue the rolling blackouts.

    ¶12. (SBU) The GE experts said that for any short-term solution to
    succeed, Costa Rica also needs to simultaneously purchase additional
    thermal generators.  The experts informed the Embassy that due to
    increasing worldwide demand for power generation equipment, Costa
    Rica has a very short window of opportunity to place orders for
    equipment that could be delivered and installed in time to prevent
    outages next year.  The largest impediment to this solution,
    according to the industry experts, would be the failure of ICE and
    Costa Rican government to move rapidly in making and implementing
    decisions.
    COMMENT
    -------

    ¶12. (U) Costa Rica's energy crisis has not come as a great surprise.
     Experts and press have repeatedly warned over the last two years
    that ICE needed to adequately invest in new capacity to avoid the
    current situation. Unfortunately, this was not done.  The lack of
    real development of the sector, coupled with the general slow-moving
    decision-making process in Costa Rica does not bode well for Costa
    Rica's future energy security.  While the beginning of the rainy
    season may have filled the reservoirs and brought a temporary end to
    the current rolling blackouts, only difficult and
    uncharacteristically quick action by the GOCR and ICE over the next
    few weeks, which now seems highly unlikely.   Originally, the Arias
    administration drafted an emergency decree to give ICE and the GOCR
    more flexibility to quickly make timely and necessary decisions.
    However, the emergency decree was never signed, and there is no
    indication that Costa Rica is currently pursing long-term solutions
    that could forestall what will probably be even worse energy crises
    during the next few years.
    LANGDALE

`