What is Panama's power system like in 2017?

In 2017, Panama’s power system had very large installed hydropower capacity (54% of total capacity) and substantial VRE capacity (45.3%). The generation breakdown was 64% renewable energy (36% run-of-river hydro, 18% reservoir hydro, 8% wind, 2% solar photovoltaics (PV)) and 36% thermal generation (29% oil and 7% coal).

How much electricity does Panama need?

At the same time, electricity demand in the country has continued to increase, reaching a peak demand of over 1 600 megawatts (MW) in 2015. To meet this growth, Panama introduced wind and solar photovoltaic (PV) energy in 2013, which reached 270 MW and 90 MW of installed capacity by 2016, respectively.

What are the challenges facing Panama's energy sector?

Challenge: Planning will remain an important cross-cutting area for Panama’s energy sector, as planners must cope with rising variability and uncertainty from the envisaged high penetration of solar and wind generation through to 2050.

What challenges do solar and wind companies face in Panama?

Despite abundant renewable energy resources, solar and wind companies in Panama face economic challenges, given that the current power market model is based on conventional sources such as thermal and hydropower generation and does not recognise the unique operating characteristics of variable renewable energy (VRE) generation.

Are power system operations in Panama still a 'old paradigm'?

Challenge: Power system operations in Panama still reflect the “old paradigm” of centralised, dispatchable generation units. Given the unique physical conditions of VRE sources, challenges emerge for system operation with high shares of variable renewables.

How does Panama rely on fossil fuels?

Panama depends heavily on fossil fuels, which have historically accounted for roughly two-thirds of total primary energy supply. The country’s transport sector has until recently relied almost entirely on oil and oil products.