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.

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.

How can Panama adapt its energy system?

To adapt Panama’s energy system to this evolving paradigm, a comprehensive plan is needed that considers a rapid growth in demand from the electrification of transport, including from the introduction of expanded metro lines, electric passenger vehicles and electric buses.

Does Panama have solar power?

Since 2014, investments in solar and wind energy have grown markedly. Today, more than two-thirds of Panama’s electricity generation comes from clean sources, primarily through the contribution of hydropower. The country also has the largest wind farm in the region, and solar power generation – although still modest – has begun to take of rapidly.

Does Panama have a diesel back-up plant?

The plant ceased operations recently, although this activity is expected to resume in the future. Panama’s electricity market has an 8.1 MW diesel-based back-up plant (Urbalia Cerro Patacón), which uses methane as a by-product of waste.

Is Panama suitable for grid-connected wind power?

The suitability analysis for grid-connected wind power shows that Panama’s wind generation facilities correspond to the areas with higher resource (Figure 24), while the areas suitable for decentralised wind remain distant from the main transmission system but within strong resource areas (Figure 25).