National Economy
The population of the Republic of Panama is approximately 4.46 million people[1]. In 2020, 96.7 % of the people in this Central American country had access to electricity[2].
In 2021, Panama’s economy was ranked 73rd in the world in gross domestic product (GDP)[3]. The country’s economy is dependent on operation of the Panama Canal, banking, tourism, and the export[4] of copper ore, packaged medicaments, cargo ships, and bananas.
Environment Policies
In March 2016, Panama enacted the National Energy Plan 2015-2050, which is intended to increase energy security, improve energy efficiency, and reduce greenhouse gas emissions.
In April 2016, Panama signed the Paris Climate Agreement[5], making an unconditional pledge to increase the share of non-hydropower renewables in the electricity mix from 3% to 15% by 2030 and 30% by 2050.
In 2020, the state-owned utility[6], Empresa de Transmisión Eléctrica used renewable energy (75.8%), oil (13.1%), coal (5.8%), and natural gas (5.3%) to generate electricity in Panama. Hydropower is the dominant source of renewable energy used to generate electricity in Panama.
Recent renewable energy projects in Panama include:
- 150 MW Wind Project – In January 2022, Panamanian power company, Luz Eolica de Panama announced plans to build the Quijada del Diablo wind project at a site approximately 175 miles west of the nation’s capital, Panama City. The project is forecast to be commissioned by year-end 2024.
- 120 MW Solar Project – In January 2022, Spanish solar company, Avanzalia Solar commissioned the Penonomé solar plant at a site approximately 50 miles southwest of Panama City.
- 60 MW Wind Project – German power company, Santa Cruz Wind is continuing work on a wind project at site approximately 45 miles southwest of Panama City. The project is forecast to be commissioned by March 2024.
- 30.8 MW Solar Project – In February 2022, Italian utility, Enel SpA commissioned the Madre Vieja solar project at a site approximately 175 miles west-southwest of Panama City.
- 26.2 MW Solar Project – In February 2022, Enel SpA commissioned the Esperanza solar project at a site approximately 200 miles west-southwest of Panama City.
- 13.2 MW Solar Project – In December 2021, Enel SpA commissioned the Jagüito solar project at a site approximately 100 miles southwest of Panama City.
Conclusions
Panama imports all of the nation’s fossil fuels (coal, oil, and natural gas) for power generation, heating, and transportation. In 2020, Panama spent[7] U.S. $4.78 Billion for imported refined petroleum and U.S. $3.45 Billion for imported crude oil.
On 24 February 2022, Russia invaded Ukraine, resulting in the United States, Canada, and the European Union placing embargos on Russian exports. The international price for crude oil has increased by over 50% from May 2021 to May 2022.
Panama has significant undeveloped renewable energy resources, including offshore wind, onshore wind, solar, biomass and hydropower. Ironically, Russia’s invasion of Ukraine and the rise in fuel prices s is causing fossil fuel importing countries to accelerate the development of wind and solar projects around the world.
Panama is accelerating the development of green low cost renewable energy with the rising price of fossil fuels.
Jack Kerfoot
Website – “Our Energy Conundrum”
www.jack kerfoot.com
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio and television stations from New York City to Los Angeles on numerous energy related topics.
[1] Republic of Panama Population (2022) – September 4, 2022, www.worldometers.info
[2] World Bank, “Access To Electricity (% Population) – Panama”
[3] Gross Domestic Product By Country 2021 – Worldometer
[4] The Observatory of Economic Complexity (OEC) – Panama
[5] Carbon Brief “Paris 2015: Tracking Country Climate Pledges”
[6] Our World In Data, Panama: Energy Country Profile by Hanna Ritchie and Max Roser
[7] The Observatory of Economic Complexity (OEC) – Panama Imports