In 2023, Panama's electricity consumption composition reflects a strong contribution from low-carbon sources, which account for slightly more than 60% of total electricity generation. Hydropower is the dominant low-carbon energy source, representing nearly half of the total electricity supply. The remaining low-carbon electricity comes from a mix of wind and solar power, each contributing around 7%. However, fossil fuels still play a significant role in Panama's electricity generation, making up about 38%. Within the fossil category, gas is the primary source, contributing nearly 22%, while coal adds a smaller portion. This mixture of energy sources signifies Panama's commitment to clean energy, but also indicates the continued reliance on fossil fuels.
Data sources used on this page include EIA, Ember, IEA and World Bank. More about data sources →
Is Electricity Growing in Panama?
Electricity consumption in Panama is experiencing a modest upward trend, with recent averages reaching 2886 kWh per person, which marks an increase from the previous record of 2787 kWh per person set in 2021. Despite this encouraging growth in overall consumption, there is a concerning decline in low-carbon electricity generation on a per capita basis. The latest low-carbon electricity output stands at 1783 kWh per person, representing a significant drop from the record in 2021. This decline of over 400 kWh per person underlines the importance of exploring strategies to enhance the clean energy generation mix to ensure sustainable growth.
Suggestions
To increase low-carbon electricity generation, Panama could consider expanding its solar and nuclear capacity, taking a lesson from regions like Chile and Lebanon, where solar contributes significantly. Chile, for instance, has integrated solar to account for about a quarter of its electricity generation. Similarly, nuclear energy offers a high-capacity, low-carbon solution, as exemplified by countries like France and Slovakia, where nuclear power constitutes a major share of the electricity mix. Investing in these areas can help Panama diversify its low-carbon energy portfolio and effectively reduce its reliance on fossil fuels, contributing to a more sustainable future.
History
Looking at the historical development of Panama's low-carbon electricity, particularly from hydropower, there have been fluctuations over the past decades. Starting in the late 1970s to the mid-1980s, there was a steady increase in hydropower generation. The 1990s saw both rises and falls, with notable peaks in 1999. The early 2000s witnessed periods of both growth and decline, reaching a high in 2004. A substantial increase occurred in the early 2010s, with peaks in 2012 and 2015. However, the period following these gains saw more variability, with significant growth in 2020, only to be followed by a substantial decline in 2023. These developments highlight the importance of sustained and diversified investment in various low-carbon technologies to ensure consistent energy supply.
