Panama is currently generating more than half of its electricity from low-carbon sources, with almost 62% coming from clean methods. A significant portion, nearly half, is produced by hydropower alone. In contrast, fossil fuels account for a little over one-third of the electricity production, with gas being the most prominent fossil fuel at around 22%. Wind and solar power are contributing almost 7% each, while coal provides a much smaller share at just under 4%. This mix of energy sources positions Panama as a country that primarily relies on low-carbon electricity, showcasing a promising commitment towards environmentally friendly energy.
Data sources used on this page include Ember, IEA and World Bank. More about data sources →
Is Electricity Growing in Panama?
Electricity consumption in Panama, based on the latest data for 2023, has seen an increase to 2886 kWh per capita, indicating a growing demand compared to the previous record in 2021, which was 2787 kWh per person. This growth signifies enhanced electricity usage by around 100 kWh more per person. However, the generation of low-carbon electricity has unfortunately decreased, with the latest figure at 1783 kWh per capita, down from the 2021 record of 2184 kWh. This reduction of over 400 kWh per person in low-carbon electricity generation is concerning, especially as the overall demand for electricity is on the rise. Such a decline underscores the need to refocus efforts on boosting the share of clean energy.
Suggestions
To increase low-carbon electricity generation, Panama can take inspiration from regions that have been successful in integrating solar and wind power at higher capacities. Uruguay and Ireland, both drawing a third or more of their electricity from wind, present clear examples for Panama considering its own wind resources. On the solar front, states like California, achieving about 31% electricity from solar energy, serve as a model for solar expansion. Moreover, exploring nuclear energy is a strategic move that Panama can consider. Examples can be seen in countries like France and Slovakia, where nuclear power provides a significant 67% and 66% of their electricity, respectively. These successful strategies from other regions exemplify promising pathways for Panama to enhance its sustainable electricity generation.
History
Looking into the history of low-carbon electricity in Panama, hydropower has been a key contributor. Notably, the late 1970s and the 1980s saw a steady rise, with increments mostly at 0.4 TWh. The decade of the 1990s had fluctuating trends with both increases and decreases, but there was a notable peak increase in 1999 of 1 TWh. The early 2000s also witnessed instability with sharp declines and recoveries until 2004. More significant growth occurred from 2012 onwards, highlighted by an increase of 1.3 TWh in 2012 and a further 1.2 TWh in 2015. However, the downturns in 2019 and recently in 2023, showing reductions of -2.8 TWh and -2 TWh respectively, calls for a critical evaluation and adaptation of strategies to avoid such disruptions, and emphasize stable growth in clean electricity production going forward.
