In Panama, electricity generation is predominantly based on low-carbon sources, with more than half of its electricity, approximately 62%, being generated from clean energy technologies. Hydropower is a major contributor, producing nearly 48% of the total electricity. Other clean sources like wind and solar contribute smaller shares, around 7% each. Meanwhile, fossil fuels still play a significant role, making up close to 38% of Panama's electricity generation. Natural gas and coal lead among the fossil fuels, with natural gas generating about 22% and coal contributing close to 4%.
Is Electricity Growing in Panama?
Electricity consumption in Panama has seen a slight upward trend. In 2023, the average electricity consumption reached around 2886 kWh per person, marking a small increase from the previous record in 2021 that stood at 2787 kWh per person. Despite this overall increase in consumption, there has been a decline in per capita low-carbon electricity generation since 2021, with the latest numbers showing a decrease of 401 kWh per person in low-carbon generation. This worrisome decline signifies a need for renewed focus on expanding low-carbon electricity to meet growing demands.
Suggestions
To enhance its low-carbon electricity generation, Panama can draw lessons from regions with strong commitments to clean energy. Countries that have successfully integrated nuclear into their electricity mix, like France and Slovakia where nuclear makes up over 60% of generation, highlight the potential of nuclear energy. Furthermore, regions like Denmark and Iowa have demonstrated powerful growth in wind energy, generating over half of their electricity from this source. Additionally, embracing solar power like Lebanon, where solar electricity generation hits 31%, can significantly enhance Panama's low-carbon strategy. Expanding nuclear alongside solar can diversify Panama's clean energy sources, securitizing energy supply while reducing fossil fuel reliance.
History
Panama's history with low-carbon electricity has been shaped largely by hydropower developments. In the late 1970s and 1980s, growth was marked by consistent increases, with 0.4 to 0.6 TWh added annually in various years. This steady trend continued with significant updates in 1999 and 2004, each year adding around 1 TWh. Despite occasional declines, such as in 1998 and 2001, where negative growth was observed, these were offset by substantial increases – notably a massive 2.3 TWh spike in 2020. However, the recent reduction in 2023 by 2 TWh signifies a critical moment for Panama to bolster low-carbon generation capacities to ensure sustainability and meet future demands.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.