Electricity in Panama in 2023

In 2023, Panama's electricity consumption is characterized by a significant reliance on low-carbon energy sources, with more than half of the electricity generated—approximately 62%—coming from these clean sources. Hydropower is the predominant low-carbon source, contributing nearly 48% to the electric grid. Additionally, smaller but notable contributions come from wind and solar power, each providing around 7%. Despite this clean energy emphasis, fossil fuels still account for about 38% of Panama's electricity consumption, with gas being the major fossil fuel used at around 22%, followed by coal which adds roughly 4%. This blend highlights Panama's ongoing efforts to integrate low-carbon electricity while continuing to depend considerably on fossil fuels.

Suggestions

To further enhance its low-carbon electricity mix, Panama can draw lessons from countries that have succeeded in expanding specific green technologies. Considering countries with similar geographical or climatic conditions, Uruguay offers an exemplar with 28% of its electricity derived from wind power, and Chile demonstrates effective solar integration at 22%. These nations have shown that investing in wind and solar infrastructure can substantially increase the share of clean electricity. Additionally, global leaders like France (68% nuclear), Denmark (52% wind), and Lebanon (31% solar) stress the importance of diversification in clean energy portfolios, suggesting that Panama could explore expanding its wind and solar capabilities while remaining open to future nuclear energy investments to reduce fossil fuel dependence.

History

Historically, Panama's journey in low-carbon electricity has been predominantly driven by hydropower, with continual growth observed since the late 1970s. The early years, from 1978 to the mid-1990s, saw consistent but modest increments, which picked up pace in the 2010s. Notably, a surge occurred in 2012 and 2015, with hydropower generation markedly increasing by 1.3 and 1.2 TWh, respectively. The 2020s have been mixed, with a significant spike in 2020 followed by fluctuations, including a notable reduction in 2023. These trends underscore the pivotal role hydropower has played in shaping Panama’s low-carbon electricity sector, continuing to drive clean energy efforts alongside budding wind and solar contributions.

Electricity Imports and Exports

Balance of Trade

Data Sources