Production and Consumption
Panama Energy Sector
In 2016 , the Government of Panama approved the National Energy Plan 2015-2050, to serve as a long-term roadmap for diversifying the energy sector and advancing energy access, energy efficiency, energy security and the overall decarbonisation of the "Panama Energy Sector"
Moving forward towards affordable and clean energy
Panama Energy Facts
National Energy Secretary
"There is a great potential for Panama to become an energy hub for its strategic location, the expansion of the Panama Canal and the growing Liquefied Natural Gas market"
Victor Carlos Urrutia, Former Secretary, National Secretariat of Energy, Panama.
Growing Domestic Demand
Due to its rapidly expanding economy, energy demand in Panama is forecasted to grow by 5.2% per annum between 2014 and 2050. The country is open for external investment to meet this additional demand
Installed Capacity
Panama has a generation capacity of 4,000 megawatts of installed power
Energy Demand
Current demand is around 1,800 megawatts, meaning we have an oversupply
Transmission, Distribution and Regulation
ETESA
ETESA is by Law, the only operator and owner of the national transmission system that consists mainly of three trunk transmission lines.
Since ETESA transports the electricity generated to the final consumer (through the distribution companies), the Company provides a essential service for the economy of Panama.
ETESA
The Company has by law a monopoly in the transmission, dispatch, control and demand planning for the generation of electricity in the country.
The Company's governing authority is its Board of Directors, which is currently chaired by the National Secretary of Energy.
ENSA
ENSA distributes electrical energy to more than 430,000 users in Eastern Panama, Colón, Darién, the Kuna Yala Region and the Pacific Islands.
Naturgy
The Division in charge of Electric Distribution in Panama is responsible for the operation and execution of all actions in the company's high, medium and low voltage network.
ASEP
- Panama´s National Authority of Public Services
EGESA
The State Enterprise of Electric Generation S.A. (EGESA) must accentuate its participation in the Electricity Market with the management of different generation projects, allowing the addition of new megawatts of electrical energy to the system, allowing the State to reinforce its role as a generator in healthy competition with the private sector.
Renewable Energy in Panama
Wind
Solar
Hydro
7% of Energy Generated in Panama
Hydro
Solar
Hydro
70% of Energy Generated in Panama
Solar
Solar
Solar
5% of Energy Generated in Panama
Some of the Energy Producers in Panama
AES
340 people work at AES in Panama.
Generates 24% of the energy that the country needs.
Have an installed capacity of 777 MW.
UEP
UEP has developed three wind farms in Panama that add an installed capacity of 400 MW.
Highlight the Penonome-Antón area with an estimated power of 330MW. These sites have easy accessibility, with feasible solutions for connection to the electricity system and on land already transformed for agriculture and livestock, thus avoiding any deforestation and / or environmental degradation.
CELSIA
Celsia is the energy company of Grupo Argos, passionate about renewable energy and energy efficiency. They generate and transmit efficient energy from renewable sources with thermal backup.
CELSIA
Enel Green Power Panamá (EGPPA) manages the hydroelectric power station and the largest solar operation in the country, with a total of 0.36 GW of renewable energy.
EGPPA manages three operations: the Fortuna hydroelectric plant and the Chiriquí photovoltaic plant, both in the Chiriquí province; next to the Sol Real photovoltaic complex, which has five plants distributed between the provinces of Chiriquí and Coclé
Most Important Renewable Energy Projects in Panama
FORTUNA (HYDRO ENERGY)
Fortuna is the largest hydroelectric plant in Panama, supplying approximately 18% of the country's total energy demand and vital for the health of the national interconnected system.
Located in Chiriqui
Panama´s largest Hydroelectric energy production site
PENONOME (WIND ENERGY)
It is the largest wind farm in Central America and the Caribbean, with a capacity to produce on average 12.5% of the country’s electricity demand and up to 25% of demand during the dry period.
It is estimated that the power generation of this park will save US $ 88 million per year to the Panamanian Electricity System and will avoid the emission of 450 thousand tons of carbon to the environment.
Located in Penonome
Panama´s largest wind power production site
IKAKOS (SOLAR ENERGY)
InterEnergy Group inaugurated the IKAKOS photovoltaic solar park, the largest in the country, located in David, Chiriqui province, with 138,960 Jinko solar panels that together have a nominal power of 40 MWAC.
Ikakos will make an annual contribution of 84.58 GWh to the energy matrix of Panama, which would mean meeting the electricity demand of approximately 30,000 families.
Located in Chiriqui
Panama´s largest Solar energy production Site
#GivingART with ETESA General Manager, Carlos Manuel Mosquera Castillo
The safe, reliable and efficient shipping and storage of crude oil is of great importance to the world
Benefits and Incentives
Gas
Wind
Wind
- Tax credit of up to 5% of the total direct investment value is applicable on income tax for civil works that become public infrastructure
- Custom duties exemption for equipment, machinery, materials, spare parts and others imports necessary for plants proper functioning
- Possibility to use an accelerated amortization method to depreciate tangible assets
- Natural gas generation equipment manufacturers within Panama are exempted from paying all national taxes for 20 years.
- The equipment includes: mechanical, electronic, electromechanical, metallurgical and electrical equipment
Wind
Wind
Wind
- Tax credit of up to 5% of the total direct investment value is applicable on income tax for civil works that become public infrastructure
- Exemption from all import taxes for equipment and materials used for the installation and maintenance of wind powered generation plants
- Possibility to use an accelerated amortization method for equipment used for wind powered generation
- Wind power generation equipment manufacturers/installers within Panama are exempted from paying all national taxes for 15 year
Biomass
Biomass
Biomass
- Full income tax exemption
- VAT exemption on imports
- Payment exemption from commercial and industrial license taxes
- Full exemption from custom duties for equipment and materials used for developing power generation projects
- Exemption on taxes, fees, contributions and other local charges
Solar
Biomass
Biomass
- Tax credit of up to 5% of the total direct investment value is applicable on income tax for civil works that become public infrastructure
- Exemption from all import taxes for equipment and material used for the installation and maintenance of solar based generation plants
- Possibility to use an accelerated amortization method for tangible assets