What are the challenges facing Panama's energy sector?

Challenge: Planning will remain an important cross-cutting area for Panama’s energy sector, as planners must cope with rising variability and uncertainty from the envisaged high penetration of solar and wind generation through to 2050.

How much of Panama's energy is renewable?

The goal laid out in Panama’s National Energy Plan aims to generate 70% of its energy from renewable sources by 2050. Panama produces 54% of its energy through hydropower. An isthmus of land situated between the Atlantic and Pacific oceans, Panama has many naturally flowing sources of water.

Does Panama have a wind energy potential?

Ofshore wind energy potential has yet to be assessed. Panama has 270 MW of installed wind power capacity, located entirely in the municipality of Penonomé, in the province of Coclé (SNE, 2015).

How much energy does Panama use?

Consumption reached 2 816 kboe in 2014 (Figure 5). Since 2010, the sector has accounted for about 15% of total final energy consumption in Panama, and its electricity consumption has maintained an annual average growth rate of 6.2% (Figure 9).

Which sector consumes the most energy in Panama?

The transport sector includes both cargo and passenger transport, and is the largest consumer in Panama’s total final energy consumption, at around 45% (Figure 3). The number of vehicles on the road in Panama has accelerated in recent years, from 564 155 in 2012 to 718 518 in 2015 (Figure 7).

Does Panama offer tax incentives for wind & solar energy?

More recently, Panama established tax incentives for wind and solar energy. Law 44 of 2011 created wind-specific auctions, as well as accelerated depreciation on wind equipment and tax exemption for up to 15 years for wind equipment producers based in Panama.