Construction projects for water treatment plants, and extensions to the Metro and the airport, are works that will considerably increase demand for electricity in the coming years.
According to the National Interconnected System Plan 2017-2031, construction of several water purification plants in different areas around the country will increase demand for electricity, as they are "...
The plan to reduce subsidies on electricity tariffs could be executed within four years, between 2018 and 2022, and in coordination with the business sector.
The Ortega administration's plan is to start with revision of the current subsidy schemes and develop a strategy to reduce them gradually.
Bayardo Arce Castaño, adviser of Economic and Financial Affairs at the Presidency, explained: "...The IDB is going to lend us $65 million to make progress in the regulation of the electricity sector.The idea is that this reorganization take place between 2018 and 2022.It is not that tomorrow or the first of January of 2018 the subsidy will be removed or the rate lowered or raised, it is not like that.This is a four-year affair. "
On October 20th and 21st entrepreneurs from the region will gather together in Panama City to discuss issues such as the electricity market rules, new and renewable energy projects.
From a statement issued by the International Symposium on Energy:
This year the 8th. International Symposium on Energy seeks to promote spaces for reflection on energy issues, to help analyze the performance and limitations of developing new projects, build consensus, define the options for the energy market and, finally, develop a social impact using the media.
It is estimated that 100 MW of extra energy a year demanded by Panamanians require an average investment in generation and distribution systems of $400 million a year.
Every year the addition is needed of another 100 MW of power in order to meet the country's growing demand for energy, representing an investment of approximately $400 million a year, according to data from the National Energy Secretariat.
The clean energy company VIASPACE has announced that it will be designing and building, together with the Nicaraguan company Agricorp, a plant which generates energy from waste.
From a statement issued by VIASPACE:
VIASPACE Inc. announced that together with Agricorp it has signed an agreement to acquire engineering and construction supervision of a 12 MW biomass plant, which will measure 834 hectares (2,060 acres).
On october 15th and 16th companies from the sector will gather together in Panama City in order to discuss issues such as energy efficiency, technology and the use of renewable energy in the region.
From a statement issued by the Union of Industrialists of Panama:
Panama, September 18, 2014. The Union of Industrialists of Panama (SIP), in light of energy issues and the implementation of new regulations that will reduce the cost of energy, will be holding from 15th to 16th of October 2014, at the Hotel El Panama, the 7th International Symposium on Energy entitled: "Industry, Innovative contributions to the electricity market.
Hydroelectric projects and expansion of distribution networks are part of the opportunities that Colombian Power firms are looking to take advantage of in the Isthmus.
There are now three Colombian energy sector companies that have decided to venture into Central America to be part of the development of an activity that still has much room for growth in the region.
Congress will start discussing in the next few days a bill that exempts import taxes to generators using solar technology.
Panamaamerica.com.pa reports that "the diversification of the energy matrix through the use of renewable natural resources, such as solar and wind power has become one of the main objectives of the policy to generate electricity in the country. "
Cenérgica is planning to build in El Salvador a coal power generation plant, which would produce about 150 megawatts.
However, according to Ricardo Hernandez, CEO of Cenérgica, execution of the project planned by the company IC Power, part of Israel Corporation Limited (IC) will depend on the suitability of the tender conditions for the contract for the long-term supply of 350 MW .
In order to meet the demand for electricity in the next few years, which will grow at 6% per annum, $3 billion will be invested.
An article in Prensalibre.com reports that Vicente Prescott, national secretary of Energy, said that in Panama "electricity demand will grow, on average, 6 percent a year over the next few years, so $3 billion will be invested in order to meet this increase. "