Panama as Solar Energy Market

The growth of electricity demand and favorable prices ranging from between 20 and 40 cents per kilowatt hour have been highlighted as most noteworthy.

Monday, June 16, 2014

It is expected that the solar market will add 700 megawatts of new capacity in 2014, representing 2 percent of world demand in the solar market until 2018. This rate requires developers to move with speed in order to enter new countries.

Panama stands out as a growth market for an interesting reason. The country is a dollarized economy with good interconnectivity, there are intermodal transport options through the Panama Canal, and favorable energy prices typically ranging from between 20 cents and 40 cents per kilowatt hour. Greenwood Energy has recently completed the first utility-scale solar system in Panama and is now about to begin building a 44 megawatt project using a PPP at the University of Panama.

Camilo Patrignani, CEO of Greenwood Energy stated that "... Local partners are a key component of success. Local businesses have been developing projects for years, and have good portfolios with new projects, but lack the required access to capital and supply chains. For these companies partnering with a larger developer becomes a "win-win" situation for both parties. Local developers also tend to have the necessary connections to secure land, environmental permits and power purchase agreements, and have an understanding of large energy customers in an area in which an outsider could take years to develop governmental or business contacts. Knowledge of these local markets is essential for developers to access customers and do business. "



More on this topic

Panama: Billions in Solar Energy?

October 2015

The company SkyPower has said it will invest in Panama $1 billion over 5 years in the construction of power plants and a solar energy research center.

After meetings with President Varela in the US, one of the largest solar companies in the world issued a press release announcing the construction of wind farms that will generate up to 500 MW, with an investment of one billion dollars.

Lack of Funding for Solar Energy in Honduras

October 2014

27 plants solar projects have been approved by the government, of which only four are under construction and the remaining 23 are in the fundraising stage.

It is estimated that the investment required for the development of the approved projects is between $1.644 and $1.827 billion, which why the companies behind the 23 projects have not yet started seeking financing in the international market.

Subsidy for Solar Energy in Honduras

October 2014

Photovoltaic projects will have a special incentive of three cents per kilowatt-hour (kWh), which is on top of the 10% established by the Law on the Promotion of Electricity Generation using Renewable Resources.

Elheraldo.hn reports that "... The diversification of the energy matrix is ​​not any way to get out of the financial crisis for the National Electric Power Company.

Solar Power Projects in Honduras

August 2014

The Pavana Solar photovoltaic park will be one of the first to start trading, supplying 25 MW to the national grid starting March 2015.

In March the Congress of Honduras approved a contract which enables the company Energía Básica del Grupo Lufussa, to connect its 25 MW photovoltaic plant, located in the south of the country, to the network of the National Electricity Company (Empresa Nacional de Energía Eléctrica or ENEE).

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