Proposal to Make Panamanian Electricity Market More Flexible

The Energy Department has announced that it will revise regulations on the market and energy contracts in order to make it more competitive and attract more investment to the sector.

Friday, September 5, 2014

Generating the conditions in the electricity market to encourage more private companies to invest is the aim of the Energy Department, whose chief, Victor Urrutia, said that "... current investments in power generation are insufficient to meet the growth in demand which is expected in the next few years. "

In order to resolve the difficulties facing the sector in the short term and deal with next summer, Urrutia said the purchase of 200 MW will be tendered and timely purchases will be made in the Central American market ....he added that ... "in the medium and long term ... revision will be made of the rules of the market and for contracts in order to install new generation capacity."

Prensa.com reports that "...The scenario posed is different from that experienced in recent years, when in some tenders only one bidder submitted a proposal.
The energy sector problems also affect transmission, which has not received the relevant investments in recent years."



More on this topic

Guatemala: Perspectives for the Energy Sector

May 2016

According to the CNEE the current available power will be able to supply the market for more than 15 years, even in a scenario with increasing demand, therefore it is not recommending new tenders in the short term.

The 'Conclusions' section of the document "Indicative Plans for Generation and Transmission 2016" by the National Electric Energy Commission (CNEE by its initials in Spanish) :

Panama: Exceptional Market for Energy Industry

October 2015

In the next 35 years more than $11 billion will need to be invested in new projects in order to meet electricity demand, which is projected to grow at an average annual rate of 5%.

Projections by the General Secretariat of Energy also indicate the need to invest in replacing power lines every ten years, with an estimated $3 billion of investment within 35 years.

International Event on Energy in Panama

August 2015

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.

Panama: $400 million a Year on Energy

May 2015

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.

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