The exhaustion of the potential of hydroelectricity and social resistance to its use, is bringing to the forefront alternative energy as a solution to meeting electricity demand which is growing at 5% a year.
Energy imports from Central America and Colombia, through the interconnection network and the possibility of building more thermal power plants and renewable options are choices the country has to meet future electricity demand, not only because of social opposition to hydroelectric projects, but also because of the lack of rivers with enough channels to operate a dam.
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. "
The electric interconnection company between Colombia and Panama will be located in the latter.
A reunion between the presidents of both countries concluded with a company name change from "Intercolpa" to "Panama Colombia Interconnection" (ICP), and with the agreement of locating the company's facilities in Panama.
The prensa.com article states that "the exact location of the company is not known.
About 30 to 40 electric energy producers will be participating in September in a public tender process to earn a space in the market.
Victor Gonzalez, manager of Mercado Electrico de la Empresa de Transmision Electrica (ETESA, a power company) explained that in the next few months there should be 120 megawatts more of power that will be generated, thereby guaranteeing that this years demand for energy will be met.
Panama's electricity consumption continues to set new records that edge ever closer to maximum generating capacity.
The National Dispatch Center reported that demand yesterday was the highest ever – 1,059 megawatts, compared with a capacity of 1,072 megawatts.
Because of scant rainfall, water levels in the nation's main hydroelectric dams are close to minimum levels.