What challenges do solar and wind companies face in Panama?

Despite abundant renewable energy resources, solar and wind companies in Panama face economic challenges, given that the current power market model is based on conventional sources such as thermal and hydropower generation and does not recognise the unique operating characteristics of variable renewable energy (VRE) generation.

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.

Does Panama have solar power?

Since 2014, investments in solar and wind energy have grown markedly. Today, more than two-thirds of Panama’s electricity generation comes from clean sources, primarily through the contribution of hydropower. The country also has the largest wind farm in the region, and solar power generation – although still modest – has begun to take of rapidly.

Does Panama have geothermal energy?

Panama has sought to exploit its geothermal resources. In early 2017, the Technical University of Panama organised its first geothermal expedition to identify possible new sources of geothermal energy in the country (Richter, 2017).

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).

Is there a geothermal project in Panama?

In early 2017, the Technical University of Panama organised its first geothermal expedition to identify possible new sources of geothermal energy in the country (Richter, 2017). Plans were also announced for a possible 5 MW geothermal project in the Chiriquí province that would become the country’s first geothermal generating unit (Richter, 2013).