In 2023, Panama's electricity consumption was marked by a significant reliance on low-carbon energy sources, which together comprised over 60% of the total electricity production. Hydropower was the predominant source, contributing nearly half of the electricity consumed. Wind and solar energy, though contributing smaller portions, each made up approximately 7% of the total. On the other hand, fossil fuels accounted for just over a third of Panama's electricity, with gas being the largest contributor at almost 22%. Coal made up a minuscule share, at less than 4%. This shift toward low-carbon sources showcases Panama's commitment to cleaner, more sustainable energy production.
Is Electricity Growing in Panama?
Electricity consumption in Panama is on the rise, evidenced by the latest consumption level of 2886 kWh per person, marking an increase from the previous record of 2787 kWh per person in 2021. This growth is promising; however, it contrasts with a notable decline in low-carbon electricity generation, which dropped to 1783 kWh per person from its previous high of 2184 kWh per person. The decrease of 401 kWh per person in low-carbon generation is concerning, as it highlights a need for Panama to strengthen its efforts in expanding its clean energy infrastructure to sustain and support continuous growth in electricity consumption.
Suggestions
To boost low-carbon electricity generation, Panama can learn from successful countries with significant shares of nuclear and solar energy. For instance, France and Slovakia generate more than half of their electricity from nuclear power, demonstrating the potential of this clean energy source in reducing reliance on fossil fuels. Similarly, Chile and Greece have made impressive strides in solar energy, with solar making up a significant portion of their energy mix. Panama can leverage its natural resources and geographical location by expanding both solar and, potentially, nuclear energy capabilities to achieve a greener and more sustainable energy future.
History
Historically, Panama has made various advancements in hydropower, notably in the late 20th and early 21st centuries. From the late 1970s through the late 1980s, Panama consistently increased its hydropower capacity, with significant expansions in the mid-1990s. Noteworthy years include 1999 and 2004, when substantial increases were recorded. However, there have been periods of decline, such as in 1998, 2001, and more recently in 2019 and 2023. These fluctuations stress the need for further diversification into other low-carbon energy sources, like solar and nuclear, to build a more resilient and sustainable electricity ecosystem for the future.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.