In 2023, Panama's electricity consumption is notably shaped by a significant reliance on clean energy. Low-carbon sources account for more than 60% of the country's electricity, with hydropower being the predominant contributor, supplying almost half of the total electricity. Wind and solar energy also make meaningful contributions, each providing just shy of 7% of the electricity mix. On the other hand, fossil fuels still play a substantial role, accounting for roughly 38% of electricity generation. Among these, gas is the most significant, contributing more than 21%, whereas coal, the least preferred form due to its high pollution levels, represents a smaller fraction at nearly 4%. This composition highlights Panama's ongoing transition towards a balanced energy mix with a strong emphasis on low-carbon energy sources.
Is Electricity Growing in Panama?
Despite this, electricity consumption in Panama shows a moderate upward trend. In 2023, electricity use per person reached around 2886 kWh, exhibiting an increase from the previous peak in 2021 of 2787 kWh per person. This rise, while moderate, signifies a positive development towards increased electricity availability and usage. However, the low-carbon electricity generation has faced a setback. Historically peaking at 2184 kWh per person in 2021, the latest figures reflect a decline to 1783 kWh per person, resulting in a troubling reduction of 401 kWh per person. This dip in low-carbon output is concerning as it indicates a potential challenge in Panama's progress towards clean energy, underscoring the need for strategic planning to expand its low-carbon electricity generation capacity.
Suggestions
To bolster low-carbon electricity generation, Panama can draw valuable lessons from regions excelling in clean energy production. Solar power represents a significant opportunity, as evidenced by Nevada and California, each of which generates over 30% of its electricity from solar energy. Panama's geographical location, with abundant sunlight, makes it a prime candidate for similar endeavors. Similarly, regions like Denmark and Iowa showcase exceptional wind energy generation capabilities, with shares of 60% and 57% respectively. Panama can also consider the potential for nuclear energy, learning from countries such as France, Slovakia, and Ukraine, where nuclear constitutes a majority share of total electricity production. By fostering both solar and wind investments, while considering nuclear as a strategic option, Panama could substantially enhance its low-carbon electricity generation.
History
Panama's history of low-carbon electricity generation has largely revolved around hydropower, with fluctuations observed over the decades. In the late 20th century, incremental growth was noted, such as the increase of 0.4 TWh in the late 1970s and early 1980s, and more substantial rises like the 1 TWh increase in 1999. However, the turn of the century saw instability, with significant drops such as the 0.9 TWh reduction in 2001 and the 0.6 TWh decrease in 2003. The past decade has been a roller-coaster of changes, highlighted by a major increase of 2.3 TWh in 2020, followed by a disappointing decline of 2 TWh in 2023. These fluctuations signal a need for a more diverse and stable approach in Panama's low-carbon strategy, emphasizing a shift towards incorporating solar and potentially nuclear energy to complement its hydroelectric foundation and to steer clear of repeated declines, ensuring steady and sustainable electricity growth.
