Electricity in Panama in 2022

As of 2022, Panama's electricity consumption stands out due to its significant reliance on low-carbon electricity sources. Over three-quarters of the country's electricity, approximately 10.45 TWh, comes from these clean sources, with hydropower accounting for a substantial portion at about 9.24 TWh. In contrast, fossil energy sources contribute only a small fraction, with fossil fuels generating around 2.91 TWh and gas adding another 1.77 TWh. Panama's electricity consumption per person is somewhat behind the global average; with a population of about 4.5 million, the country averages roughly 372 watts per person, compared to the global average of 432 watts. This lower level of electricity generation can limit economic development and affect the quality of life, as access to consistent and sufficient electricity is crucial for industrial growth, healthcare services, and daily living standards.

Suggestions

To increase its low-carbon electricity generation, Panama can explore expanding its use of solar and wind energy, learning from successful countries with similar contexts. For instance, Brazil has achieved substantial wind energy generation, producing around 96 TWh, showing that tropical and subtropical regions can harness wind resources effectively. Furthermore, India and countries in Latin America such as Mexico have demonstrated significant growth in solar energy, generating 113 TWh and 21 TWh of solar electricity respectively. These examples suggest that Panama has significant potential to expand its solar and wind electricity generation, benefiting from technological advancements and investments seen in these pioneering countries. Additionally, considering the robustness and reliability of nuclear power, Panama could explore small modular reactors as a viable option for ensuring a stable and sustainable electricity supply.

History

In the historical context, Panama has seen fluctuations primarily in its hydropower generation over the past few decades. In the early 1980s, growth was consistent, with hydropower increasing by around 0.4 to 0.6 TWh each year. This trend continued into the 1990s with slight variations, although 1998 experienced a significant decline of 0.8 TWh. However, notable growth resumed shortly after, particularly with gains in 1999 (+1 TWh) and early 2000s, albeit with some years of declines. The most significant increase occurred in 2020 with a surge of 2.3 TWh, indicating periods of substantial investment and production. More recently, between 2017 and 2022, hydropower added between 0.6 to 0.9 TWh annually, solidifying its place as a cornerstone of Panama's low-carbon electricity generation strategy.

Electricity Imports and Exports

Balance of Trade

Data Sources