In Panama, the state of electricity consumption in 2023 reveals that low-carbon energy sources constitute over 60% of the electricity generation, with hydropower alone generating close to half of the nation's electricity. Wind and solar energy contribute almost equally, each accounting for nearly 7% of the total electricity mix. On the other hand, fossil fuels make up a bit over a third of the electricity supply, with gas being the dominant fossil source at more than 20%, while coal represents a minor portion, contributing less than 4%. Clean energy sources have a substantial presence, which marks a distinctive shift towards sustainable electricity generation in Panama.
Is Electricity Growing in Panama?
Panama's overall electricity consumption has experienced growth with the latest figure exceeding the previous peak in 2021. Latest data demonstrate electricity consumption at 2886 kWh per person, which is an increase of 100 kWh from the previous record in 2021. Unfortunately, low-carbon electricity generation specifically saw a decline during the same period, falling by 401 kWh per person. This suggests an increased dependence on fossil fuels in the past two years, which is concerning given the potential impacts on climate and public health. The challenge now is to maintain growth while maximizing low-carbon sources to ensure a cleaner energy future.
Suggestions
To enhance low-carbon electricity generation, Panama can learn from regions that have effectively harnessed solar and wind energy, alongside nuclear power. For instance, countries like Lebanon, Nevada, and Chile utilize solar power extensively, providing a model to expand Panama's solar installations. In wind energy, countries such as Denmark and U.S. states like Iowa demonstrate how wind power can become a major electricity source. Additionally, the significant role of nuclear energy in countries such as France and Slovakia illustrates its potential as a reliable clean energy source. By integrating these approaches, Panama can diversify and strengthen its electricity generation portfolio to ensure a resilient and sustainable future.
History
Historically, Panama's low-carbon electricity expansion was predominantly driven by hydropower. From the late 1970s through the 1990s, hydropower steadily increased with periodic fluctuations. Notable increases occurred in the early 2000s and again in the last decade, with 2012 and 2020 seeing particularly significant boosts in hydropower generation. However, the sharp decline in hydroelectric output in 2019 and less so in 2023 stresses the need for diverse low-carbon options like solar and nuclear to balance out potential shortfalls in any single energy source. Panama's ongoing evolution toward a sustainable electric grid is pivotal for the country's environmental and economic advancement.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.