In 2023, Panama's electricity consumption is marked by a significant reliance on low-carbon sources, with more than 60% of its electricity coming from clean energy sources. Hydropower is the dominant player in Panama's clean energy landscape, contributing almost half of the total electricity generation. Wind and solar, although smaller contributors, make up nearly 7% each, showcasing Panama's strides toward diversifying its energy sources. Meanwhile, fossil fuels account for slightly more than a third of the electricity mix; gas is the primary fossil fuel source, making up nearly 22%, followed by coal at about 4%. The data illustrates Panama's strong inclination towards green energy but also highlights areas for further growth and diversification in clean electricity.
Data sources used on this page include Ember, IEA and World Bank. More about data sources →
Is Electricity Growing in Panama?
Electricity consumption in Panama is witnessing a modest upward trend, as seen in the per capita consumption increase to 2886 kWh compared to the previous peak of 2787 kWh in 2021. This growth, however, isn't mirrored in low-carbon electricity generation per capita, which has unfortunately decreased by 401 kWh from its record high in 2021. While the overall electricity consumption sees an upward trend, the decline in low-carbon generation raises concerns. This discrepancy prompts the need for strategic measures to enhance Panama's clean energy capacity, making up for the current reduction and ensuring that the country's growing energy needs are met sustainably.
Suggestions
To boost low-carbon electricity generation, Panama can draw inspiration from regions that have successfully harnessed solar and nuclear energy. Observing the success of solar energy in states like Nevada and countries like Cyprus and Chile, Panama could significantly benefit from expanding its solar capacity, given its favorable climate conditions. Moreover, nuclear energy, a cornerstone of clean electricity in countries such as France and Slovakia, which generate over 66% of their electricity from nuclear power, could provide a steady, reliable, and sustainable source of energy for Panama. By considering investments in both solar and nuclear energy, Panama could significantly cushion its electricity supply against fluctuations while enhancing its clean energy credentials.
History
Historically, Panama has experienced various changes in its low-carbon electricity landscape, primarily dominated by hydropower. During the late 20th century and into the early 2000s, hydropower saw sporadic growth punctuated by declines in 1998 and 2001. Subsequent years witnessed a resurgence, particularly notable with significant increases in 2012 and 2015. More recently, however, there have been setbacks, such as the considerable hydropower decrease in 2019 and another decline in 2023, overshadowing previous gains. These fluctuations underscore the need for Panama to diversify its clean energy sources beyond hydropower, ensuring robust and sustainable electricity growth in the face of evolving demands and environmental challenges.
