Panama's current electricity consumption profile in 2023 reveals a significant reliance on low-carbon energy sources, which account for more than half of the country's electricity generation. Hydropower is the dominant player, contributing nearly half of Panama's electricity, making it the foremost low-carbon source. Meanwhile, wind and solar energy add moderate contributions of almost 7% each to the clean energy mix. On the other side, fossil fuels still constitute a considerable portion of electricity production with over a third of total generation, predominantly from gas, which makes up about 22%, followed by a smaller fraction from coal.

Is Electricity Growing in Panama?

In terms of electricity consumption trends, Panama has seen a modest growth in its per capita electricity usage, from a previous record of 2787 kWh/person in 2021 to 2886 kWh/person in 2023. This increase by 100 kWh/person marks a positive direction towards greater electricity consumption. However, it's worrying to note a decline in low-carbon electricity generation, which has decreased by 401 kWh/person since its last high in 2021. This decline in clean electricity generation needs urgent attention, as growing fossil fuel dependency would worsen air pollution and climate-related impacts.

Suggestions

For Panama to elevate its low-carbon electricity generation, the country can take valuable lessons from regions with notable clean energy advancements. California's successful expansion of solar energy, contributing nearly a third of its electricity, could serve as an inspiration for Panama to boost its solar capabilities. Moreover, the impressive strides made by countries like France in leveraging nuclear energy to account for a substantial portion of their electricity could guide Panama in considering or expanding nuclear projects. As Panama seeks to decrease reliance on fossil fuels, strategic investments in solar and nuclear energy will be vital for a sustainable future.

History

The history of low-carbon electricity in Panama, particularly through hydropower, has experienced various phases of growth and decline. The early years saw moderate and consistent increases, notably during the late 1970s and early 1980s, with steady increments in hydropower capacity. The late 1990s were marked by fluctuating outputs; while 1998 and 2001 witnessed significant decreases, the subsequent recoveries demonstrated resilience. The 2010s opened with strong growth, highlighted by a 1.3 TWh increase in 2012. Yet, the period was also punctuated by declines, notably in 2019 and again in 2023, signaling a need for strategic planning and investment to revitalize and expand Panama's low-carbon electricity infrastructure.

Electricity Imports and Exports

Balance of Trade