Electricity in Panama in 2022

In 2022, Panama's electricity consumption predominantly relied on low-carbon sources, with over three-quarters of its electricity coming from clean energy. Hydropower alone contributed to more than two-thirds of its total electricity generation, highlighting Panama's strong focus on utilizing its abundant water resources. Meanwhile, fossil fuels accounted for just under a quarter of the electricity mix, with natural gas being the largest contributor within this category, closely followed by coal. Wind and solar energy together comprised almost 9% of the electricity supply, underscoring Panama's growing diversity in low-carbon electricity sources. These figures reflect Panama's commitment to reducing carbon emissions and achieving a more sustainable energy future.

Suggestions

To further enhance its low-carbon electricity generation, Panama can draw inspiration from countries that have successfully integrated various clean energy sources into their electricity mix. For instance, Denmark's significant reliance on wind energy, which constitutes nearly 60% of its electricity, could serve as a model for Panama, given the latter's developing wind capabilities. Similarly, Chile's focus on solar power, with about a fifth of its electricity sourced from solar energy, highlights the potential for solar expansion in Panama, a country also blessed with abundant sunshine. Investing in these sustainable energy sources could significantly reduce Panama's dependence on fossil fuels, thereby mitigating the adverse impacts of climate change and air pollution.

History

Historically, Panama’s low-carbon electricity generation has been primarily driven by hydropower, with notable expansions over the decades. In the late 1970s and 1980s, steady increases in hydropower generation set the stage for Panama's current electricity composition. The 1990s and early 2000s witnessed fluctuations, with both declines and significant expansions, such as in 1999 and 2004, when hydropower markedly increased. More recently, in the 2010s, Panama saw considerable growth in hydropower, with significant surges in 2012 and 2015, culminating in a robust recovery in 2020 after a temporary decline in 2019. This historical trajectory showcases Panama's dynamic commitment to increasing low-carbon electricity generation, primarily through hydropower, a trend that continues to evolve with the integration of wind and solar sources.

Electricity Imports and Exports

Balance of Trade

Data Sources