Panama's electricity consumption in 2023 reveals a commendable reliance on low-carbon energy sources, contributing more than half of the country's electricity generation. A substantial portion, almost half, comes from hydropower, underlining Panama’s natural advantages in water resources. Wind and solar energy, at nearly 7% each, also support the country’s commitment to clean energy. On the other side, fossil fuels account for close to 38% of electricity usage, led by gas at around 22%. Coal's contribution is minimal at just over 3%. This mix indicates that while Panama is on a promising path with its clean energy initiatives, there is still room to reduce its fossil fuel dependency to further combat climate change and air pollution.
Is Electricity Growing in Panama?
Electricity consumption in Panama is growing, albeit at a measured pace. The latest data from 2023 shows an increase to approximately 2886 kWh per person, up by 100 compared to 2021's previous record. However, the low-carbon electricity generation per person has experienced a decline, dropping to 1783 kWh per person from 2184 kWh per person in 2021. This represents a concerning reduction and underscores the need for enhanced efforts to boost green energy output. The stagnation in low-carbon electricity generation is worrying, as it impedes Panama's overall progress towards reducing its carbon footprint and ensuring energy security for future demand.
Suggestions
To bolster its low-carbon electricity generation, Panama should consider the strategies employed by regions with successful sustainable energy frameworks. For instance, the solar initiatives of Lebanon (31%) and Nevada (29%) are notable, demonstrating the potential for solar power expansion. Additionally, wind energy plays a significant role in regions like Iowa (62%) and Denmark (57%), which Panama can emulate to diversify its clean energy portfolio. Nuclear power is a transformative technology that Panama should explore, inspired by countries like Slovakia and France, where nuclear contributes 64% and 69%, respectively, to their electricity mix. By investing in diverse low-carbon technologies, Panama can not only boost its electricity generation capacity but also achieve a more resilient and sustainable energy system.
History
The history of low-carbon electricity generation in Panama reveals a strong reliance on hydropower, with fluctuations mainly observed in recent decades. Through the late 20th century and early 21st century, hydropower saw notable growth, particularly during the years 1984, 1999, and 2012, where increases ranged from 0.6 to 1.3 TWh. However, significant declines particularly in the years 1998, 2001, 2003, and recently in 2023, which saw a reduction of 2 TWh, indicate variability in hydropower generation. Despite these fluctuations, hydropower remains a cornerstone of Panama's low-carbon strategy, and stabilizing and enhancing this sector, while diversifying into solar and nuclear, could provide a more consistent and sustainable energy future.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.