In 2023, Panama's electricity consumption is heavily influenced by clean energy sources, with more than half, around 62%, derived from low-carbon options. Hydropower is the major contributor, representing close to half of the total electricity at approximately 48%. Wind and solar together account for nearly 14%, indicating a promising movement towards diverse clean energy solutions. Meanwhile, fossil-fired electricity, predominantly generated from gas, occupies about 38% of the electricity mix. The reliance on gas, coal, and other fossil fuels presents opportunities for Panama to transition further towards cleaner alternatives, thereby reducing the adverse effects of climate change and air pollution.
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 on the rise, with the latest figures in 2023 reaching 2886 kWh per person, surpassing the previous peak in 2021 by 100 kWh per person. However, it's concerning that the generation of low-carbon electricity has decreased, as observed from the 401 kWh per person drop compared to 2021. While overall electricity demand continues to grow, reducing the capacity of low-carbon sources could hinder Panama's progress in achieving a sustainable energy future. To meet increasing demands and maintain environmental commitments, Panama must amplify its focus on clean energy technology and resources.
Suggestions
Panama could enhance its low-carbon electricity generation by adopting strategies from regions that have successfully utilized solar and nuclear power. Countries like North Macedonia and states like Nevada have leveraged substantial solar energy contributions, with solar accounting for as much as 49% and 34% of their total electricity respectively. Meanwhile, nations such as France and Slovakia have demonstrated significant achievements in nuclear energy, with nuclear providing over 60% of their electricity needs. Panama could benefit by incorporating a mix of solar and nuclear energy, accelerating sustainable energy development and reducing dependence on fossil fuels.
History
Historically, Panama's electricity landscape has seen fluctuating contributions from low-carbon sources, primarily hydropower. From the late 1970s to the mid-1990s, hydropower showed a general growth trend with several positive increments. However, notable declines occurred in 1998 and early 2000s, slowing progression. Since a significant boost in 2012, the pattern has been sporadic, with growth often interrupted by declines, like the significant dip in 2019. Although there were noteworthy increases in 2020 and 2021, recent data from 2023 indicates a contraction in hydropower by 2 TWh, underscoring the need for consistent investment in diverse clean energy sources to stabilize and grow Panama’s sustainable electricity infrastructure.
