Panama's electricity consumption in 2023 shows a commendable reliance on low-carbon sources, with more than half of its electricity—approximately 62%—coming from these clean alternatives. Hydropower emerges as the most significant source, contributing nearly 48% of the total electricity. On the other hand, fossil fuels make up about 38% of Panama's electricity, with gas being the dominant fossil fuel at almost 22%. Wind and solar contribute almost 7% each to the electricity mix, highlighting Panama's efforts to incorporate varying clean energy sources for a sustainable future. Coal plays a minimal role, forming just over 3% of the consumption.
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 an upward trajectory, with an increase in per-person usage reaching 2,886 kWh in 2023, surpassing the 2021 figure by 100 kWh per person. This growth in total electricity consumption contrasts with a concerning decline in low-carbon electricity generation, which has decreased from 2,184 kWh per person in 2021 to 1,783 kWh in 2023, marking a drop of 401 kWh per person. The decrease in low-carbon generation poses challenges to Panama's sustainability goals. However, the overall growth in electricity use suggests an increasing demand, highlighting the critical need for scaling up clean electricity sources to align with future demands and the global shift towards greener energy.
Suggestions
To increase low-carbon electricity generation, Panama can draw inspiration from regions that have successfully harnessed solar and nuclear energy. The significant reliance on solar energy in Nevada and California, contributing 33% and 29% of their respective electricity, can serve as a model for Panama's solar expansion potential. Additionally, the strong presence of nuclear energy in countries like France, where it accounts for 70% of electricity generation, underscores the viability of nuclear as a stable and substantial power source. Panama can explore investments in solar and consider establishing nuclear capacity to complement its current energy mix, thereby reducing reliance on fossil fuels and enhancing energy security.
History
Historically, Panama has seen fluctuating trends in low-carbon electricity generation, predominantly dominated by hydropower. The late 1970s and 1980s witnessed modest increments of around 0.4 to 0.6 TWh in hydroelectricity. The 1990s were marked by variability, including a notable dip in 1998 followed by a recovery in 1999. The early 2000s mirrored this unpredictability, with significant drops and subsequent rebounds in hydro generation. The decade post-2010 heralded a more stable growth pattern, particularly in 2012 and 2015, both witnessing over 1 TWh increases. However, the abrupt fall in 2019 by almost 3 TWh, despite a surge in 2020, highlights an inconsistency that Panama must address to maintain and enhance its low-carbon output. As new technologies and investments loom on the horizon, Panama must strategically leverage its natural resources and look towards global exemplars for inspiration.
