In 2023, Panama's electricity consumption revealed a strong reliance on low-carbon energy sources, with over 60% of its electricity generated from clean sources. Hydropower dominated, contributing nearly half of the total electricity supply, highlighting its critical role in Panama's energy landscape. Other sources of low-carbon energy, such as wind and solar, provided a small yet noticeable share, each generating close to 7%. In contrast, fossil energy remained a significant part of the energy mix, accounting for nearly 40% of electricity production. Gas made up the largest portion within fossil fuels, while coal played a minor role with just under 4%. The balance between low-carbon and fossil energy underlines Panama's journey towards a cleaner energy future.
Data sources used on this page include Ember, IEA and World Bank. More about data sources →
Is Electricity Growing in Panama?
The growth in electricity consumption in Panama is evident, with the latest figures showing a slight increase to 2886 kWh per person, surpassing the previous 2021 record of 2787 kWh per person. This rise suggests a gradual but steady demand for electricity, likely driven by factors such as population growth and economic development. However, the generation of low-carbon electricity has seen a concerning decline, with the current output at 1783 kWh per person, down from a historical high of 2184 kWh per person in 2021. This drop of 401 kWh per person represents a worrying trend and indicates challenges that need to be addressed to ensure sustainable electricity growth in Panama.
Suggestions
Panama can enhance its low-carbon electricity generation by examining successful strategies employed in other regions. For example, incorporating solar energy as seen in Nevada, where solar contributes a significant 34% to their energy mix, would be beneficial. Additionally, Panama might explore the potential of nuclear energy, learning from regions like France, where nuclear power provides a clean and steady energy supply covering 67% of their electricity needs. Even countries like South Carolina in the U.S. successfully leverage nuclear for 54% of their power. By adopting these technologies, Panama can diversify its energy portfolio, reduce fossil fuel reliance, and secure a cleaner energy future.
History
The history of low-carbon electricity in Panama shows a journey of ups and downs, mainly propelled by hydropower. In the late 20th century, from the late 1970s to the mid-1990s, hydropower experienced a series of incremental increases with a few occasional declines. Significant growth occurred in the early 2000s and the 2010s, with notable expansions in 2004 and 2012. However, the end of the 2010s and early 2020s saw sharp declines, like the 2019 drop of 2.8 TWh and the recent 2023 decrease of 2 TWh, which highlight underlying vulnerabilities and the need for strategic improvements. To overcome these challenges and secure its energy future, Panama should focus on expanding its low-carbon capabilities through diversified clean energy investments.
