Panama launches energy auction

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From pv magazine Latam

The National Energy Secretariat of Panama has launched an energy auction aimed at contracting power for the 2025-30 period.

The Panamanian authorities will hold the procurement exercise before Dec. 10, allowing power producers to compete in two categories: contracting power and providing capacity, with contracts lasting up to 60 months.

Energy supply is set to begin on March 1, 2025, with a specific implementation deadline. The auction is open to renewable generators, including hydroelectric, wind, solar, and biomass projects.

The secretariat said that “the measure seeks to avoid increases in the cost of electricity that, until now, have been deferred over several semesters to soften their impact on consumers.”

National Secretary of Energy Juan Urriola stated that adjusting the contracted amounts to match actual demand ensures that only necessary energy is procured, which helps to protect consumers from potential price hikes due to over-purchasing.

In February 2024, Panama launched its first long-term tender for renewable energy in a decade. However, in July, the National Energy Secretariat suspended the tender, as it failed to meet transparency standards for investors or deliver better prices for Panamanians. This tender was initially introduced by the previous administration for the purchase of capacity and power.

The International Renewable Energy Agency (IRENA) has said that Panama had installed around 570 MW of cumulative PV capacity by the end of 2023. The country deployed about 70 MW of new PV capacity last year.

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