Panama has announced plans to launch a renewable tender, aiming to allocate 500 MW on renewable energy and storage. The scheme is planned to be organised by the Panamanian National Secretary of Energy and state-owned electricity transmission company, Empresa de Transmisión Eléctrica SA (ETESA), and it is expected to represent an investment of approximately PAB400m (US$400m). The bidders with the most competitive prices should sign long term offtake agreements with the government according to the type of project they propose: new or existing renewable projects supported with energy storage, energy from new or existing renewable projects, or firm power coupled with energy. The application is programmed to be published in February of 2024, and the auction is expected to open during the second quarter of the same year. Winners should deliver their existing renewable plants and new solar projects by 1 September 2026, while new wind or hydropower plants will have until January 2029 to become operational.
This auction comes as Panama’s first long-term exclusive tender for renewable energies held in the last 10 years, being the first country in Central America to also include storage in its auction scheme to give more flexibility to the National Electric System. The scheme expects to ensure the reduction of 17.5 MtCO2, representing 29% of Panama’s total Nationally Determined Contribution within the Paris Agreement framework.
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