Congress approves renewable energy bill

Panama's congress has approved a bill that provides incentives to promote small-scale hydro generation and other renewable energy generation sources, local paper El Panamá América reported. The legislation will provide incentives to companies that develop and construct renewable energy source projects, including small-scale hydro, geothermal and wind projects. Such incentives include exemption from transmission payments, tax breaks for equipment purchases, and guaranteed returns on investment, the proposal's creator and PRD party member, Freidi Torres, said. The legislation is aimed at lowering power prices and providing jobs, Torres said. Currently, thermoelectric generation, which is highly susceptible to international oil price fluctuations, accounts for approximately 40% of Panama's power while the remaining 60% is derived from hydro plants. However, studies indicate that Panama only uses 18% of its hydro potential. There are at least five small hydro projects planned through 2017 that will add an additional 401MW to the grid. The projects include the 30MW Bonyic, 51MW Bajo de Mina, 158MW Chan 75, 30MW Santa María and the 132MW Carbón projects, La Prensa reported. Panama has 1,555MW of installed capacity that covers the 900MW daily demand, serving 5,253 clients, La Prensa reported.