Panama , Nicaragua , Honduras , Costa Rica , El Salvador and Guatemala

Panama driving Central America power demand

Bnamericas Published: Monday, August 01, 2022
Panama driving Central America power demand

Electricity use in Central America next year is forecast to grow 10.6% to 61,679GWh compared with 2021.

That is according to regional grid Siepac operator EOR’s update to its 2022-23 planning report, which highlights a demand jump of nearly 25% in Panama for 2023 based on the country’s expansion plan for the national interconnected system (PESIN).

The Panama guidance includes the addition of consumption from Mina Panamá.

"Panama’s economy recovered strongly in 2021 with the gradual easing of the temporary containment measures as health and sanitary conditions improved. Real output expanded by 15.3% in 2021, and the growth momentum is expected to continue into 2022, reinforced by the resumption of the construction of a new metro line and improving private investment," the IMF recently said.


Panama accounts for 22% of the 61,679GWh, followed by Guatemala (20.8%), Costa Rica and Honduras (each 19.3%), El Salvador (10.7%), and Nicaragua (7.95%).

The outlook adds that Central America’s installed capacity in June totaled 16,977MW, of which 68% corresponded to renewables and the balance to thermo.

EOR also points to the startup of the Energía del Pacífico’s 378MW Sonsonate gas to power project in El Salvador, and New Fortress Energy’s 300MW Central Puerto Sandino gas to power project in Nicaragua that is scheduled to enter service this year.

“The system has sufficient generation capacity to meet the demand requirements of the six countries in the region, in the same way it is estimated that the transmission network conveniently supports the flows in the regional transmission network,” the operator concludes.

The latest planning report, which also looks at regional dispatch, transmission expansions and pricing, is available here.

In a related development, EOR opened public consultation for a proposal to modify the regional power market regulation, related to generation and transmission planning.

Power generation projects due online through 2023 (Source: EOR planning report)

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Electric Power (Panama)

Get critical information about thousands of Electric Power projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: Electric Power (Panama)

Get critical information about thousands of Electric Power companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Panamá Power Holdings, Inc.  (PPH)
  • Founded in 2007, Panamá Power Holdings, Inc. (PPH) was formed to develop and operate power generation plants in Panama. Currently, the company owns four hydroelectric plants in ...