Panama power roadmap envisions the addition of 2.63GW

Installed power generation capacity in Panama may increase by 2,634MW over the next 10 years, the bulk of which would come from natural gas plants.

That is according to the reference scenario of state power transmission company Etesa’s proposed 2020-34 expansion plan for the national interconnected system (PESIN). 

The new gas-fired generation would come from Sinolam Smarter Energy LNG Power’s 458MW Gas To Power Panamá project and Generadora de Gatún’s 670MW Gatún project. 

The balance of the potential capacity increase would come from solar (622MW), wind (511MW) and hydro (373MW), while 414MW of bunker and 100MW of diesel capacity would be retired. 

BNamericas Project Profiles team is tracking over 20 hydro, solar and wind projects in the early stage and under construction in the country for a combined US$3.7bn. 

For recent developments from the generation front in Panama, click on the following links: 

Panama LNG, 670MW projects secure environmental nod

German renewable energy group begins permitting for Panama project

Panama awards PPAs, grants 250MW solar license

Panama shutters last coal-fired power plant

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TRANSMISSION

PESIN’s electricity dispatch component highlights the need to build the fourth main transmission line which the expansion plan sees online in 2025.

The line would eliminate transmission restrictions and forced generation, allow the penetration of non-conventional renewable energies, and provide operational flexibility during programmed maintenance of lines one, two and three, among other benefits, according to the roadmap.

The 330km, 500kV Chiriquí Grande-Panamá III link will cross the provinces of Bocas del Toro, Veraguas, Colón, Coclé, and Panamá, as well as the Ngäbe Buglé indigenous reserve, and initially operate at 230kV. Estimated investment reaches US$500mn.

The government plans to offer the double circuit, 900-tower project under a public-private partnership.

In a related note, Etesa reported that it signed an agreement with the Ñö Kribo (Ngäbe-Buglé indigenous reserve) to establish collective social compensation measures related to the fourth line’s permanent easement.

Also Read Environmental impact study call for Panama’s 4th transmission line declared void

Source: Etesa

DEMAND

Meanwhile, annual electricity consumption growth in 2020-34 is forecast to range between 1.48-5.69%, and 2.16-4.85% for maximum demand.

Source: PESIN

Source: PESIN

Panama's public services regulator Asep will accept comment on PESIN, which also looks at trade with Central America and Colombia, from November 22 through December 21. Information, including the expansion plan, is available here.