Power generation option may open up for Panama municipalities

Panamanian lawmakers have begun to look at a bill to promote the creation of municipal renewable energy generators.

Legislator Zulay Rodríguez introduced the initiative to address electricity supply shortfalls and “exorbitant” rates, particularly in low-income areas.

The bill envisions public-private investment to carry out distributed generation programs and projects, including energy storage, which must be presented to public services regulator Asep.

Municipalities would be responsible for procurement and may access bank loans for financing with interest no higher than 3% of the cost of the work.

The bill is under review by the national assembly’s municipal affairs subcommittee (in photo) and is available here.

The committee plans to consult with the associations of municipalities and mayors, the national energy department and the public works ministry, among other stakeholders.

Also read Panama solar chamber forecasts US$2bn in distributed generation spend

Meanwhile, Asep reported the landing of a 22km power supply cable on the island of Colón in Bocas del Toro province that is now connected to the national grid.

Naturgy, which controls local distributors Edechi and Edemet, carried out the US$28mn 34.5kW project.