Wedoany.com Report-Jun 21, Panama is advancing its renewable energy goals, with a focus on expanding solar power, as outlined by Panamanian Energy Secretary Juan Manuel Urriola. He explained: “Our energy goals are comprehensive and aim to meet demand in a safe, reliable, and competitive manner.” The country targets at least 20% renewable energy, including solar and wind, in national consumption by 2030, with an ambition to reach 70% by 2050.

To encourage private investment in solar projects, Panama offers regulatory support and tax incentives. Urriola highlighted Law 45 of 2004, which exempts tariffs on solar equipment and provides income tax benefits, and Law 37 of 2013, updated in 2023, allowing accelerated depreciation and tax credits up to 5% of investment value. He emphasized: “We greatly respect the contractual freedom that exists with investors coming to Panama through tenders, contracts, or concessions. The rules of the game for them must be clear and with certainty that there is a rule of law.”

The National Energy Secretariat is promoting distributed solar systems, particularly in rural and remote areas. Urriola noted: “These projects are part of the National Electrification Plan and include individual solutions and minigrids to expand energy access in isolated communities.” Minigrids in these regions integrate solar, thermal generation, and battery storage to provide sustainable energy.

Panama’s grid expansion, managed by the Electric Transmission Company (ETESA), is reviewed annually to integrate new generation capacity effectively. The country is preparing short- and long-term tenders for energy procurement, with studies underway to allocate solar quotas in future auctions. Urriola stated: “The predictability in the tender calendar responds to the demands of investors and distribution companies.” While energy storage is not mandatory, it may be included if viable, as it enhances service quality and supports transmission networks.

Urriola emphasized Panama’s transparent regulatory framework, stating: “Improvements in the sector must be self-financed through long-term investments.” The country seeks international cooperation to expand solar systems and minigrids in remote areas. In 2024, Panama added 143.4 MW of solar capacity, bringing its total photovoltaic capacity to 695.55 MW. The nation’s total installed capacity reached 5,045.09 MW, with 42.93% from thermal power, 36.62% from hydropower, 6.66% from wind, and the remainder from solar.