Panama Solar Tender: 2026 Energy Auction Schedule
Panama’s National Public Services Authority (ASEP) has announced a new five-year schedule for energy auctions, including a key solar tender set for 2026 to meet the country’s growing energy needs. According to the International Energy Agency (IEA), Panama’s electricity consumption reached 12.5 TWh in 2022—a 5.2% increase from the previous year—underscoring the urgency to expand capacity.
This new schedule was developed in consultation with key stakeholders, including the Ministry of Energy, the National Dispatch Centre (CND), and electricity distribution companies. The first auction under this collaborative plan is slated for 2025 and will include 20-year power purchase agreements (PPAs) for 200 MW of thermoelectric capacity and 200 MW of wind power. Bidding documents for the 2025 auction have already been released.
2026 Solar Projects for the Panama Solar Tender
The 2026 auction will focus specifically on solar projects, offering 20-year PPAs for 200 MW of capacity. This tender is crucial for expanding Panama’s renewable energy infrastructure, which builds upon the 780 MW of installed solar capacity reported by the IEA. Panama’s commitment is clear in its recent growth, with the country adding 100 MW of new solar capacity between 2022 and 2023.
This expansion aligns with a broader national strategy to increase reliance on renewables, reduce the country’s carbon footprint, and contribute to global sustainability efforts. The 2026 solar auction is a significant step toward these goals, addressing rising electricity demand while promoting sustainable energy. Recent investments, like the $70 million solar park in Santiago de Veraguas, underscore this commitment. You can learn more about this project and other Panama solar investments at PVKnowhow.
Panama’s Broader Renewable Energy Strategy
Panama’s focus on solar is part of a larger national shift toward renewable energy. The government is actively pursuing initiatives to reduce greenhouse gas emissions and achieve greater energy independence by investing in solar and other renewables. This approach is key to creating a more sustainable and resilient energy system.
The 2026 solar auction is expected to attract considerable interest from local and international investors, as the 20-year PPAs offer the long-term stability crucial for project development. International organizations like the IEA have recognized Panama’s progress, which could position the country as a model for the region. More information on Panama’s solar market can be found in the Panama Solar Panel Manufacturing Report.
Benefits of the Panama Solar Tender
Solar energy offers numerous advantages for Panama. As a clean power source, it reduces reliance on fossil fuels and lowers greenhouse gas emissions. The development also provides clear economic benefits by creating jobs and stimulating local economies. Further, Panama’s abundant sunshine makes it perfectly suited for solar projects, helping ensure a reliable and secure energy supply.
The long-term PPAs offered in the 2026 auction are designed to provide stable income for developers, encouraging further investment in the sector. This makes the auction a pivotal part of the country’s strategy to meet growing electricity demand while driving sustainable development. The continued expansion of solar capacity reinforces Panama’s role as a regional leader in renewable energy. For further insights into this growth, refer to this article on Panama’s solar capacity reaching 143.4 MW in 2024.
