Panama Solar Tender: 2026 Energy Auction Schedule
Panama’s National Public Services Authority (ASEP) has announced a new schedule for energy auctions, outlining tenders for the next five years. A key component is a solar auction set for 2026, designed to support 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, highlighting the urgency of expanding capacity. This new schedule follows consultations with key stakeholders, including the Ministry of Energy, the National Dispatch Centre (CND), and electricity distribution companies, reflecting a collaborative approach to ensuring a stable and diversified electricity supply. The first auction under this 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 this 2025 auction have already been released.
2026 Solar Projects for the Panama Solar Tender
The 2026 auction will focus on solar projects, offering 20-year PPAs for 200 MW of capacity. This auction is crucial for expanding Panama’s renewable energy infrastructure, building upon the existing 780 MW of installed solar capacity reported by the IEA. Panama’s commitment to renewable energy is evident in its recent growth, adding 100 MW of new solar capacity between 2022 and 2023. This expansion aligns with the broader national strategy to increase reliance on renewable sources, reduce its carbon footprint, and contribute to global sustainability efforts. The 2026 solar auction represents a significant step towards these goals, addressing rising electricity demand while promoting sustainable energy development. Recent investments, such as the $70 million solar park in Santiago de Veraguas, further demonstrate this commitment. You can learn more about this project and other Panama solar investments at PVKnowhow.
Panama’s Renewable Energy Future and the Panama Solar Tender
Panama’s focus on solar is part of a larger national trend towards renewable energy. The government is actively pursuing initiatives to reduce greenhouse gas emissions and achieve greater energy independence. Investing in solar and other renewable sources is key to creating a more sustainable and resilient energy system for the future. The 2026 solar auction is expected to attract considerable interest from both international and local investors. The 20-year PPAs offer long-term stability, making these projects particularly appealing for developers. International organizations like the IEA and other global energy agencies have recognized Panama’s progress in renewable energy development, potentially positioning 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 and renewable power source, it reduces reliance on fossil fuels and lowers greenhouse gas emissions, contributing to global climate change mitigation efforts. Furthermore, solar energy development provides economic benefits by creating jobs and stimulating local economies. The long-term PPAs offered in the 2026 auction will provide stable income for solar developers, encouraging further investment in the sector. Panama’s abundant sunshine makes it well-suited for solar projects, ensuring a reliable and secure energy supply for the future. Panama’s 2026 solar auction is a pivotal component of the country’s renewable energy strategy. With 200 MW of capacity to be awarded through 20-year PPAs, the auction will support Panama’s growing electricity demand while driving sustainable development. Panama’s continued expansion of its solar capacity reinforces its role as a leader in renewable energy growth in the region. For further insights into Panama’s solar capacity growth, refer to this article on Panama’s solar capacity reaching 143.4 MW in 2024.
