Panama seen as solar energy market as power crisis builds

A RECENT report highlighting Panama as a potential growth market for solar energy market is highlighted by concerns of upcoming electricity supplies and levels of water in hydro dams with el niño threatening to shorten the current rainy season

The upside report cites electricity demand and favorable prices ranging from between 20 and 40 cents per kilowatt as most noteworthy.

It is expected that the solar market will add 700 megawatts of new capacity in 2014, representing 2 percent of world demand in the solar market until 2018. This rate requires developers to move with speed in order to enter new countries.
Panama stands out as a growth market because it has a dollarized economy with good interconnectivity.

There are intermodal transport options through the Panama Canal, and favorable energy prices typically ranging from between 20 cents and 40 cents per kilowatt hour. Greenwood Energy has recently completed the first utility-scale solar system in Panama and is now about to begin building a 44 megawatt project at the University of Panama.

Camilo Patrignani, CEO of Greenwood Energy said that “… Local partners are a key component of success. Local businesses have been developing projects for years, and have good portfolios with new projects, but lack the required access to capital and supply chains. For these companies partnering with a larger developer becomes a “win-win” situation for both parties. Local developers also tend to have the necessary connections to secure land, environmental permits and power purchase agreements, and have an understanding of large energy customers in an area in which an outsider could take years to develop governmental or business contacts. Knowledge of these local markets is essential for developers to access customers and do business,” reports Green TechMedia

Meanwhile, La Prensa Panama reports that the daily flow of water from the lakes of the country’s main hydroelectric dams shows that they are not reaching optimal levels for energy.

Panama electricity depends 60% on hydropower and 40% of the thermal energy produced from, diesel and coal fueled operations.  A wind farm located in Cocle  began generation in January but its contribution is less than 1% of the production system.

Experts advise following the example of Colombia[DY1] , which saves water for the difficult times ahead, but it is almost impossible to follow the recommendation when working with today reservoirs deficit.