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Latin America

Panama

With a power score of 1.91, Panama ranks number 55 among Emerging Markets and number 13 in the Latin America region

Power score

1.91/5

135135135

Score over time

2021 - 2024

18
2021
30
2022
60
2023
55
2024

Overview

Panama has a power score of 1.91, which puts it at rank 55 in the Emerging Markets power ranking. In comparison to 2023, Panama has improved in the power rankings by 5 places, from rank 60, to rank 55.

At 1.91, the power score of Panama is worse than than the regional average of 1.93 in the Latin America region and puts it at rank 13 in the region.

Regional comparison chart

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Panama

Power

Power policy

Panama implements policies in 4/9 power policy categories tracked by Climatescope, including Renewable energy target, Net metering, Import tax incentives, and VAT incentives.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Panama has increased from 193.03 USD/MWh in 2022 to 198.67 USD/MWh in 2023. Since 2017, the average electricity price in Panama has fluctuated between 169.13 USD/MWh (2020) and 198.67 USD/MWh (2023).

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Power market

The top amount of capacity installed in Panama in 2023 was in Large Hydro at 35.81%, down from 38.97% in 2022. The technology with the biggest increase in capacity installed in 2023 was Oil & Diesel at 26.49%, up from 23.93% in 2022.

Installed capacity (in MW)

2000200520102015202001K2K3K4K MW

Electricity generation (in GWh)

2000200520102015202005K10K15K GWh

The top amount of electricity generated in Panama in 2023 was in Large Hydro at 34.65%, down from 55.24% in 2022. The technology with the biggest increase in electricity generated in 2023 was Oil & Diesel at 26.64%, up from 8.49% in 2022.

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Investment in clean energy in Panama was around $115.49 million in 2023, an increase of Infinity% from 2022 ($ million). Between 2018 and 2023, the highest investment in clean energy was in 2018 at $212.88 million, while the lowest was in 2021 with $25.27 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

Yes

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

No

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly�increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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