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pv magazine interviewed Panamas Secretary of Energy, Juan Manuel Urriola. The official explained that the Central American country does not have individual goals for solar energy, but rather prioritizes comprehensive renewable energy coverage objectives. He also highlighted the opening of the electricity market to private investment and regulatory progress to integrate storage systems. He also emphasized the importance of state planning and predictability in bidding processes. Panamas Secretary of Energy, Juan Manuel Urriola, explained to pv magazine that there are no specific installed capacity targets for solar photovoltaic energy. Our energy goals are comprehensive and seek to meet demand safely, reliably, and competitively, he stated. Within this framework, the main objective is for at least 20% of national consumption to come from non-conventional renewable sources, such as solar and wind, by 2030. By 2050, the goal is a 70% share of renewable energy in the energy mix. One point worth highlighting is that the National Energy Secretariat is promoting private investment in new solar parks through regulatory instruments and tax benefits. Among these, Urriola highlighted Law 45 of 2004, which exempts tariffs on solar equipment and grants income tax benefits, and Law 37 of 2013, amended in 2023, which enables accelerated amortization and tax credits of up to 5% of the investment value. “We highly respect the contractual freedom that exists with investors who come to Panama through bidding processes, contracts, or concessions,” he added. “The rules of the game for them must be clear and they must be certain that the rule of law prevails.” Integration of renewables and auctions The secretary confirmed that there are plans to promote distributed photovoltaic systems, especially in rural areas or those with difficult grid access. These projects are part of the National Electrification Plan and include individual solutions and mini-grids to expand energy access in isolated communities, he noted. After noting that the growth of solar generation in Panama has been steady, Urriola explained that the integration of new projects has not required any extraordinary measures. The dynamic nature of the market has facilitated the progressive integration of solar energy, he stated. Grid expansion planning is the responsibility of the Electric Transmission Company (ETESA), which reviews the plan annually to ensure optimal integration of new generation. Panama is preparing new short- and long-term tenders for energy and capacity contracting. Studies are underway to determine the quota reserved for solar energy in future tenders. The predictability of the bidding schedule responds to the demands of investors and distribution companies, the secretary indicated. Energy storage and project connection Regarding energy storage, the Panamanian official assured that it will not be mandatory in the auctions, but bidders may include it if it is technically and economically feasible. Storage will contribute to improving service quality and providing complementary services in the transmission and distribution network, he explained. He also described how mini-grids currently exist in isolated areas that combine solar, thermal, and battery generation, which has enabled sustainable energy solutions for communities without grid access. After emphasizing that the Panamanian regulatory framework allows for the connection and operation of renewable energy projects without significant barriers, Urriola emphasized the importance of transparency and accountability in the sector. Improvements in the sector must be self-financed through long-term investments, he stressed. However, regarding technical or financial cooperation with organizations, he said: Panama seeks cooperation for projects that expand energy access in remote areas through individual solar systems and mini-grids. Finally, he noted that by 2024, solar and wind energy would cover 16% of national consumption. With sustained annual growth of 1.5%, the country is on track to reach 20% by 2030, he said, concluding: Planning and confidence in the sectors regulations will be crucial for the country to achieve its energy goals. |
