Panama is one of the the fastest growing and most dynamic
economy in Latin America, with GDP growth of 6.0 percent in 2015
and estimated 6.3 percent in 2016. All of this growth has become a
challenge for the energy sector by demanding more electricity and
new energy sources.
Panama has traditionally relied mainly on hydroelectric
production to meet its energy needs. However, during the last few
years it has sought to change its energy mix due to the effect of
climate change on its water reservoirs. Today, Panama's energy
matrix is composed of hydropower (56.6%), thermal/oil (41.34%) and
other sources (2.06%) including wind and solar.
Panama expects that its energy demand will grow at an
average rate of 6% until 2030 according to a proposed
2016-30 expansion plan by state power transmission
company Etesa. The plan projects that annual electricity
use and load demand will grow around 6%, spurred by expansion of
the likes of the Panama Canal, new airport operations
