Panama: Energie
From Handelswijzer Midden-Amerika van de Koninklijke Nederlandse Ambassade te Costa Rica
Features of the sector
In 2006, Panama's electricity generating capacity was divided between hydroelectric power stations, accounting for 55.3 per cent of installed capacity, with other power stations (which mainly use Bunker C fuel) accounting for the remaining 44.7 per cent. Total installed capacity for generating electricity was 1,541 MW in 2006, including self-powered plants connected to the Sistema Interconectado Nacional – SIN (National Interconnected Grid) (11.7 per cent) and independent systems (0.8 per cent). Total net generation of electricity in Panama was 5,817 GWh in 2006 while total sales amounted to 4,935 GWh.
Between 1998 and 2002 during partial privatization of the electricity sector, substantial investments were made in Panama's generating capacity, mostly in thermal power stations. This allowed the growth in total capacity to remain above the increase in maximum demand on the SIN, with aggregate rates of growth of 42.9 and 18.1 per cent, respectively, between 1998 and 2002. The rise in oil prices from 2001 onwards, however, discouraged investment in thermal power stations and between 2003 and 2006 the SIN's margin of reserve fell from 79 to 59 per cent. The authorities have pointed out that this level of reserve margin nonetheless suffices to ensure that the SIN remains reliable.
During the period 1998-1999, the State electricity company (IRHE) was partly privatized and its generating, transmission and distribution subsidiaries were separated into different companies. The Government sold 49 and 51 per cent of the shares of the hydroelectric and thermoelectric generating companies, respectively, to private investors. The State also owns the company EGESA, recently set up for the purpose of investing in thermoelectricity generation. Following the privatization and the new concessions granted by the State, Panama's electricity generating market now has five large generating companies (including the self-powered Panama Canal Authority) and some small generating companies. The State owns all the shares in ETESA, which has a de facto monopoly of electricity transmission; ETESA's concession contract gives it exclusive rights in the areas covered by the concession. The Government sold 51 per cent of the shares in the three companies which share Panama's distribution market on a geographical basis. There is foreign investment in generation and distribution.
Panama is interconnected with the Central American electricity schemes through Costa Rica. Following the sector's privatization (see legal framework), Panama went from being a net importer of electricity to a net exporter. In July 2006, the Sistema de Interconexión Eléctrica Centroamericano – SIEPAC (Central America Electrical Interconnection System) started to be expanded in order to create a wholesale electricity market to bring down the cost of energy and enhance the reliability of the Central American electricity grid. In early 2007, a project for electricity interconnection between Colombia and Panama was under consideration.
Electricity rates depend on the level of consumption and the voltage. High voltage consumers (voltage exceeding 115 kV) with monthly consumption exceeding 15 kW, supplied by a distributor, pay a rate (kWh) that is approximately one third of that paid by low voltage consumers (voltage not exceeding 600 V) consuming less than 15 kW monthly. In 2006, the average rate to the final consumer was B 0.15 kWh, one of the highest rates in Latin America; 57 per cent of this amount is attributable to generation, 8 per cent to transmission and 35 per cent to distribution. The authorities have indicated that the increase of around 50 per cent in electricity rates during the period 1999-2006 reflected the rise in international oil prices over the same period.
The production of hydroelectric plants, generating around 70% of Panama´s consumption, is volatile because of fluctuating rainfall. The start of the raining season was late this year and power was therefore temporarily rationed to prevent power cuts, hence the need to diversify the electricity production and/or build more dispersed small sized hydroelectric plants.
Bron: Organization of American State's Foreign Trade Information System (SICE)
