Panama schedules new solar auction for July 2026

Panama’s National Energy Secretariat has added a solar-focused tender to its new Annual Electricity Sector Tender Schedule, which outlines five procurement processes between 2025 and 2028 as part of the country’s long-term energy planning.

From pv magazine LatAm

The Panamanian government has published its first Annual Electricity Sector Bidding Schedule, a planning tool that sets a calendar of five bidding processes between 2025 and 2028. The schedule organizes the integration of new generation technologies into the system starting in 2029 and includes a dedicated bidding process for solar photovoltaic technology in 2026.

The announcement came during the approval session for process 01-25, the first auction to be executed under the new schedule. Officials also outlined strategic guidelines, including 1,420 MW equivalent (MWEq) of firm energy and 1,335 MW of new installed capacity during the period. Energy Secretary Juan Manuel Urriola said the planning is designed to maintain a balanced distribution of technologies and avoid generation clustering in specific time slots.

Officials said the decision to reserve a separate bidding process for solar projects reflects technical considerations specific to the electricity system. A government statement explained that the photovoltaic sector, “despite its low cost,” was excluded from the first call for proposals, which are set for October. It aims to contract new wind and hydroelectric plants for up to 20 years to avoid supply concentrations during daytime hours.

Although the technology is not included in the 01-25 auction, officials said conditions have been set for its later inclusion, with the goal of allocating clearly defined participation windows. The 2026 auction will allow exclusively solar-powered bids in a competitive context tailored to their operational and investment characteristics.

The schedule sets July 2028 as the supply start date for contracted photovoltaic energy. The government said this gives bidders time to complete all phases of the development cycle, including studies, financing, construction, and grid integration.

Panama installed 143.39 MW of new PV capacity in 2024, according to the National Public Services Authority (ASEP). By the end of December 2024, the country’s total installed solar capacity reached 695.55 MW, accounting for 13.79% of national electricity generation capacity.

Total installed generation capacity in 2024 stood at 5,045.09 MW, including 2,165.97 MW from thermal power (42.93%), 1,847.57 MW from hydropower (36.62%), 336 MW from wind (6.66%), and the new PV capacity.