The exhaustion of the potential of hydroelectricity and social resistance to its use, is bringing to the forefront alternative energy as a solution to meeting electricity demand which is growing at 5% a year.

Energy imports from Central America and Colombia, through the interconnection network and the possibility of building more thermal power plants and renewable options are choices the country has to meet future electricity demand, not only because of social opposition to hydroelectric projects, but also because of the lack of rivers with enough channels to operate a dam.

Isaac Castillo, Undersecretary of Energy, told Capital.com.pa that “… ‘in light of this situation, the new tenders being held by the Department of Energy are aimed at diversifying the country’s energy matrix by incorporating thermal plants based on gas, coal, wind and sun. ‘”

“… Castillo also said that Empresa de Transmisión Eléctrica, S.A. (Etesa) has brought forward several projects to expand and refurbish the power transmission network (including the construction of transmission lines 3 and 4 ), which will not only facilitate the exchange of energy between Panama and Central America, which is now quite marginal, but which will also allows the possibility of importing energy from Colombia, as the current administration has resumed negotiations for the construction of an electrical interconnection with Colombia. “