Panama and Colombia reactivate electrical interconnection project


News from Panama / Friday, December 20th, 2024

Panama and Colombia have decided to move forward in the electrical interconnection project, a strategic effort of 500 kilometers worth US$800 million that seeks to connect the Andean and Central American regions and for this, authorities from both countries met in the Panamanian Foreign Ministry.

During a meeting at the Ministry of Foreign Affairs of Panama, Panamanian Foreign Minister Javier Martínez-Acha stressed that this initiative will strengthen energy security, optimize the use of renewable resources and position Panama as a regional energy bridge. “We are committed to ensuring sustainable agreements that respect the environment and the communities involved,” he stressed.

The project, led by the Panamanian side ETESA and ISA of Colombia, contemplates a 500-kilometer transmission line with the capacity to transport 400 megawatts, using HVDC technology. Its objective is to exchange energy, reduce carbon emissions and increase regional energy resilience. It is estimated that the project will cost about US$800 million and will employ about 2,000 people.

Authorities such as the National Secretary of Energy of Panama, Juan Manuel Urriola, and the Minister of Mines and Energy of Colombia, Omar Andrés Camacho, emphasized the importance of this joint effort to integrate markets and advance the energy transition.

For his part, Jorge Jaramillo, project manager, reported that environmental studies have already been completed and key licenses have been obtained, but highlighted the need for social, technical and regulatory agreements to guarantee its sustainability.

International organizations, such as the IDB and CAF, reaffirmed their technical and financial support. Marcelino Madrigal, of the IDB, said that interconnection is key to strengthening economies and combating inequalities.

The meeting concluded with a mutual commitment to accelerate outstanding technical processes, prioritizing environmental care, with the aim of consolidating an integrated energy market that benefits both nations. The project is still in its first stages of studies and citizen consultations.

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