Panama’s National Secretariat of Energy launched its first renewable energy tender in 10 years in February, marking the first auction in Central America to include battery storage systems. The tender was designed to allocate 500 MW of capacity and 20-year power purchase agreements (PPAs) with electricity distribution companies.

However, Secretaría Nacional de Energía (SNE) suspended the tender last week, concluding that it “did not meet the minimum requirements to guarantee transparency to investors, nor improvements in prices for Panamanians.”

“After an exhaustive review of the contracting scheme, it was determined that the parameters presented by the last administration did not guarantee the clarity and transparency necessary for effective competition,” said SNE. “The large volume of comments and clarifications received during the consultation period emphasized the need to make substantial adjustments to the tender requirements.”

SNE will now launch a review of the energy-contracting scheme based on current regulations. It said that if the review calls for changes to current legislation, it will make adjustments after extensive consultation with the electricity sector.

According to the latest statistics from the International Renewable Energy Agency (IRENA), Panama had around 570 MW of installed PV capacity at the end of 2023. It installed around 40 MW of new solar last year.