Panama solar development pipeline gaining traction


News from Panama / Tuesday, April 27th, 2021

Keira Development has submitted an EIS to Panama’s environment ministry for the 44MW Chumical I solar project.

Keira, controlled by local group Green Energy Developers, holds a provisional license granted by public services regulator Asep for the planned US$32mn photovoltaic plant.

The park would be built in the Urracá area of Santiago district, Veraguas province and connect to the national grid via a 34.5kV, 10.5km line at the Santiago substation. Construction is due to take 16 months.

Chumical I is the second largest solar project in early stage development after Fotovoltaica Sajalices’ proposed 100MW Camarones park.

Green Energy Developers, through special purpose companies GED Gersol Uno and GED Gersol Dos, also holds provisional licenses for the Llano Sánchez (9.99MW) and Salamanca (14MW) solar projects.

Year-to-date milestones from the solar front in Panama include the startup of the country’s largest plant using the renewable source: Avanzalia’s 120MW Penonomé park; the start of construction of Enel Green Power’s 30.88MW Madre Vieja project; and the start of permitting for the 39.8MW RPM Solar Caisán project.

In Central America power grid Siepac operator EOR’s 2021-22 planning report, seven photovoltaic plants for a combined 73.8MW are scheduled to enter service in Panama.

Panama’s 2020-30 energy transition plan highlights that renewable power will “dominate” the mix but adds that expanding their use requires a review of existing broader sector laws and regulations, such as those related to taxes, incentives and subsidies.

The World Energy Council says one restricting factor for renewables in Panama would be limited transmission access. The international organization also recommends strengthening the regulatory and institutional framework.

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