Panama has reactivated its structured power procurement scheme through the international public tender LPI ETESA 01-25, aimed at contracting long-term firm capacity and energy from hydroelectric and wind power projects.
The bid submission process, led by Empresa de Transmisión Eléctrica S.A. (ETESA), attracted seven generators, signaling renewed competition in the country’s renewable energy segment.
Six companies submitted offers for energy supply, while one bidder competed exclusively in the firm capacity category—an essential component to ensure system reliability amid hydrological variability and rising electricity demand.
The companies that submitted proposals under LPI ETESA 01-25 include:
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UEP III Panamá S.A.
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UK Parque Eólico La Colorada S.A.
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Hidronorth Corp.
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Los Naranjos Overseas S.A.
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Santa Cruz Wind S.A. (two proposals)
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Corporación de Energía del Istmo LTD, S.A.
The tender was launched following a formal recommendation from Panama’s National Energy Secretariat to secure supply obligations for distribution companies and reinforce the availability of firm capacity within the national power system.
In practical terms, the auction seeks to strengthen the reliability of Panama’s electricity mix by ensuring dispatchable renewable generation that can complement hydropower seasonality and support demand growth.
According to the Secretaría Nacional de Energía, contract awards are scheduled for April 24. ETESA will now evaluate the bids and issue a formal resolution naming the winning project(s).
The LPI ETESA 01-25 process was conducted under Law 43 of August 9, 2012, which amended Panama’s Electricity Law No. 6 of 1997 and established a specific framework for the procurement of capacity and energy from generators, self-generators and cogenerators—both domestic and international.
The bid opening ceremony was broadcast live via official channels, reinforcing transparency standards in a process that directly shapes the country’s power supply structure.
Beyond immediate contracting needs, this tender aligns with Panama’s broader medium-term energy planning strategy. Authorities recently extended the planning horizon to incorporate energy storage systems (ESS) as a strategic priority to complement renewable expansion and enhance operational reliability.
The combination of hydroelectric and wind power procurement, alongside future storage deployment, reflects a more diversified and resilient approach to grid integration and long-term supply security.
With seven competitors, a defined award timeline and a regulatory framework designed to ensure bankability, Panama is reinforcing its long-term contracting scheme to provide:
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Supply certainty for distribution companies
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Predictability for renewable energy investors
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Increased participation of wind and hydro in the generation mix
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Enhanced firm capacity to support demand growth
As Central American markets advance their renewable energy transition, structured auctions such as LPI ETESA 01-25 remain critical tools to balance investment in renewables with grid reliability and long-term energy security.
