Panama’s National Energy Secretariat (Secretaría Nacional de Energía de Panamá) has postponed the public tender LPI ETESA 01-25, aimed at new wind and hydropower generation projects, setting 3 March 2026 as the new deadline for bid submissions.
The decision, formalised through Resolution MIPRE-2026-0000072, follows requests from market participants who flagged constraints in the original contractual design that could hinder project bankability.
Alongside the revised timetable, the government introduced technical adjustments to the contracting framework. Until now, bids could only be submitted under a demand curve difference contract, a structure that—according to ETESA—made it difficult for variable generation technologies, such as wind power, to secure financing.
To address this, the Secretariat approved an additional option: a generation curve difference contract. This alternative allows developers to submit bids better aligned with their technical and operational profiles, particularly for non-dispatchable renewable energy technologies.
As a result, the resolution instructs ETESA to update the bidding documents accordingly and submit the revised version to the Autoridad Nacional de los Servicios Públicos (ASEP) by 8 January.
Revised conditions and market expectations
The LPI ETESA 01-25 auction is part of Panama’s long-term procurement process for firm capacity and energy from new wind and hydropower plants. The tender supports the country’s energy transition strategy, focused on emissions reduction, grid diversification, and greater system resilience.
Under the original scheme, private-sector players raised concerns about reduced competitiveness. By forcing bidders to follow a rigid demand curve, the model effectively excluded projects unable to guarantee constant output—even if they delivered clean, complementary energy to the grid.
With the extended deadline, interested companies now have additional time to reassess the terms, redesign their proposals and compete on a more level playing field. Market sources expect the technical flexibility to widen participation and improve the auction’s economic outcomes.
Industry representatives also stressed the importance of avoiding further delays. “A sound energy policy is one that safeguards public wellbeing and health at affordable prices,” sources told Energía Estratégica.
They added that the tender award is expected to help continue the decarbonisation of Panama’s energy mix.
If the revised schedule is upheld, the award could take place in the first half of the year. Progress on the tender is seen as critical to unlocking investment in new wind farms and hydropower plants, meeting future electricity demand with renewable energy and strengthening the reliability of Panama’s power system.
