Panama generates 75% of its power from renewables: Who are the companies behind it?

Panama has surpassed 75% of installed electricity capacity from renewable sources, according to updated figures from the Centro Nacional de Despacho. More than 40 private companies operate hydropower, solar PV and wind projects across the country, underscoring the central role of private investment in the national power mix.

Large-scale hydropower continues to anchor the system, providing year-round stability. Fortuna, with 300 MW installed and 276.5 MW operational, is the country’s largest plant, followed by Changuinola 1 with 189.7 MW in operation.

Other key assets include La Estrella, Los Valles, Monte Lirio, Estí, Pando and Gualaca, operated by international and regional players such as AES, Celsia, EISA and C.C. Together, these facilities ensure reliable baseload generation and system resilience.

In wind power, Toabré Wind Farm currently delivers 48.9 MW of 66 MW installed. It is complemented by projects led by AES—such as Nuevo Chagres 1—and several developments by UEPPME2, which together are expected to exceed 100 MW once fully operational.

Solar photovoltaic (PV) capacity is set for significant growth. While many plants already hold concessions, most have yet to inject power into the grid, pointing to a near-term expansion wave. Projects such as Caoba Solar, Estí Solar II, Penonomé Solar PV and Solar Pocrí alone account for dozens of megawatts ready for grid integration.

Installed capacity growth is being reinforced by a public planning strategy aimed at increasing market predictability. Panama is transitioning away from heavy reliance on the spot market towards long-term PPAs of up to 20 years, a move designed to reduce price volatility and improve bankability for new renewable energy projects.

From 2026 onwards, the country will launch four renewable energy auctions in successive phases. These will initially prioritise hydropower and wind, before gradually incorporating solar PV and energy storage solutions. The auctions form part of the National Energy Plan 2025–2050, which outlines a clear pathway towards power sector decarbonisation and grid integration of variable renewables.

In parallel, the public tender LPI ETESA 01-25, led by ETESA, has been postponed to March 2026. The tender documents were revised to improve technology segmentation and open the process to a broader range of developers, including variable renewable projects requiring differentiated contractual terms.

Private sector participation not only explains Panama’s current renewable leadership but also underpins its future outlook. With a robust portfolio of operating assets and a pipeline of projects awaiting execution, Panama is positioning itself as a regional benchmark in aligning energy policy with private investment.

By combining high installed renewable capacity, structured long-term planning and clear market rules, the country has already built an electricity matrix that is three-quarters renewable—and is preparing the ground to go even further.