What Happened
Panama’s tender for existing power plants closed this Thursday with 71 offers submitted, a turnout that authorities said exceeded expectations. The process, managed by the Empresa de Transmisión Eléctrica (ETESA) with support from the Secretaría Nacional de Energía, seeks to cover both capacity and energy needs across the national grid.
Details of the Tender
The bidding document was structured in three main blocks. The first targeted procurement of firm capacity with an option to purchase energy, with staggered requirements ranging from 150 megawatts in the 2026–2029 window up to 200 megawatts for 2029–2038. This block was aimed at thermal plants operating on diesel or bunker fuel, which must undertake technological reconversion within a maximum of 36 months.
The second block covered firm capacity for hydroelectric plants and thermal plants running on natural gas. The third block focused on energy supply from renewable sources, including hydroelectric, wind and solar generation.
Why It Matters
Authorities said the tender’s objectives are to secure short- and long-term supply while reducing tariff volatility and mitigating risks for consumers. High participation was presented as a signal of market interest and preparedness among generators, which officials said helps create conditions for tariff stabilization.
“Eso da certidumbre, permite a los agentes prepararse y participar, y ese resultado se ve en la cantidad de ofertas recibidas. Es también en procesos como este donde se crean condiciones para estabilizar la tarifa y para que el consumidor final pueda ver beneficios en el mediano plazo,” said Rodrigo Rodríguez, national secretary of energy.
Environmental and System Flexibility Goals
One notable element of the tender is the inclusion of reconversion commitments for thermal plants. Authorities said these commitments are intended to improve operational efficiency and reduce environmental impact, while also strengthening the national system’s flexibility to respond to demand fluctuations and variability in generation availability.
Next Steps
With the submission window now closed, the process moves into an evaluation phase in which the winning proposals will be determined. Officials did not announce a timeline for decision-making in the published report.