Germany and Spain, as well as other countries, have implemented laws that encourage the production of energy from renewable resources. Panama is taking its first steps towards alternative ‘green’ energy. Renewable energy benefits the environment and reduces carbon dioxide (CO2) emissions.

Most of Panama’s energy is produced from petroleum (85.4%), but future use of sources that do not aggressively impact the environment, “green power”, could provide an alternative. Among the main sources of renewable energy are wind, sun, marine power, geothermal energy and hydro power.

However, the possible introduction of renewable energy sources has been slowed by its high cost. Building a thermoelectric plant can cost 500 dollars per megawatt (MW), whereas a hydroelectric plant may cost between $1 million and $2 per 500 thousand kilowatt and $2 million per 500 thousand kilowatt. It should be noted that this hydro power generation, after construction, is much cheaper.

Water: The Source of Life

Presently, according to the National Authority of Public Services (ASEP), there are 15 hydroelectric projects  under construction. They will have an installed capacity of 597.27 MW and will be ready between the years 2010 and 2012.

According to Rafael De Gracia, Director of Electricity for AEP, “…the energy percentage must be increased, because Panama has sufficient water tributaries.” Eduardo Vallarino, President of the Panamanian Association of Renewable Energy Producers (APPER), states that “…there’s five times more water energy to be produced, than thermal energy.” However, it  should be noted that it will always be important to have some thermal production capacity to diversify energy sources.

Wind

It is feasible to generate energy from the sun or from wind. Solar panels now have a price of four dollars to produce one watt, but the international industry is making efforts to create products that will generate a watt for every dollar invested. Solar energy is encouraged in Panama through Law 45, which encourages domestic use. The law offers the elimination of taxes on imported equipment which produce up to 10 MW and a tax incentive of up to 25% in direct investment. Currently this type of generation is used in remote sites, to supply schools and health centers, a practice that could be copied elsewhere in the country to promote energy saving.

Already, a company holds a license to start construction of a wind farm. The project is developed by Enrilews S.A. in Coclé and will generate 225 MW. According to Vallarino, the force of the wind needed to generate power should be 10 meters per second (m / s) on an ongoing basis. In Panama, wind force is 25 m / s (that of a hurricane). The speed is strong enough to generate energy, but there is no evidence that gust that the wind can be relied upon. There are 27 companies registered in the ASEP to build wind farms.

A New World

A strong point in favor of investing in green energy is the economic incentives that can be generated. Mexico, Turkey and Egypt receive funds for clean technology of 50 thousand million dollars from the World Bank and regional development banks. There are also incentives for clean energy production, through the sale of carbon certificates.

Solar panels now have a price of four dollars to produce one watt, but the international industry is making efforts to create products of this type that generate a watt for every dollar invested. Solar energy is encouraged in Panama through Law 45, which allows domestic use and offers the elimination of taxes on imported equipment which produce up to 10 MW. A tax incentive of up to 25% in direct investment is also available .Currently this type of generation is used in remote sites, to supply schools and health centers, a practice that could be copied elsewhere in the country to promote energy saving.

Already, there is a company that holds the license to start construction of a wind powered farm. The project is developed by Enrilews S.A. in Coclé and will generate 225 MW. According to Vallarino, the force of the wind to generate power should be 10 meters per second (m / s) on an ongoing basis. In Panama, wind force is 25 m / s (that of a hurricane). The speed is strong enough to generate energy, but there is no evidence  the gusts of wind are sufficiently reliable. There are 27 companies registered in the ASEP to build wind farms.

A New World

A strong point in favor of generating green energy is the economic incentives that can be generated. Mexico, Turkey and Egypt receive funds for clean technology of 50 thousand million dollars from the World Bank and regional development banks. There are also incentives for clean energy production, through the sale of carbon certificates.

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