Panama 's Electric Transmission Company (ETESA) awarded more than 15 solar and wind projects at a consolidated price of 33.7 USD/MW and a general average of 34.4 USD/MWh in the LPI ETESA 01-26 tender.
The figure takes on greater significance considering that the OV's reference offer for this segment had been set at 47.8 USD/MWh , which demonstrates a much greater competitive pressure than initially projected by the Panamanian authorities.
In this way, the final award not only confirmed the strong renewable predominance within the tender, but also a new tariff floor for long-term contracts in Panama, particularly driven by the aggressiveness of the solar bids and the high hydroelectric participation.
Even in the previous stage, there was talk of offers starting at approximately 62 USD/MWh , while the final resolution showed contracts awarded even below 30 USD/MWh.
What was the process like?
It is worth remembering that the call for bids brought together 74 proposals from 42 generating companies and ended up consolidating one of the most competitive tenders in recent years in Central America.
During the preliminary stage, a highly competitive scenario and a strong renewable energy presence were already anticipated, something that was ultimately confirmed in the final resolution. Within Line 3, ETESA awarded more than 2.26 million MWh of capacity to solar and hydroelectric projects.
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The lowest bid awarded was from AES Panama , which secured contracts at 29.7 USD/MWh , further solidifying its position as one of the most important players in the process.
Solar projects also stood out, such as Mercurio Solar , which was awarded 413,019 MWh at 32.7 USD/MWh ; Capira Energy Park , with 402,055 MWh at 33.5 USD/MWh ; and Brillo Solar , with 394,091 MWh awarded at 33.7 USD/MWh .
Meanwhile, hydroelectric technology once again demonstrated a strong position in terms of awarded volume. Companies such as Hydrocaisan , Las Perlas Norte , Las Perlas Sur , Istmus Hydro Power , Bontex , and Alternegy secured multiple blocks within this sector. Hydrocaisan, for example, accumulated awards exceeding 560 GWh across various contracts, while Istmus Hydro Power approached 328 GWh in awarded contracts.
Las Perlas Norte and Las Perlas Sur were also among the top hydroelectric awardees, jointly exceeding 490 GWh granted, and the weight of AES Panama was also shown in other segments of the auction.
The results ultimately reinforce a significant signal for the Panamanian and regional electricity market. The combination of strong competition, massive participation of renewables, and prices well below benchmark values demonstrates the increasing maturity of clean technologies in long-term contracting processes.
FES's next stops
The Future Energy Summit tour will continue with FES Guatemala on May 14 and FES Mexico on May 19, where key players from the public and private sectors will address the challenges and opportunities linked to the expansion of the energy system, new investment schemes and the execution of strategic projects.
To access the full FES 2026 tour schedule, learn more about it and be part of the meetings, the FES digital platform is available, while all events will have a live broadcast through the official Future Energy Summit YouTube channel.
For inquiries and more information, please contact info@futurenergysummit.com