Panama entered today the decisive phase of the LPI ETESA 01-26 electricity tender , with market expectations focused on the final award after the publication of preliminary results that anticipated a clear leadership of renewable energies and highly competitive prices in the energy segment .
The process, driven by ETESA, received 74 proposals, of which 70 were reportedly accepted , with the participation of 42 generating companies , confirming the sector's strong interest in long-term contracts extending until 2036-2038. The final decision, expected today, will determine the course of investments and the evolution of Panama's electricity grid .
One of the key indicators of the process was that over 90% of the bids were for renewable technologies , predominantly hydroelectric, followed by solar and, to a lesser extent, wind and hybrid. In terms of capacity, these initiatives reached a maximum theoretical potential of approximately 1441 MW , reflecting the magnitude of investor interest, even though they did not represent simultaneous generation.
Within this context, Line 3 (Energy Only), exclusively for renewable sources , garnered the most market attention. There, the preliminary contracting level reached approximately 79% , solidifying this segment as the cornerstone of the tender and signaling the growing importance of clean energy in the system.
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Preliminary results showed a highly competitive price range, from $0.062 to $0.077 USD/kWh , with a downward trend driven by competition among bidders. Among the lowest bids were those from Mercurio Solar, SA at $0.06200 USD/kWh, Capira Energy Park, SA at $0.06332 USD/kWh, and Brillo Solar, SA at $0.06403 USD/kWh , demonstrating the competitiveness of the solar segment.
Meanwhile, hydroelectric technology led by a wide margin in the number of preliminary awards , with companies such as Hydrocaisan, Las Perlas Norte and Sur, Istmus Hydro Power, and Desarrollo Hidroeléctrico, many of which secured multiple blocks at varying prices , mostly ranging between USD 0.069 and 0.075/kWh . Other notable players included AES Panamá, Alternegy, and Bontex , which solidified the presence of major players alongside specialized developers.
This level of participation and competition was positively valued by the sector. The president of World Energy Council Panama, Héctor M. Cotes, reportedly told Energía Estratégica He stated that " it can be considered successful due to its broad participation, " while also emphasizing that "there is and remains a strong interest from the private sector to continue investing in energy." Regarding prices, he added that "the price cap scheme presented by the authorities limits the proposals to some extent," although the number of bidders demonstrated the viability of the process.
The LPI 01-26 tender was part of an electricity expansion strategy exceeding 3,100 MW by 2029 , aimed at ensuring reliability, diversification, and tariff stability. Within this framework, Line 3 anticipated a growing demand, starting at 150 MW in 2026 and reaching up to 500 MW by the end of the period , reinforcing the structural role of renewable energy.
Furthermore, the process incorporated relevant signals for the energy transition, such as the conversion of thermal power plants to gas in other segments and the optimization of the allocation through advanced mathematical tools, which reinforced the transparency of the scheme.
Given this scenario, the final award expected today will be crucial in confirming which projects will move forward and under what conditions , in a context where future demand could accelerate. In this regard, Cotes warned that “should disruptive events occur in demand, additional energy and power could be required in the coming years.”
Finally, the executive concluded that “in the next 5 to 10 years, Panama must have a robust and diversified energy matrix that goes hand in hand with the country's economic growth,” summarizing the sector's expectation for a tender that has already shown clear signs of transformation.