The rapid growth of solar self-consumption is beginning to reshape the debate on electricity planning in Panama . In this context, the Panamanian Chamber of Solar Energy (CAPES) told Energía Estratégica that upcoming procurement processes should incorporate new variables, such as net demand, distributed generation, and energy storage, to address the ongoing transformation of the electricity system.
The sector's stance came after Panama awarded 2.26 TWh in the ETESA 01-25 tender at an average price of USD 23.86/MWh , a result that solidified the competitiveness of renewable technologies. However, for CAPES, the challenge is no longer solely about adding new generation capacity, but about adapting planning to a system where an increasing number of users are producing some of the electricity they consume.
"We recognize ETESA's efforts to update its planning and demand models. However, we believe that the rapid growth of distributed generation represents a challenge for all electrical system operators worldwide," stated Jesús González , Executive Director of the Panamanian Chamber of Solar Energy (CAPES) .
Panama has already surpassed 196 MW of self-consumption distributed across 7,195 systems , driven by rising electricity rates, reduced photovoltaic technology costs, access to financing, and greater market confidence. The Chamber projects that this expansion will continue at double-digit rates over the next few years, fueled by energy storage, the commercial and industrial sectors, and the progress of electrification.
González warned that the growth of distributed generation is progressing at a faster pace than predicted just five years ago, so planning methodologies should incorporate more dynamic scenarios that consider self-consumption, energy efficiency, storage, and electric mobility.
"Modern planning must consider not only gross demand, but also the evolution of net demand and changes in consumption patterns resulting from distributed energy resources," he stated.
According to the executive, incorporating these variables will allow future tenders to better reflect the reality of the electricity market and consider a system where distributed generation is gaining increasing prominence.
Regulatory limits and storage, the next challenges
The Chamber also deemed it appropriate to review the regulatory limits on the penetration of distributed generation. According to González, these limits were designed when self-consumption had a much smaller share and the monitoring, control, and storage tools available were considerably more limited.
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"The caps were designed in a context where distributed generation had a much smaller share and where monitoring, control and storage capabilities were more limited than they are today," he noted.
CAPES maintains that international experience demonstrates that investments in network digitization, advanced management systems and storage allow for the integration of significantly higher percentages of distributed generation without compromising the reliability of the electrical system.
"The goal should be to ensure the stability of the grid, but preventing outdated regulatory limits from becoming a barrier to new investments, innovation and energy competitiveness," González warned.
Another change being promoted by the sector focuses on the design of future tenders. According to the Chamber, the electricity market is evolving towards a more decentralized model, where, in addition to the energy generated, the services provided by distributed generation and storage systems must also be valued.
In that regard, González suggested that the contracting processes could recognize benefits such as reduced transmission and distribution losses, deferred infrastructure investments, greater system resilience, and the ability to manage demand during critical hours.
"Future tenders could incorporate mechanisms that recognize the benefits provided by distributed generation and storage systems," he suggested.
Among these attributes, CAPES highlighted the reduction of losses in transmission and distribution, the deferral of infrastructure investments, the improvement of system resilience, and demand management during critical hours.
"Batteries will play a fundamental role in the integration of renewable energies and in the country's energy security," González concluded.
The Chamber estimates that the Panamanian self-consumption market will continue to grow at double-digit rates, driven by the incorporation of batteries, greater participation from the commercial and industrial sectors, and the progress of electrification. In this scenario, it believes that electrical system planning and future tenders must evolve at the same pace as the market .