The public tender LPI ETESA 01-25, launched by Panama"s Secretaría Nacional de Energía de Panamá, has been rescheduled for 3 March 2026.
The postponement comes alongside changes to the technical tender documents, following feedback from private sector stakeholders particularly regarding the structure of the proposed contracts.
Originally, the auction design included only a demand-curve contract for difference (CfD).
This mechanism posed limitations for certain renewable technologies, especially wind power, which is characterised by variable generation profiles.
In response, the authorities introduced a second option: a generation-curve contract for difference, broadening the range of eligible solutions and allowing developers to better match contractual structures to the technical characteristics of each project.
Against this backdrop, the Panamanian chapter of the World Energy Council Panamá underlined the importance of well-structured and predictable procurement processes.
Speaking to the media, its president, Héctor M.
Cotes, emphasised:
"A tender schedule such as the one being proposed is beneficial for both current and potential investors, as it provides predictability and encourages broader participation.
This, in turn, stimulates competition and should ultimately translate into better prices.
Experience from previous auctions shows that clear rules and adequate preparation timelines tend to result in stronger participation and more intense competition.
These factors influence not only final electricity prices, but also the technical quality of awarded projects and the legal certainty required for long-term investment decisions.
From an institutional perspective, the tender timetable is aligned with the country"s Plan Energético Nacional 2050, which sets sustained growth in renewable energy as a core strategic objective.
The current call forms part of that roadmap, offering 20-year power purchase agreements (PPAs) aimed at adding firm and renewable capacity to Panama"s power system.
Long-term contracts under stable regulatory frameworks allow investors to structure financing under more competitive conditions, reducing perceptions of regulatory risk.
This predictability is particularly relevant for developers and investors assessing multiple markets across Latin America and beyond.
Moreover, a clear auction pipeline enables both local and international companies to anticipate strategic moves, form partnerships and build more resilient project portfolios.
In the absence of such conditions, tenders often face low participation levels or result in outcomes that fail to reflect the technological and financial realities of the energy sector.
Panama aims to consolidate its position as an attractive destination for investment in renewables, including solar PV and wind power.
Achieving this goal requires not only political commitment, but also robust regulatory frameworks and auction processes that respond to market needs.
For organisations such as WEC Panama, it is therefore essential that upcoming tenders maintain the current approach and continue to evolve through technical dialogue between the public and private sectors.
The LPI ETESA 01-25 tender is expected to set an important benchmark for future procurement rounds.
Its outcome will send a strong signal to the market regarding the country"s direction in the energy transition.
Expectations are that, following this redesign, Panama will be able to award competitive long-term contracts that expand installed capacity with clean and sustainable energy technologies.