Approved long-term energy tender; implying?

The The National Secretariat for Energy recommends according to Electrical Transmission Company, SA (Etesa) prepares tender documentation for long-term procurement of energy, power and supporting energy.

This is the first long-term competition exclusively for renewable energy sources to be implemented in Panama in the last 10 years and the first in the Central American region to include battery storage systems, to give greater flexibility National electrical system.

The Resolution no. MIPRE-2024-0001384 On January 15, 2024, it recommends the adoption of measures for power and/or energy contracting in order to guarantee the long-term supply of electricity to end customers of electricity distribution companies.

The measure includes improving electricity prices, creating green jobs, attracting new investment in infrastructure, reducing dependence on fossil fuels, caring for the environment and contributing to economic revival, he said. Presidency of the Republic through a statement.

This tender of 500 MW capacity guarantees the long-term supply of electricity to users served by electricity distribution companies, through new or existing power plants based on renewable energy sources, which represents an investment of approximately 400 million balbos.

For an expert in Regulation and energy markets, Cristobal Samudio, These types of tenders succeed in attracting new generation projects and thus the participation of new players, which favors the development of a more competitive market.

Samudio points out that it is long-term tendersdue to its duration, it gives the possibility of obtaining more favorable prices because it ensures the return of the investment in a broader sense to the investor, as well as Banks demand lower premiums for investments arising from this type of scheme.

The expert reminded that the price at which the distributor buys also affects the end customer, because after harmonization with the current regulations, they are transferred to all regulated customers.

Data
The publication of the specification for the act on public bidding must be carried out during the month of February 2024, and the receipt of offers during in the second quarter of 2024, taking into account the changes that the regulator may do according to the applicable deadlines set out in the Procurement Rules.

It must include a technical/economic evaluation using the various bid prices. virtual that considers the prevailing seasons in Panama (dry and rainy), in order to determine whether there is a benefit in the volume of employment and If so, implement this measure.

The electricity and energy firm contracting scheme includes rTransmission line for existing hydropower plants with availability of solid electricity and plants for the production of renewable energy sources (systems of solar, wind or hydropower plants), new or existing, with a backup battery storage system.

power line for renewable energy plants (systems new and existing solar, wind or hydropower plants irTransmission line company with associated energy for hydroelectric power plants existing with the availability of solid electricity and for production plants renewable (solar, wind or hydropower systems) new i exist with a battery storage system.

The proposed scheme for each of these three (3) lines must be considered necessary proportionality according to availability and conditions types of renewable technologies and the volume or deadlines of the request in question to form our matrix within the guidelines Daily agenda energy transition, in accordance with a transparent procedure and no discriminating that develops in Pliege from accusations.

A maximum of 40% of the energy item requirements and up to a maximum of 65% of the power and solid energy related energy items may be for existing renewable energy installations and will be managed separately from the requirements for new renewable energy installations. .

Supply by contracted companies will start on September 1, 2026 for existing renewable plants, or until January 1, 2029 for new renewable plants.

This public tender will be held in the first quarter of 2024 and a representative number of bidders is expected to participate, therefore prices are expected to be competitive.

The National Public Service Administration will develop a enabling regulation battery storage systems within letter aic line 3 specified in the second resolution of this resolution.

This tender confirms Panama as a destination for new local and international investments in clean energy and will contribute to future socioeconomic development, by creating synergies between Panama’s social, economic and environmental indicators and positioning the country as energy HUB reliable and clean technologies at the forefront of the region.

This tender ensures a reduction of HRK 17.5 million Tons of CO2, which represents 29% of the total number Panama’s Nationally Determined Contributioná, within the framework of the Paris Agreement, generating up to 4,600 new jobs at the local level, according to the press release.

“With this action, the country is certainly taking steps towards the decarbonization of the electricity sector and implementing its own Energy transition plan taking a firm step to make Panama effective in its global commitment climate changes from the energy sector, also contributes to the goal of achieving an energy storage capacity of 5% of the total demand planned for 20302, the Panamanian government detailed.