CCIAP: Panama must regain momentum in the energy sector

The Chamber of Commerce, Industry and Agriculture of Panama (CCIAP)calls for the recovery of the momentum of the energy sector and its investment dynamics, implementing a clear vision and defined rules that allow building a prosperous future for all Panamanians.

In its Sunday newsletter, the union indicated that currently Panama experiences historical energy consumption and according to National Dispatch Center (CND)in 2023 alone, the registered energy demand was exceeded more than five times, which usually happens once a year.

They point out that last week CND reported a record consumption of 2,171 MWas the extension of the dry season puts the country back under control, even with the threat of rationing continuing like this.

“We are facing another situation that shows the need to accelerate investments in infrastructure, quality of services and activities towards the energy transition,” he says. CCIAP.

According to the union, since the modernization of the sector, Panamanians have enjoyed unprecedented increases in energy coverage and availability. Thanks to this, our economy has been able to grow in countless areas, directly benefiting thousands of Panamanians. This is the result of strong institutions and a clear legal framework that made it possible to attract large investments.

However, the group points out that for several years insufficiently transparent decisions and the politicization of the sector have resulted in the loss of dynamics in it and the lack of investments needed to modernize the system, mainly in energy transmission and distribution. .

“What used to be a clear plan suddenly turned into an endless and paralyzing debate. “Such a situation has a direct impact on the private sector, as well as on consumers, who are noticing an increasing deterioration in the quality of energy services,” he added.

They believe that items such as tourism and trade in the sector Western and Pacific Riviera significantly affected by power outages. The fact that we still have significant transmission, distribution and service challenges at this point is an indication that something is wrong in the system.

In addition, global climate and political phenomena, such as the Russian invasion of Ukraine, make it clear that everything related to energy must be treated as a national issue, due to its vital importance to the future of the country.

“Although Panama does not control the weather or prevent new wars, it has in its hands – with investments in transmission and distribution – the ability to accelerate Energy transition plan continue to grow its clean energy matrix and thus better face climate and geopolitical uncertainties,” details CCIAP.