Renewable Energy Auctions

Country / jurisdiction: Panama · Year: 1997 · Status: In force · Level: National · Type: Voluntary

Energy auctions and renewable energy-specific auctions are a major policy instrument for the promotion of renewable energy in Panama.

Law 6 of 1997 established auctions as the procurement method for distribution companies. It also established a 5% price score premium on renewable energy sources bidding in auctions.

Law 42 of 2011 established priority for biomass projects in electricity auctions.

Law 44 of 2011 established wind auctions, providing 15-year PPAs. It limited wind power contracts to 5% of projected electricity consumption, which was later relaxed by Law 18 of 2013 to a “percentage determined according to criteria of energy policy, economy, competition and system security.” The first Panama wind power auction was held in 2011 (LPI-ETESA-05-11). Resolution 1520 of 2013 recommended the realization of a wind power-specific auction for 15-year PPAs for up to 7.5% of distribution companies’ demand, leading to Panama’s second wind-power auction in 2013 (LPI-ETESA 03-13).

Law 37 of 2013 established solar power auctions. Resolution 1579 of 2013 recommended the realization of a solar-specific auction for 20-year PPAs for up to 7.5% distribution companies’ demand. This led in Panama’s first solar auction in 2014 (LPI-ETESA 03-14).

Auction

Year

Type

Solar

Wind

Hydro

LPI ETESA 02-16

2016 (published)

Energy Short term

LPI-ETESA 03-14

2014

Solar long-term

LPI-ETESA-01-14

2014

Hydro long-term

LPI-ETESA 03-13

2013

Wind long-term

LPI-ETESA-02-13

2013

Hydro (no reservoir) long-term

LPI-ETESA-07-12

2013

Hydro (no reservoir) long-term

LPI-ETESA 04-12

2012

Energy Short term

LPI-ETESA-01-12

2012

Energy long-term

LPI-ETESA-05-11

2011

Wind long-term

Official source: http://www.etesa.com.pa/compras.php