Current Economic Outline of the Electricity Sector in Panama
by AmCham´s Trade Specialist - Radu Serrano
ASEP´s latest report, dated May 2016, on Relevant Data of the Panamanian Electric Market, states that this year´s national installed capacity amounts to 3,012.56 MW, comprised of 57.25% hydropower, 34.53% thermal, 6.80% wind, and 1.42% photovoltaic.
According to the preliminary statistics compiled by the Office of the Comptroller General, during the first five months of 2016, our gross electrical generation equaled 4,567,174 MWh, of which 44.51% amounts to hydropower, 41.87% thermal, 13.19% wind, and 0.43% solar.
In relation to the same period (Jan – May) in 2015, this year´s gross electrical generation has increased by 11.1%; hydropower generation has decreased 15.7%, while thermal, wind and solar have increased by 25.1%, 259.1% and 3,793.3 %, respectively.
CURRENT AND FUTURE PROJECTS
ETESA unveiled that it is preparing two bond issues of $350 million and $500 million on the New York Stock Exchange to finance the Third and Fourth Transmission Lines, the execution of new projects and the improvement of existing lines. The first bond issue might be presented in late October.
Third Transmission Line: Veladero – Llano Sánchez – Chorrera – Panamá 230 kV
Constructora Norberto Odebrecht S.A. is advancing in the construction of Third Transmission Line, which starts in the Province of Chiriquí, in Veladero, and ends in Panama City, with a total approximate length of 292 km. This will be a 230 kV double circuit line, with a transmission capacity of 500 MVA per circuit. The substations in Veladero, Llano Sánchez, Chorrera and Panamá will also be upgraded.
Darién Line: Panamá II – Chepo – Metetí 230 kV and Associated Substations
It will be an electrical integration of the Easternmost Panama Sector and will have an estimated total cost of 103,633,000 $. This project will require the following:
- An increase in the capacity of the existing Transmission Line Panama II – Chepo;
- Construction of a new 170 km, 230kV, 300MVA transmission line from Chepo substation to Meteti substation; this will be a single power circuit in towers of double circuit capacity;
- Construction of a new 230 kV Chepo substation with four bays;
- Construction of a new 230 kV Meteti substation with two bays;
* Currently, there is tender opportunity for LIDAR Data Acquisition and Processing regarding this project; however, it is combined with the Fourth Transmission Line project. The date and time for submitting proposals is August 24th, 2016, between 1:00 p.m. - 02:00 p.m.
Fourth Transmission Line: Chiriquí Grande – Panamá III 500 kV and Associated Substations
It will span from Bocas del Toro province, beginning at a new 500kV Chiriquí Grande substation, to the new 500kV Panama III substation. The estimated total cost is 474,982,000 $. ETESA will hold the tender for this project in 2017. This project will require the following:
- Construction of a new 1280MVA, 500 kV Transmission line with an approximate length of 330 km;
- Construction of a new 500/230 kV Chiriquí Grande substation, expansion of the 500/230 kV Panama III substation and installation of Static-Var Compensator of +150 / - 30 MVAR at Panama III substation.
*Currently, there is tender opportunity for LIDAR Data Acquisition and Processing, Easement Acquisition, an Environmental Impact Study and a Preliminary Design of the Line regarding this project; however, it is combined with the Darién Line project. The date and time for submitting proposals is August 24th, 2016, between 1:00 p.m. - 02:00 p.m.
Sabanitas – Panamá III Line and Associated Substations
This new 230 kV transmission line will be built from the town of Sabanitas (Colón Province) to the Panama City. The project cost is estimated at 105,771,000 $. ETESA will hold the tender for this project in 2017. The project will require the following:
- Construction of a new double circuit line: Sabanitas - Panama III 230 kV; it will have an approximate length of 50 km;
- Expansion of the 230 kV Sabanitas substation;
- Expansion of the 230 kV Panama III substation bays.
Panamá III 230 / 115 kV Substation
This project consists on the construction of a new 230/115 kV Panama III substation. It will be located in the Mocambo sector near Panama City. This substation will serve as an interconnection point for new transmission lines of distribution companies, the lines coming from the West and the line from the Sabanitas substation coming from Colon, where the future thermal power plants will be installed. The project cost is estimated at 63,443,633 $. ETESA will hold the tender for this project in 2017.
Abbreviations
ASEP – Autoridad Nacional de los Servicios Públicos is the Panamanian entity that regulates and supervises the provision of public services, water supply, sewerage, electricity, telecommunications, radio and television, as well as transmission and distribution of natural gas.
ETESA – Empresa de Transmisión Eléctrica S.A. is a Panamanian company of high voltage power transmission, which uses substations, transformers and electrical equipment to transport electrical energy.
kV: kilovolt
MVA: megavolt-ampere
MW: megawatt
MWh: megawatt hour
The data presented in this report was taken from the following sources: ASEP, Office of the Comptroller General, and ETESA.