Green Investment Opportunities in Panama

Countries such as Germany and Spain have implemented laws that encourage the production of energy from Renewable Resources. Panama is giving its first steps towards alternative ‘green’ energy , which benefit the environment and reduce emissions of carbon dioxide (CO2).

In Panama, the largest amount of energy is produced by petroleum (85.4%), but future use of sources that do not aggressively impact the environment, such as “green power” could be an alternative.

Among the main sources of renewable energy are wind, solar, marine, geothermal and hydro.

However, the possible introduction of some of them have been slowed down by its high cost. Build a thermoelectric plant can cost 500 dollars per megawatt (MW), whereas a hydroelectric plant is between one million 500 thousand dollars and $ 2 million, but it should be noted that this type of generation, after constructed, is cheaper .

Water: source of life

At this time, according to the National Authority of Public Services (ASEP), there are 15 hydroelectric projects that are under construction, which will have an installed capacity of 597.27 MW and will be ready between 2010 and 2012.

According to Rafael De Gracia, director of the Electricity of Asep, “the percentage of energy must increased because Panama has sufficient water tributaries.” Eduardo Vallarino, President of the Panamanian Association of Producers of Renewable Energies (Apper), states that “there are five times more water energy than thermal to be produced.”

Although it is noted that it is always important to have some thermal production capacity to diversify the sources.

Winds

Another alternative is feasible and positive energy generated by solar and wind strength or wind.

Solar panels now have a price of four dollars to produce one watt, but the international industry is making efforts to create products of this type to generate a watt for every dollar invested.

Solar energy is encouraged in Panama through Law 45, which allows domestic use and offers the elimination of taxes on imported equipment which produce up to 10 MW and a tax incentive of up to 25% in direct investment.

Currently this type of generation is used in remote sites, to supply schools and health centers, a practice that could be copied elsewhere in the country to promote energy saving.

Already there is a company that holds the license to start construction of a wind power farm. The project is developed by Enrilews S.A. in Coclé and will generate 225 MW.

According to Vallarino, the force of the wind to generate power should be 10 meters per second (m / s) on an ongoing basis. In Panama, this is of 25 m / s (such as a hurricane).

The speed is strong enough to generate energy, but there is no evidence in the gusts of wind to rely on this method.

There are 27 companies registered in the Asep to build wind farms.

A new world

Another point in favor of generating green are the economic incentives that can be generated.

Mexico, Turkey and Egypt receive funds for clean technology of 50 thousand million dollars from the World Bank and regional development banks. There are also incentives for clean energy production, through the sale of carbon certificates.

Panama recorded five projects are approved by the United Nations as a Clean Development Mechanism, which total 291 thousand 579 certified emission reduction. These are bought by the thermal power emitted CO2, which shows that there are opportunities.

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