Panama will reactivate national energy planning with a new long-term strategy that will take effect in 2026 and include competitive auctions for renewable energy projects. The National Secretariat of Energy confirmed to Strategic Energy that the National Energy Plan 2025–2050 will enter into force that year, setting a renewed framework of stability, coordination and investment signals for the power sector.

The plan reestablishes state-led planning as a core public function, guided by a technical and participatory approach. It incorporates territorial, social and environmental criteria and aligns the actions of multiple institutions under a coherent policy framework. The goal is to provide clear guidance to the market and accelerate investment in renewable energy, grid integration and low-carbon technologies.

A four-year auction schedule will accompany the implementation of the plan. The first tenders—focused on hydropower and wind power—will be followed by additional rounds that integrate new technologies and support the gradual conversion of thermal generation units to cleaner fuels. The strategy aims to strengthen a diversified and less fossil-dependent energy mix.

“The first auction—hydropower and wind—will be complemented by future processes covering all sources,” the Secretariat stated.

Alongside the long-term planning initiative, Panama is advancing three strategic pillars: improving electricity service quality, achieving universal access and reducing emissions.

A modernisation of the regulatory framework will be proposed to the National Assembly, with reforms centred on service quality and consumer protection. The government intends to update technical standards and address public demands for a more reliable electricity supply.

The universal access agenda includes new electrification schemes targeted at the 58,000 households that still lack stable electricity service. This expansion will require regulatory adjustments to service obligations and operating models in remote or hard-to-reach areas.

Priority actions include scaling up distributed generation, expanding rural electrification using clean energy technologies and accelerating electric mobility, with new electric buses and additional charging infrastructure. These initiatives are being designed with government technical support to ensure efficient grid integration.

Energy-efficiency measures are also a key focus, with updates to standards, labelling systems and improvements in public buildings. The objective is to reduce consumption in high-impact sectors as part of a broader national emissions-reduction strategy.

Finally, Panama is strengthening its open energy data system, known as SiePanamá, to improve emissions inventories, enhance institutional transparency and support long-term climate planning.

“The country is consolidating the use of open energy data as a tool to improve emissions inventories, transparency and climate-planning capacity,” the Secretariat concluded.