Colombia and Panama advance interconnection plans

Colombia and Panama have made progress on a joint regulatory framework that seeks to pave the way for cross-border electricity trade, according to energy officials.    

Representatives from both countries met in Panama City as part of broader efforts to connect the neighboring power grids via a subsea transmission line.

Antonio Jiménez, the executive director of Colombian power sector regulator Creg, said there was an agreement from both sides to prioritize the plan. 

"We have reached consensus between both regulatory entities, specifically on the four groups of regulatory adjustments that both countries must make to achieve the regulatory reconciliation needed for interconnection," Jiménez said. 

"We are working on the first block and hope to sign it soon," he added. 

In a separate statement, Panama's public services authority ASEP said the initiative would strengthen regional energy integration by "optimizing resources and harnessing surplus generation."

The next meeting between the respective regulatory bodies will be held in June, ASEP said. 

The high-voltage interconnection was first mooted in 2001 but plans have been stymied by environmental and social concerns.

According to preliminary information, the 500kV direct current line would span 500km – 220km in Panama and 150km in Colombia – and include a 130km underwater section. Overall investment in the project is expected to total US$800mn.

The latest proposed route avoids the Darién Gap, a remote 100km stretch of rainforest known for its dense vegetation, challenging terrain and security risks.

The general manager of Colombia's state-controlled transmission company ISA InterColombia, told BNamericas in December that environmental impact studies were at an advanced stage, adding that negotiations were underway with banks to secure financing. 

Colombian officials have said the link would pave the way for renewable energy exports from the Guajira peninsula to Central America's Siepac grid while reinforcing domestic supply, particularly during El Niño drought cycles.