Panama announces review and adjustments in energy tender

Machine translation was used to publish the following National Energy Secretariat release

The National Secretariat of Energy has suspended the Bidding Act for the purchase of Energy and Power, launched during the previous Administration, concluding that it did not meet the minimum requirements to guarantee transparency to investors, nor improvements in prices for Panamanians.

This action seeks to promote equitable and favorable processes for the inclusion of renewable sources, in order to benefit citizens with more competitive rates and move towards sustainable development in the country's energy sector.

The Secretary of Energy, Juan M. Urriola, highlighted the importance of this review, noting that it is vital to ensure an efficient electricity supply. “This decision responds to the need to have Bidding Documents that are clear enough to ensure fair and effective competition,” he added.

The National Secretariat of Energy issued Resolutions No. 01 and 02, nullifying all previous Resolutions related to the Contracting of Power and Energy in the short and long term.

After an exhaustive review of the Contracting Scheme, it was determined that the parameters presented by the last Administration did not guarantee the clarity and transparency necessary for effective competition. Added to the numerous volume of comments and clarifications received during the consultation period, they emphasized the need to make substantial adjustments to the Tender requirements.

Resolution No. MIPRE-2024-0001384, issued on January 15, 2024, had recommended that the Electric Transmission Company, SA (ETESA) present the necessary documents to carry out a public tender to ensure the electricity supply for the end customers of electricity distribution companies. This guideline was later modified by Resolution No. MIPRE-2024-0013955 on April 23, 2024, which included new provisions aimed at the procurement of renewable energy.

Due to the contradictions exposed, the National Secretariat of Energy recommends the cancellation of the Act, and initiates a review of the Energy Contracting scheme, "based on current regulations", emphasizing "that if after this review adjustments are required to the current legislation, will be carried out after extensive consultation with the electricity sector."

Modifications are planned to guarantee the transparency and competitiveness of the contracts, thus protecting users from possible increases in their monthly bills and promoting the incorporation of new renewable generation capacities.