The Panamanian government has released its first Annual Electricity Sector Bidding Schedule, outlining five energy auctions between 2025 and 2028 to support the integration of new generation technologies beginning in 2029. Among these, a dedicated solar photovoltaic (PV) auction is scheduled for July 2026, marking a significant step toward expanding renewable energy in the country.

The schedule was unveiled during the approval session for bidding process 01-25, the first auction under the new framework. This auction aims to contract 1,420 MW equivalent (MWEq) of firm energy and 1,335 MW of new installed capacity. Energy Secretary Juan Manuel Urriola emphasized that the schedule is designed to ensure a balanced distribution of technologies, preventing generation bottlenecks during specific time periods.

While the upcoming October 2025 auction excludes solar projects—focusing instead on wind and hydroelectric capacity with 20-year contracts—officials confirmed that solar power will receive a dedicated platform in 2026. The decision reflects technical considerations related to energy supply patterns, as solar generation can cause daytime overcapacity when not managed carefully.

According to the government, the 2026 auction will exclusively invite solar-powered bids, providing a competitive space designed to match the operational and financial characteristics of PV projects. The contracted supply for these projects is set to begin in July 2028, allowing adequate time for feasibility studies, financing, construction, and grid integration.

Panama continues to make progress in solar adoption. The National Public Services Authority (ASEP) reported the addition of 143.39 MW of new PV capacity in 2024, bringing the country’s total installed solar capacity to 695.55 MW by year-end—representing 13.79% of national electricity generation capacity.

With a structured roadmap and dedicated auction processes, Panama aims to scale up its clean energy infrastructure while maintaining grid reliability and system efficiency.