Electric power

[ADAM GAUS]

I am interested in an apartment in Panama City. Since high-rise buildings require elevators, which in turn depend on a steady supply of electricity:
– How dependable is the supply of electricity in Panama City?
– Do apartment buildings generally have back-up generators?
– Does Panama get its electricity primarily from hydro generators, or from fossil-fuel generators?
– I have not heard that Panama has oil or natural gas resources. Is all fuel imported?

[COUNTRY EXPERT- JESSICA RAMESCH]

Here are the answers to your questions, along with some additional context for a big picture overview.

There are hundreds of buildings that depend on elevators and 24/7 power in Panama City. Construction around the world of some 73 new buildings over 200 meters in height in 2013 made it a banner year for skyscrapers. Asia was responsible for about 75% of them, 3 of the 73 were built in North America, and Panama was the only country in the Latin America/Caribbean region to make the “tallest buildings in the world” ranking with 2 buildings–the new Bicsa Financial Center and the new Yoo and Arts Center, both in Panama City. So builders continue to have confidence in Panama’s infrastructure and investment environment.

Because of its reliable power and overall excellent infrastructure, Panama ranks very high on most every regional index published by reputable sources like the World Bank, including indexes that measure: red tape to start a business, internet coverage, telecommunications, civil liberties, and of course, infrastructure (power, water, roads, transit system overhaul)…and more. You’ll find some of this detailed in sections of your Panama Insider website.

Most power in Panama is hydro-power, followed by oil-fired power stations. However, Panama is in the midst of installing Central America’s largest wind farm and steps are being taken to incorporate more solar power into the grid (a major project just had over 30 bids submitted and will soon move on to more concrete phases).

Panama has one of the world’s fastest growing economies, the power demand is growing rapidly and it is not easy to keep up, but the significant steps that have been and are being taken have kept the city running with no power outages due to lack of electricity.

In dry El Niño years, when hydro-reservoirs start to get low, businesses and government offices limit a/c use etc. This has been the case twice, I think, in the 9 years I’ve been living in Panama City full-time.

Panama has no hurricanes but on occasion storms or heavy rain can cause minor outages in cities, though in those cases we have seen that power is promptly restored. For example, we are coming to the end of this year’s wet season now. All season long, my apartment has seen one short outage (about an hour) due to heavy rain. When I called the power company, a recording told me that they were already aware and working on it, so I didn’t even have to sit on the phone and file a report.

Some buildings have back-up generators but before buying an apartment, ask what the generator situation is and just what services the generator powers. You might also write to Pathfinder Real Estate to get an opinion; the company’s contact information is in your Panama Insider website’s rolodex.

Panama is not a producer of crude oil, natural gas, or coal; it serves as a transit point for these via the Panama Canal and Trans-Panama Pipeline (both controlled by Panama).

Panama is one of six Central American countries to join SIEPAC or the Sistema de Interconexión Eléctrica de los Paí­ses de América Central. The project seeks to connect power grids in Panama, Costa Rica, Honduras, El Salvador, Guatemala, and Nicaragua, creating one multinational grid (1,118-miles of transmission) with an independent system operator.

Hope this helps give you a clear picture.

Regards,

[ADAM GAUS]

Thanks, Jessica,

I am pleased to get the information about wind and solar generation, and the possibility of interconnection between national grids. Looks like Panama is forward-thinking.

When in Panama, I will put the question about stand-by generators on my “shopping list”.

Adam

[COUNTRY EXPERT- JESSICA RAMESCH]

My pleasure, thanks Adam!

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