Fitch Ratings expects energy demand will grow at an average rate of 5% between 2015 and 2018 in Panama. Large infrastructure projects -- such as the Panama Canal expansion, Metro system construction, and Tocumen Airport improvements -- will support future economic activity. Rapid energy demand growth has outpaced Panama's low-cost capacity additions, affecting reserve margins and the transmission system's reliability. Energy projects under construction will add energy capacity of 435MW by December 2016, representing a 16.5% increase from December 2013.
Panama had about 2,516 MW in installed capacity in 2013, including 64% from hydroelectric generation and 36% from thermoelectric generation. Thermal plants accounted for 55% of total firm capacity in 2013. Thermal generators should reduce its participation as hydrological conditions improve and new projects become online.
The full report 'Panama Electricity Sector - Tight Reserve Margins to Continue' is available on 'www.fitchratings.com' or by clicking on the link below.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'2015 Outlook: Latin America Power (Stability Despite Economic Slowdown)' (January 2015).
Applicable Criteria and Related Research: Panama Electricity Sector (Tight Reserve Margins to Continue) http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=842928
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