“Renewable Energy and Energy Efficiency in Latin-America Forum”

“Vision and Energy Policy 2011-2014”

Rome, Italy

September 15, 2011

1

Our Mission

To establish and promote Panama´s Energy Policy:

Guarantee Energy Security,

Promote the rational and efficient use of energy resources.

Take advantage of the country´s own energy natural resources and make

sustainable use of them.

Use energy in a sustainable way; according to the national energy

development plan and within the economic, competitive, quality and

environmental issues and regulations.

2

Our Vision

Panama with an energy system, that promotes the development

and use of renewable sources of energy, and oriented towards

a competitive market with a social and environmental

responsibility.

3

Pillars of the National Energy Secretariat of Panama

Make energy services available to 95% of our population by year

2015.

Energy security,

A diversified energy matrix

Promote the use of renewable and cleaner sources of energy,

Promote the rational and efficient use of our energy resources.

Promote the development of the regional electricity market.

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source: ETESA 5

726,40 754,50 777,00

839,30 857,35 882,86 924,96 946,28 971,34

1.024,16 1.064,25

1.153,99

1.222,40 1.286,46

0

200

400

600

800

1000

1200

1400

Historical Maximum Demand in MW (1998-2011)

Growth

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0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

90,00%

100,00%

Gross Electricity Generation per type of power plant 1970-2010 (%)

HIDRO

BUNKER

DIESEL

A Diversified Electricity Generation Mix

732 MW in Hydroelectric power plants for the period 2010-2014.

200 MW of wind energy for 2013

Photovoltaic Solar Energy (2.4MW to 5MW).

Liquid natural Gas Installations 200 MW (initially

with potential increase up to 500MW).

Geothermal energy ( 24 MW).

Regional electricity Interconnections

SIEPAC – 300MW

ICP - 600MW 7

2010 2011 2012 2013 - 2014

Paso Ancho 6MW

New HYDRO Electric Projects coming in Line

Mendre 20MW

Los Planetas 5MW

Gualaca 25.1MW

Baitún 85MW

Cochea 16MW

Bajo de mina 52.4 MW

Pedregalito 2 12.5MW

Pedregalito 1 20MW

Chan 1 223MW

Prudencia 56.2MW

Lorena 35.7MW

Pando 32.6MW

Monte Lirio 52MW

El Alto 60MW

Bonyic 30MW

31 MW 425 MW 101 MW 175 MW

Year of start of Operations Fuente: SNE 9

WIND 200MW LNG 200MW

2014 2013

WIND ENERGY

Law 44 of April, 2011, establishes and dictates the

norms and regulations for the construction and

operation of wind energy power plants to be developed

in Panama. These power plants may be integrate it to

the National Interconnected System.

Exclusive bidding processes for wind energy.

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Regional Strategy

Development of the Regional Electricity Market, via

projects such as:

• SIEPAC

• ICP

11 Fuente: EPR

Colombia-Panama Electricity Interconnection

600Km of Electric transmission line, High Voltage Direct

Current (HVDC)

Sub stations in Cerro Matoso, Colombia and Panamá 2, Panamá

Estimated Investment = $600MM Expected year to come in operation = 2014

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Colombia-Panama Regional Electricity Interconnection

there is an agreement for a

detailed study of the border area

between the 2 countries, In order

to determine which right of way

should be subject to

Environmental Impacts,

The right of way has been defined

with the consensus of the

Embera-Wounaan in order to get

the required approvals.

Environmental and Social affairs are being dealt with according to the standards set by

The IDB / IFC / CAF

Details - ICP

Construction of a 614 km Electricity Transmission Line (340-km in Colombia and 274-km in Panamá), Direct Current (HVDC), 450-kV.

The initial capacity of the line will be 300-MW in its first phase; expandable to 600-MW in its 2nd phase.

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Benefits of the Regional Integration

The SIEPAC project will contribute to our regional energy security and will be a determining social and economic factor by making electricity costs more accessible due to the economies of scale and higher efficiencies.

Contributes to energy efficiency and to the environment, by stimulating a competitive market via the development of Regional Electricity Generation Power Plants.

Facilitates the Development of the regional Telecommunications market

Stimulates investments in the energy sector, due to the larger market to serve. It will also serve the member countries as a tool of negotiation. The market would be able to negotiate terms as a block and therefore get costs and other benefits.

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Program for the Rational and Efficient Use of Energy

Norms and Legal Framework: Includes Labeling Energy Consumption of products, A software for capacity building and energy consumption data management. Energy Education plan Energy Diffusion Plan Creates new Norms for the Construction sector of the economy

Promotes the use of efficient modes of transportation and less consuming car

combustion engines

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International Consultants

For the Renewal of Panama´s Electric Market,

For the efficient development of Wind Energy in Panama

For the implementation of a diversified energy mix

The IDB and The Bariloche Foundation support capacity building

for technicians who may want to master in electricity, petroleum

products, renewable energies, and other subjects related to

energy.

Development of a new career at the Technological University of

Panama, “Efficient Management of Energy Resources"

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Oil and Gas

Reorganization and digitalization of all past history information

available from previous studies that date back all the way to 1913.

Identification of 9 potential oil blocks, dispersed thru the areas of

Darién, the Golf of San Miguel, and Bocas del Toro among other

places.

Selection of the 2 most promising basins.

By the end of 2011 and in 2012 there will be an approach to the

international petroleum markets and players to begin the

exploration phase in the areas that have been determined to be most

promising.

Thank You!

Juan M. Urriola T Secretario de Energía Tel: +507 527-9960 www.energia.gob.pa

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