The LPI ETESA 01-25 tender left two strong signals for the Panamanian market: an average awarded price of 23.86 USD/MWh and a clear predominance of wind technology in the assigned supply, a result that reinforces renewable competitiveness in the country.
Of the total awarded capacity, wind power projects accounted for 12,453,642 MWh , while hydroelectric plants totaled 2,643,677 MWh . Furthermore, the directly awarded firm capacity was 5.9 MW , corresponding to hydroelectric technology, while with the participation of the virtual bidder, the average rises to 35.59 MW .
In parallel, the auction awarded 15,097,321 MWh for USD 360.2 million , with bids ranging from USD 20.05 to USD 26.92/MWh , and an equivalent average of USD 23.86/MWh calculated according to the tender methodology. These values correspond to prices discounted to present value using a 12% discount rate, and therefore do not represent direct nominal supply prices, but rather the equivalent economic value used to evaluate the bids. “It is a very competitive result for 20-year contracts and sets a strong benchmark for future processes,” industry sources indicate.
The weight of wind power is reflected not only in the volume awarded, but also in the economic component of the process , having set the lowest bid in the auction at 20.05 USD/MWh and contributing to consolidating the competitive average that the tender left.
With the participation of the virtual bidder, the total volume allocated amounts to 16,186,881 MWh , while the economic commitments reach USD 441.1 million .
The result takes on added significance given the preceding context. The tender had received seven bids and came at a time when the market was closely monitoring whether competition would allow for sustained aggressive pricing in long-term contracts.
Sources consulted maintain that the result confirms that expectation. “The auction shows that there is still room for aggressive pricing in Panama,” they indicate.
The energy contracts were awarded for 240 months , while the firm power was committed for 216 months , a combination that provides predictability for expansion and support for the system.
In addition to the average price, the technological distribution appears as another of the central messages of the process: wind power is consolidating as the dominant technology in new contracts, while hydropower maintains a complementary role for system firmness and support.
In both variables —prices and technological mix— Panama sends a strong signal for future tenders.
