Panama is preparing two power and energy tenders for 2027 , in which BESS systems will have a relevant participation within the contracting scheme.
As Energía Estratégica had anticipated the previous year , these processes were already part of the official schedule and do not constitute additional calls for bids. The new element will be the adjustment of power and energy requirements (still undefined) and the incorporation of batteries as a technological priority.
“Battery storage systems will have a significant role in the upcoming tenders that are already being outlined, with a view to developing two more tenders in 2027,” announced Rodrigo Rodríguez Jaramillo , Panama’s National Energy Secretary.
The original roadmap envisioned four tenders between 2026 and 2028. The first two processes have already been completed, while the remaining ones are being prepared for next year with modifications to the contracting blocks and greater technological openness.
Rodríguez Jaramillo explained that the Government structured a bidding program for the period 2026-2028, met the first two milestones and is now working on the two pending procedures.
“It was done based on a program that established a bidding plan from 2026 to 2028. The first two points were met, leaving two of them pending,” he explained.
The program update was initially scheduled to be presented in mid-2026. However, the authorities extended the analysis to more accurately determine demand needs, the future composition of the generating fleet, and eligible new technologies .
“We are conducting a very detailed and conscientious evaluation (...), fundamentally determining the requirements of the demand and the generation fleet that we want to continue modeling, in addition to wanting to be certain of being able to incorporate new technologies,” he added.
“We expect to announce this in a timely manner in November, or at the latest in December. We understand that bidding processes cannot be rushed or conducted hastily; interested parties and investors must have sufficient time to prepare their proposals,” stated the National Secretary of Energy of Panama.
Batteries to support renewable expansion
The incorporation of BESS responds to the need to increase operational flexibility in the face of greater penetration of non-conventional renewable sources in the National Interconnected System.
Batteries allow electricity to be shifted between production and consumption times, respond to generation variations, provide complementary services, and improve grid stability.
Energy planning even anticipates that storage will increase its share by 2029 , both to facilitate the integration of new renewable generation and to strengthen system reliability and optimize demand management.
However, the required capacity, the duration of the systems, the remuneration mechanism, and the technical conditions for participation have not yet been communicated. These aspects will be part of the adjustments that the Government must present before the calls for proposals.
The Panamanian movement coincides with a regional trend: various markets are beginning to include storage solutions within their competitive processes to support the entry of new solar and wind capacity.
The Dominican Republic required BESS systems in the EDES-LPI-01-2025 tender and awarded 325.69 MW of new renewable capacity, accompanied by BESS systems equivalent to 50% of the contracted power.
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The Caribbean country is also preparing another call for bids to cover 300 MW that were left unawarded and a process aimed at adding 200 MW of batteries in operational solar parks.
Guatemala , for its part, awarded 1,258 MW through PEG-5, with a significant number of hybrid solar projects with batteries. It also approved a new procedure to cover approximately 300 MW of outstanding firm capacity.
Meanwhile, Honduras is planning a 1500 MW tender that includes renewable, thermal, and storage capacity. Its development has been postponed to 2027 and remains linked to the progress of the electricity market reform.
Panama has yet to decide whether batteries will be mandatory, whether they will compete as independent energy sources, or whether they will be required to be paired with renewable energy plants. The ongoing review will determine the model the country will adopt.
Two awarded tenders support the roadmap
The next cycle is based on two processes awarded during 2026 , which made it possible to contract new renewable generation and secure energy and power through long-term agreements.
“ This year we have already held two tenders; transparent tenders in a context that allows us to move forward, where we have been able to see the continued interest in Panama from new investors to enter the sector, as well as the confidence of those who are already here ,” Jaramillo highlighted.
The first call, LPI ETESA 01-25 , marked the return of large-scale renewable energy tenders in Panama, dominated by wind power projects and small hydroelectric plants.
While the award reached an average price of 23.86 USD/MWh , one of the most competitive values recorded in the region, four companies concentrated most of the contracted energy.
The second call, however, LPI ETESA 01-26 , deepened the long-term contracting strategy and awarded 22.6 TWh of renewable energy through contracts of up to 20 years.
The tender registered an average price of USD 33.7/MWh , below the reference value, and received more than 70 bids. According to the information shared, virtually all of the required power and energy was allocated.
Although energy storage was not a requirement under the ETESA 01-26 LPI, its results reinforced expectations for the future of batteries. Low renewable energy prices and the increase in variable generation are driving the need for resources capable of providing management capacity, backup, and flexibility.
The process also included a specific line item for the conversion to gas of thermal plants that use liquid fossil fuels , with operation scheduled to begin in July 2029. That requirement also received participation and was awarded.
With the first two processes completed, the market awaits the definition of the adjustments applicable to the 2027 calls for bids . Energy and power volumes, along with the participation model for the BESS (Basic Energy Service Services), will determine the scope of the next investment signal for the Panamanian electricity sector.
The official timeline to date:
