Panama has surpassed 75% of installed electricity capacity from renewable sources, positioning itself as a regional leader in clean energy. Law 417 of 2023 expanded solar incentives, offering import exemptions, tax credits up to 50%, and the National Energy Plan 2025-2050 will launch 500MW+ auctions in 2026 with 20-year PPA contracts.
Discover the main opportunity areas in this sector
Solar projects with equipment import exemption, 5% direct tax credit, and up to 50% for projects over 10MW.
Law 44 of 2011 establishes specific incentives for wind farms connected to the National Dispatch Center.
2026 auctions will include battery storage as a key component of the energy transition.
Panama has multiple operational hydroelectric projects and expansion potential in strategic basins.
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Last updated: 2/16/2026
