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Panama City Blackout Rumors Dispelled

Friday, March 28, 2008

Dear International Living’s Panama Roundtable Member,

Local residents are voicing concerns over an hour-long blackout in Panama City and the town of Colón that occurred on Wednesday, March 26. Panama has long been known for its copious energy supply and for being relatively blackout free. But is the demand becoming too great for Panama’s energy supply?

Electric company Etesa reports that the blackout was not due to excessive demand. According to a company spokesperson, a faulty transformer was to blame, and the equipment has since been repaired.

Energy is, however, a hot topic in Panama these days. There’s no doubt the demand is rising, as Panama City continues to experience record-breaking energy demands. Much of the capital’s energy is hydro (generated by the Panama Canal), and thus a prolonged dry season could, in theory, affect productivity and require rationing.

"For now we have enough to meet the demand," says Dani Kuzniecky, Panama’s energy secretary and minister of canal affairs. AES Panama, one of the nation’s many hydro-electric concession operators, recommends conserving energy where possible, especially during the dry season (December to April).

You can save money and energy by buying energy-efficient bulbs, keeping air-conditioning temperatures as high as possible, and limiting use of air-conditioning and other large appliances (like clothes driers…I don’t even use one in the dry summer months, when I can simply hang clothes out to dry).

Meanwhile, don’t fret, as the government has plans to increase energy production in Panama. New projects include thermo-electric plants and hydro-electric plants in different parts of the country. The government is also exploring alternative means of energy production.

Among projects in the works are a $500 million thermoelectric project dubbed "Isla Telfer" being built in Cristobal, Colón, by Termoeléctrica Monte Esperanza Power Co. Project promoter Paul York says the company will minimize environmental impact and the plant’s emissions will be 99.9% particle free.

According to the National Environment Authority (ANAM), Panama has some 126 renewable energy projects in the works, including biomass production, small hydro-electric plants, eolic (wind) energy, and renewable energy from methane.

Best regards,

Jessica Ramesch
Editor, Panama Insider

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