Panama

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Country Initiatives

Country Initiatives Details

Divisa Solar 10MW S.A. Project

Canada’s Total Contribution: $5,950,000

Targeted Countries: Panama

Funding Period: 2011/2012

Delivery Partner(s):

Description

The Canadian Climate Fund for the Private Sector in the Americas (C2F) at the Inter-American Development Bank (IDB) provided support for the first utility scale solar photovoltaic (PV) project in Panama. This project was undertaken with the Inter-American Investment Corporation (IIC), which is part of the IDB. The project dispatches the energy it generates to the national electricity grid on a spot market basis. The project is in direct daily competition with fossil fuel generators in the Panamanian market, testing the long-term competitiveness of solar power in the region. As a result, the C2F is assuming a critical de-risking role in the financial structure, absorbing some of the spot market risk the project is exposed to.

Results/Expected Outcomes

The expected intermediate results of this project include the generation of 15,300 megawatt hours (MWh) of energy each year from a renewable source, in addition to the abatement of an estimated 10,300 tons of CO2 each year. The project aims to work with local communities through consultations which address social, economic, environmental, and cultural concerns related to the project. In addition, it recognizes the critical role of gender and supports women’s empowerment through a number of alliances with universities and training institutes. For example, Group Ecos, a sponsor of the Divisa Solar project, developed an undergraduate internship program specifically for female students in the science, technology, engineering and mathematics (STEM) and finance tracks. By year-end 2015, the first two students had completed their assignments and one received an offer of employment upon graduation.

This project has been connected to the electricity grid since August 2015, with the project’s completion resulting in the installation of a 9.9 megawatt peak (MWp) of solar power capacity in Panama and generating 4,278MWh of renewable energy in 2015.

Co-Financing/Mobilized Finance (CAD$): $11,870,000
Estimated GHG (metric tons of CO₂) Reduction Associated with Project (per year)Disclaimer *: 10,300
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