The International Finance Corporation has announced it will contribute $300 million to fund the final stages of Panama’s Penonome wind power plant, Central America’s largest wind farm, a year after the project was launched in Rio de Janeiro by former US president Bill Clinton.
At 215 MW, the Penonome plant will consist of 86 turbines and generate 448 GWh of clean electricity per year, roughly the equivalent of five per cent of Panama’s total energy demand. The project is expected to eliminate over 400,000 tons of carbon emissions and save near 900,000 barrels of oil per year.
Panama’s rapid economic and population growth has outstripped investment in energy infrastructure, resulting in a heavy reliance – more than a third of annual demand – on imported fossil fuels and unpredictable sources of hydropower.
The IFC says the addition of 215 MW of clean wind power will complement Panama’s hydro based generation since wind resources happen to be significantly stronger during the dry season when hydro production is at its lowest.
“Phase II and III of Penonome will add much-needed electricity generation capacity to support Panama’s sustainable development,” said Gabriel Goldschmidt, IFC Head for Infrastructure in Latin America and the Caribbean. “The project is aligned with IFC’s strategy to support initiatives that help Central American countries transition to a cleaner and more efficient energy matrix.”
Project developer and majority shareholder InterEnergy announced in April it had partnered with local company UEP to build Penonome as part of an investment commitment to the Clinton Global Initiative (CGI) Latin America meeting last December in Rio de Janeiro.
“Latin America’s economy is growing every year, requiring the region to increase its installed power capacity,” Mr. Clinton said in Rio. “InterEnergy is a pioneer in power generation and renewable energy, and their incredible progress on their CGI Commitment is driving sustainable development in the region by both decreasing carbon emissions and lowering the price of power for consumers.”
