An Agreement Between Colombia And Panama Paves The Way For A Multi-Million Dollar Energy Deal In Latin America -

(MENAFN- Newsroom Panama) After several technical meetings, Colombia and Panama made progress toward regional energy integration. The regulatory authorities of both countries-the Energy and Gas Regulatory Commission (Creg) in Colombia and the National Authority for Public Services (Asep) in Panama-defined the final text of an agreement that will allow, for the first time, the bilateral exchange of electrical energy. The meeting took place in Bogotá, where high-level delegations consolidated the key aspects of the document. According to Antonio Jiménez Rivera, Executive Director of the Creg,“During this dialogue between both authorities, important areas were evaluated to make this a reality, including short- and long-term energy transactions, firm transactions, some general operational provisions, and the formation of a possible committee of interconnection regulators between the two countries.”

The agreement is not limited to technical aspects. It also covers rules for the participation of agents from both countries in regional markets, establishes mechanisms for resolving disputes, and defines guidelines on access, use, and dissemination of information. These elements seek to ensure that energy exchange is carried out under criteria of transparency, security, and operational efficiency. From Panama, Zelmar Rodríguez Crespo, administrator of ASEP, emphasized the importance of the joint process, highlighting that it was built on pillars such as neutrality, reciprocity, and economic viability.

“This draft bilateral regulatory agreement was developed under the principles of economic efficiency, mutual benefit for the countries, regional vision, transparency, neutrality, simplicity, reciprocity, impact viability, and recognition,” he said. Approval of the document will not be automatic. Once the text is finalized, it must be formally approved in a Creg session, where the most important regulatory decisions in the country are made. Only after completing the corresponding legal and technical process can it enter into force. The electrical interconnection between Colombia and Panama is a long-term project that has been in development for years. This regulatory breakthrough opens the door to closer energy cooperation in Latin America, with benefits that could range from greater supply stability to new commercial opportunities for both markets.

The Implications of the Agreement

The regulatory agreement between Colombia and Panama for the exchange of electrical energy has significant economic implications for both countries, especially in a regional context that demands greater integration and energy efficiency. For Colombia, this represents a strategic opportunity to expand its energy market. The possibility of exporting surplus electricity, especially from renewable and hydroelectric sources, would not only generate additional revenue for the country but would also incentivize new investments in energy infrastructure. This could translate into sector growth, job creation, and greater dynamism in energy-producing areas.

Panama will Reduce its Energy Costs and Dependence on Fossil Fuels thanks to the Electricity Exchange Agreement with Colombia

In Panama's case, interconnection would allow it to diversify its energy mix, access energy at more competitive prices, and reduce its dependence on fossil fuels or more expensive imports. This could alleviate pressure on its public finances and benefit consumers with more stable rates. At the regional level, the agreement strengthens energy integration processes that seek greater security of supply, better use of available resources, and cooperation in the face of extreme weather events such as El Niño. Furthermore, by establishing clear rules on transactions, dispute resolution, and access to information, it builds trust with the private sector, which could pave the way for future bilateral or multilateral agreements within Latin America. This is, in essence, a step toward a stronger and more resilient regional energy market.

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