Costa Rica and Panama most promising offshore wind markets in Central America

February 7, 2023
 | 
2 min read
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Central American countries are known for already having very high shares of renewable energy in their national electricity mixes, so what role could offshore wind play in this region?

In the longer term, offshore wind possibilities could develop, most likely in Costa Rica or Panama.

REGIONAL ELECTRICITY MARKET SIEPAC PROVIDES BETTER OFFTAKE OPTIONS

Since 2014, six of the seven countries in the region have been joined through the interconnected electricity market SIEPAC-MER, which facilitates trade and transport of electricity between the countries. This could offer cross-border offtake options for offshore wind, as the electricity can be sold in six countries depending on demand.

COSTA RICA AND PANAMA HAVE OFFSHORE WIND POTENTIAL AND ARE PART OF SIEPAC

Offshore wind speeds are generally moderate in the region, and only four of the six interconnected countries have technical potential for offshore wind development: Honduras, Nicaragua, Costa Rica and Panama.

Of these four countries, Costa Rica and Panama have the most favorable policy environments.

Costa Rica has expressed the strongest interest with the launch of an offshore wind study and has the best wind resources. However, the route-to-market could be more straightforward in Panama with their Green Hydrogen Strategy linked to the Panama Canal.

AEGIR INSIGHTS’ OFFSHORE WIND MARKET REPORT ABOUT CENTRAL AMERICA

Aegir Insights recently published a regional market report analyzing opportunities and challenges for offshore wind in Central America. Follow Aegir Insights on LinkedIn for more insights into global offshore wind markets.

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