A $900 MILLION natural  gas- fired power plant  that is expected to boost  Panama’s  electricity output by 30%,  will be up and running in 30 months.

Last September, US energy developer AES Corporation announced it was  the winner of the competitive bid to increase Panama's power capacity via gas.

AES Corporation says that developments indicate that the proposed generation plant will raise  Panama’s electricity output by 30%, from 2.4 GW to 3.2 GW.

The construction project consists of two components, a 350 MW combined cycle , natural gas power station with a decade long agreement and another 170,000 m3 storage and regasification facility. Despite the implications of a gas terminal adding harm to the environment, AES Panama manager Miguel Bolinaga says that the cycle technology will generate electricity using waste heat produced by the gas turbines. He also adds that the station will be up and running within 30 months.

The natural gas generation plant, to be built on the Atlantic coast in the province of Colon, will be the first of its kind in Panama, and the expectation  is that it will increase environmentally friendly practices in energy generation.

The country has long been running on hydropower, which in recent years had been threatened by droughts that led to power outages. Public buildings had to be closed from 10pm to 6am during the 2013 drought to reduce electricity usage, and there were restrictions on illuminated  signage . New energy security reduces  the reliance on the dams and also opens new employment opportunities that would improve the country’s economic status and turn Panama into a major energy hub for Central and South America says AES

Although environmentally efficient energy solutions will be implemented in this project, many developed nations are attempting to influence others to focus their efforts in renewables rather than oil and gas. but  countries still largely powered by fossil fuels and have yet to receive sufficient funding for solar, wind, and biofuel solutions.

Other than Central and South American nations, Asia is highly dependent on cheap energy, especially in the Middle East. Progress in the region’s gas compressor rehabilitation also demonstrate the importance of gas, making non renewables still major sources for power in terms of energy and the economy in the Middle East and beyond.