Every year, tens of millions of tons of oil products are shipped through the Panama Canal.1 But despite the important role Panama plays in the transportation of oil around the world, it has very few energy resources to add to the shipments that pass through its backyard. Due to this oil shortage, Panama is exploring energy alternatives to protect themselves from fluctuations in the market. With incentives from the . Not all Panamanians are happy about the influx of these supposedly “clean” projects… especially the hydroelectric dam projects.
Currently there are over 90 hydroelectric projects slated for development in Panama. Several weeks ago, mounting tensions exploded over dam projects planned for the Ngäbe Buglé, or “comarca” region of the country. Ngäbe Buglé Indians blocked the international Pan-American highway near Costa Rica for six days early in February 2012 and again on February 17, 2012.5 After one protester was shot and killed and several more were injured, protestors retaliated by setting fire to a police station.
To understand how this situation evolved, it is necessary to go back to early 2011, when the Panamanian government amended the national mining law 415. This amendment would have allowed for mines and dams to be built in the region. After several months of negotiations, government officials agreed that an article, “Article 5,” would be written into the mining law to protect the entire comarca from mining and hydroelectric exploration and development.7 Now, a year later, the government has decided to remove Article 5 from the law.
Panama has tough energy choices ahead. Indeed, the director of the National Secretariat of Energy (Secretaría Nacional de Energía, SNE) recently stated that electricity rate increases for consumers in the country are expected to increase between 25% and 30% in the next several years.9 The challenge will be to develop a strategy for building more national energy capacity that is sustainable and does not marginalize or negatively impact some populations more than others. Environmental activist and director of the Panama Sustainable Foundation, Raisa Banfield, recently reminded Panamanians that after displacement of native communities in the Bocas del Toro province, the region now produces 42% of energy in Panama, but consumes just 1% of the energy. In her words, Banfield said the country cannot “seguir justificando un progreso que no está sustentado en un aprovechamiento equilibrado de los recursos naturals,” which translates to state that the country cannot continue to justify progress that is not supported by a balanced use of natural resources.10
Dams have been the subject of controversy for quite some time, and some have even been placed under removal projects. For more on other dam controversy and developments, you can read these articles:
