Friday, Aug 12, 2022

Panama and Colombia sign agreement to regulate electrical interconnection

Panama and Colombia sign agreement to regulate electrical interconnection

It is expected that the Colombia - Panama electricity interconnection will improve the provision of energy service and reciprocal assistance in case of emergency.

The Governments of Panama and Colombia signed an agreement that establishes the principles, basic criteria and general guidelines of the Regulatory Harmonization Scheme for the development and operation of the electrical interconnection between the two countries.

The agreement signed by representatives of the Ministry of Mines and Energy of Colombia and the National Secretariat of Energy of Panama for the electrical interconnection will allow to make an optimized use of energy resources, improve the quality in the provision of electric power service, strengthen reliability systems of both countries and ensure mutual assistance in case of emergency.

Those in charge of developing the Regulatory Harmonization Scheme, which includes the definition of the necessary mechanisms for the development and remuneration of the works contemplated by the project will be the Energy and Gas Regulation Commission (CREG) of Colombia and the National Authority of the Public Services (ASEP) of Panama.

These entities will also be in charge of defining the rules for the commercial and technical operation of the Colombia - Panama Electric Interconnection, which includes the construction of a transmission line from the Panama II substation (Panama province) to the Cerromatoso substation (Department of Cordova).

This line will have a transmission capacity of 400 MW and an approximate length of 500 kilometers, which includes two land sections of 220 kilometers and 150 kilometers and a submarine section of 130 kilometers. In addition, "it will be developed in the technology known as direct current power transmission (HVDC), which represents great benefits from a technical, economic and environmental point of view," a statement said.

During the signing ceremony of the Agreement, Jorge Rivera Staff, Secretary of Energy of Panama assured "this is another milestone of the commitment that both countries have to promote projects that guarantee energy security for the region, through a diversified, safe, reliable and responsible with the environment, where integration acquires a new social scope ”.

For his part, the Minister of Mines and Energy of Colombia, Diego Mesa indicated that "the signing of this agreement constitutes a fundamental step in the process of making the electrical interconnection viable, which represents the integration of the Andean Community with Central America."

It should be noted that the electrical interconnection offers Colombia and Panama an energy export alternative that will make it possible to take advantage of their available supply and provide greater business opportunities for all agents in the production chain.

"Likewise, each country will have access to economic generation sources (available on the other side of the border), which will contribute to reducing energy costs in the medium term and saving fuel," said a statement from the Ministry. of Mines and Energy of Colombia.


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