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Panama has officially pledged to move the country toward a carbon-free electricity grid, as the country continues to position itself as a regional leader in promoting a clean-energy environment.

In the latest move, Panama became a signatory to the 24/7 Carbon-Free Energy (CFE) Compact, “marking its commitment towards the global fight against climate change and the transition to a clean energy future,” Sustainable Energy for All (SEforALL) announced last week.  

Panama is pledging to eventually make all electricity consumption come from carbon-free energy sources, every hour of every day.

Panama has become a leader in the green energy movement, attracting billions in investments from around the world. Last year a group of major companies announced plans to develop the world’s largest facility producing sustainable aviation fuel (SAF) and renewable marine diesel.

“Panama’s National Energy Plan 2015–2050 sets forth a comprehensive long-term strategy for the development of the country’s energy sector, with a particular emphasis on renewable energy sources,” SEforALL said. The plan outlines ambitious targets, aiming for 15 percent of Panama’s generation capacity to be derived from renewables by 2030, and a significant increase to 50 percent by the year 2050, the group reports.   

“The benefits of technological innovation and the digitalization of operational and administrative processes in the National Interconnected System are allowing greater security, sustainability, quality, and better energy costs while moving away from coal as an energy source,” Jorge Rivera Staff, National Energy Secretary of Panama, said in the statement.  

Panama joins the governments of Iceland, Scotland, and more than a hundred other signatories. Founding signatories included AES Corporation, EDP, Google, Microsoft, Eurelectric, the Government of Iceland, Orsted, and Statkraft.

“The Compact also includes governments, academic institutions, and private sector companies who have formed an unparalleled global community of stakeholders, energy leaders, and entities, committed to supporting the decarbonization of electricity systems worldwide,” the group said.