Panama’s energy mix is heavily reliant on renewable sources for electricity generation, with over 60–70% coming from hydropower, wind, and solar, alongside significant natural gas use. While renewable electricity is dominant, the country’s total primary energy supply is still dominated by imported oil (roughly 58%), followed by hydropower and natural gas.

Panama is positioning itself as a strategic “green hydrogen supermarket” and logistics hub, aiming to produce 500,000 tons of green hydrogen and derivatives by 2030 and 2 million tons by 2040. Leveraging its canal and maritime infrastructure, the nation aims to supply 5% of its maritime fuel as green bunkering by 2030.

SGP BioEnergy is developing a major facility in Colon and Balboa to produce 405,000 metric tons of green hydrogen annually, linked to sustainable aviation fuel.

As of 2026 there is no information indicating that Panama is producing green energy from electrolysis of seawater.