Panama's $3.3B electricity subsidies since 2004 mask rising generation costs

Panama has spent $3.3 billion on electricity subsidies since 2004 to keep tariffs contained, as generation costs rise due to fuel prices, higher demand, and lower rainfall. The subsidy program masks underlying cost pressures, which could lead to fiscal strain or tariff adjustments if not addressed. The development signals potential energy policy challenges in Panama, with implications for fiscal sustainability and energy market stability.