Antón, Panama – German multinational energy company UKA will invest $200 million to develop a major new wind farm in Panama’s Coclé province, the company has exclusively confirmed. The La Colorada wind project, located in the Antón district, will have a generation capacity of 140 megawatts (MW), marking a significant private sector investment in Panama’s renewable energy infrastructure.
The project will proceed based on a provisional license granted to UKA by Panama’s Public Services Authority (Asep) in 2021, which is now in the process of obtaining final approval. Project leader Héctor Miranda, the engineer spearheading the investment, detailed that the development will involve the installation of approximately 20 state-of-the-art wind turbines, each with a capacity of 7 MW.
During the construction of the wind plant, which will cost about $200 million, between 150 and 200 direct jobs will be generated in the construction stage, and the development of micro, small, and medium-sized enterprises (MSMEs) will be boosted by incorporating them into the investment, [Translated from Spanish]
Miranda stated. He further emphasized the project’s commitment to local communities through social programs aimed at improving the quality of life for residents near the development.
Strategic Location and Land Use for the La Colorada Wind Project
The La Colorada wind farm will be developed across a 3,000-hectare area spanning the districts of Antón and Penonomé. A key advantage highlighted by the developers is the project’s compatibility with existing land uses. The generation of wind energy does not preclude the land from being used for other activities such as agriculture or livestock farming.
This allows the company to operate a land leasing scheme, providing a steady stream of income to the families who own the affected farms. This co-existence model is seen as a sustainable approach to large-scale renewable energy development, ensuring economic benefits for local landowners while adding clean energy capacity to the national grid.
This investment will be made based on a provisional license granted to UKA by the Public Services Authority (Asep) in 2021, which is in the process of final approval, to which is added the company’s decision to participate in the upcoming tender for energy supply, convened by the regulator for early 2026, [Translated from Spanish]
Miranda explained. This participation in the future tender is a strategic move to ensure the project’s long-term sustainability and improve its access to financing.
UKA’s Global Expertise and Panama’s Energy Future
UKA brings substantial international experience to the Panamanian market. The German company has 25 years of experience in developing renewable energy projects, with a presence in Germany, several other European countries, Chile, and Panama. Globally, the company is advancing a pipeline of 6.5 gigawatts (GW) of projects, operates plants that generate 1.5 GW, and employs more than 1,000 people worldwide.
The development of the La Colorada wind farm comes after several years of legal efforts by UKA to secure its future interconnection with Panama’s electrical system. The resolution of this litigation paves the way for the substantial $200 million investment. The project represents a vote of confidence in Panama’s renewable energy sector and aligns with global trends of increasing foreign direct investment in sustainable infrastructure.
For more information on energy regulation in Panama, visit the official website of the Public Services Authority. Details on UKA’s global operations can be found on the company’s official website.