...Tight Reserve Margins to Continue: Fitch Ratings expects Panama's electricity market will continue to be stressed in the short to medium term as a result of severe hydrologic conditions and congestion in the country's main transmission lines. Existing hydrologic problems are likely to continue in the next year as a moderate El Ni±o effect is expected in 2015. Transmission problems could continue until 2016, when the Chiriqui-Panama line starts operations. These factors could trigger consumption reduction programs and blackouts, as was the case in 2014. Demand Growth Drivers: Rapid energy demand growth has outpaced Panama's low-cost capacity additions, affecting reserve margins and the transmission system's reliability. Strong GDP growth, averaging 9.0% annually over the last six years, has driven electricity demand up 6.6% annually on average for the last four years. Fitch expects energy demand will grow at an average rate of 5.0% between 2015 and 2018. Large infrastructure projects --...
