Ecuador explores power imports from Panama via Colombia interconnection as bilateral cooperation expands

President Noboa stated before the meeting that Panama could sell electricity to Ecuador once the Panama-Colombia interconnection is operational. The Ecuadorian grid already connects to Colombia, creating a potential three-nation corridor. Noboa compared Panama’s energy position to Paraguay, noting both countries maintain persistent generation surpluses. He explained that Panama experiences periods of excess capacity available at favorable costs, which Ecuador could purchase. The arrangement would require completed interconnection infrastructure and formal commercial agreements between the three nations.

The energy discussion took place during Panamanian President José Raúl Mulino’s official visit to Guayaquil, where both leaders addressed broader cooperation topics including organized crime, drug trafficking, tax information exchange and commercial expansion. Following the bilateral meeting, Colombian President Abelardo De la Espriella joined by telephone to express support for extending the Panama-Colombia electrical interconnection project to include Ecuador. The three presidents agreed to advance the regional grid expansion, though implementation timelines were not specified.

Ecuador’s interest in external power supplies follows a severe energy crisis in late 2024, when drought reduced hydroelectric output and forced rolling blackouts lasting up to 14 hours daily. Noboa did not address whether Ecuador faces renewed supply risks as the El Niño phenomenon intensifies, potentially triggering new dry periods that would again strain hydroelectric generation. The country’s heavy dependence on hydro capacity makes imported electricity from surplus producers strategically valuable, particularly if Panama can sustain exports through varied weather conditions.

Beyond energy, the presidents signed terms of reference for a Partial Scope Agreement to begin formal trade negotiations, building on discussions initiated in 2023. They also executed an inter-institutional accord for migration data exchange between Ecuador’s Interior Ministry and Panama’s Public Security Ministry. Noboa announced a circular employment agreement allowing Panamanian workers to enter Ecuador during periods of labor demand, while Ecuadorian workers could travel to Panama when domestic seasonal activity declines. The employment arrangement reflects complementary economic cycles between the two nations.

Security cooperation figured prominently in the agenda, with both countries committing to intelligence sharing through Ecuador’s Financial and Economic Analysis Unit and banking superintendencies in both nations. The commitment followed Panama’s August 2026 decision to designate Ecuador as a friendly nation, facilitating mobility, investment and professional exchange. Ecuadorian Ambassador to Panama Pascual del Cioppo indicated the Partial Scope Agreement could reach signature within weeks, accelerating bilateral commercial integration.