EIB Lends $300 Million for Naturgy’s Panama Grid Upgrade

• EIB injects $300m into Naturgy to modernise and expand Panama’s power grids, boosting infrastructure reliability and growth across Central America’s energy distribution network.

The European Investment Bank signed a USD 300 million (EUR 259.2 million) loan with Naturgy Energy Group to modernise and expand Panama’s electricity distribution networks, the parties said Tuesday in a joint statement. The financing is aimed at upgrading grid infrastructure and supporting continued expansion of the country’s power distribution system.

Naturgy, the Spanish utility listed in Madrid (BME:NTGY), will use the EIB funds to bolster Panama’s power grids through modernisation and network expansion projects. The loan reflects the institutions’ cooperation on infrastructure financing in Central America and supports Naturgy’s planned investments in the market over the coming years.

How will EIB-funded upgrades enable Panama’s solar and distributed energy integration?

• Reinforce medium- and low-voltage feeders and add substations to boost hosting capacity for rooftop and utility‑scale solar
  
• Deploy ADMS/SCADA and feeder automation (FLISR) to manage variability and speed fault isolation/restoration
  
• Roll out AMI smart meters and secure communications for net metering, dynamic tariffs, and real‑time DER visibility
• Upgrade protection and bi‑directional relays to safely handle reverse power flows from distributed PV
• Enhance voltage control with on‑load tap changers, smart inverter settings, capacitor banks, and line regulators to maintain power quality
• Implement DERMS to monitor, aggregate, and dispatch rooftop PV and batteries as grid resources
• Add strategically placed battery storage at substations/feeders for peak shaving, ramp‑rate control, and frequency response
• Expand and digitalize substations to relieve congestion and cut curtailment on solar‑rich circuits
• Streamline interconnection with standardized processes, faster studies, and clear inverter interoperability requirements
• Harden infrastructure (selective undergrounding, surge protection, weatherization) to keep DERs operating through tropical storms
• Integrate managed EV charging and pilot V2G to absorb midday solar and provide flexible demand
• Support rural/islanded microgrids using solar + storage with black‑start capability and seamless grid‑connected/islanded operation
• Strengthen cybersecurity for a more connected, inverter‑rich distribution network
• Create data portals for prosumers/aggregators, enabling community solar and virtual power plant participation
• Fund workforce training and local O&M capacity for digital grid equipment and DER interconnections
• Tie investment to measurable KPIs (hosting capacity, outage minutes, curtailment) aligned with Panama’s clean‑energy goals