Shared Goals: Central America and Europe Deepen Energy Cooperation

Strategic dialogue links policy priorities with investment opportunities under Global Gateway
(c) GIZ

The EU–Central America Global Gateway Forum, held last week in Panama City, brought together policymakers, investors, business leaders and regional institutions to strengthen bi-regional cooperation and unlock investment opportunities. As a high-level platform, the Forum aims to translate shared strategic priorities into concrete business initiatives, with a strong focus on sustainable trade, enhanced connectivity, and the green and digital transitions.

A Forum highlight was the Strategic Panel on Regional Energy Integration, which explored the role of electricity interconnection in advancing sustainable connectivity and supporting the region’s energy transition. Enrique Morales, Advisor at GET.transform’s Central America Window, contributed to the discussion alongside representatives from regional institutions, European partners, and the private sector.

The panel provided a comprehensive overview of the Regional Electricity Market (REM), joining perspectives from system operators, national authorities, EU-supported technical assistance programmes, and European companies. Participants examined both progress and existing gaps in REM, including the capacity of current systems such as the Electrical Interconnection of Central America (SIEPAC) to support a more advanced, renewable-based energy system. Infrastructure initiatives, notably the Colombia–Panama interconnection project, were highlighted as critical to deepening integration and expanding market opportunities.

The discussion further addressed the regulatory, technical, and financial challenges that must be overcome to accelerate investment. Stakeholders emphasised the importance of coordinated policy action across governments, stronger institutional frameworks, and increased private sector participation. The role of European cooperation under the Global Gateway strategy was recognised as instrumental in mobilising finance and strengthening partnerships across the region.

Looking ahead, the Forum set out clear priorities for future cooperation. These include reinforcing the EU–Central America dialogue under the Association Agreement, better aligning regulatory and investment frameworks, and advancing a joint agenda for sustainable trade and connectivity. Particular emphasis was placed on scaling Global Gateway investments in key sectors such as energy interconnections, clean transport, digital transformation, and the circular economy to help realise a resilient, low-carbon and interconnected energy future for Central America.

(c) GIZ