The Art of the Solar Deal: How Trump Could Turn Panama into America’s Sun-Powered Ally

In a world increasingly defined by the urgency of renewable energy, few would associate Donald Trump—a man whose political identity is deeply tied to fossil fuels—with championing solar power. But imagine a geopolitical twist so unexpected that it could rival even Trump’s most dramatic headlines: a deal to transform Panama into the United States’ solar energy powerhouse.

It’s an audacious hypothetical scenario, but one that combines Trump’s love for bold moves, job creation, and geopolitical strategy. With its abundant sunshine, pro-renewable policies, and strategic location, Panama could serve as the perfect testing ground for what could be called “The Art of the Solar Deal.”

Panama’s Solar Promise

Panama is a country drenched in sunlight, boasting an average daily solar irradiance of 4.8 kWh/m², with southern provinces like Chiriquí and Veraguas peaking at over 5 kWh/m². The country has already begun its foray into renewable energy, with 522 MW of installed solar capacity as of 2022 and a goal of achieving 70% renewable energy by 2050. But these numbers barely scratch the surface of Panama’s potential.

Solar energy in Panama could not only meet the country’s needs but also provide surplus power for export. Imagine sprawling solar farms in Panama’s sunny highlands, Tesla’s state-of-the-art Powerwalls storing energy, and undersea transmission cables delivering solar electricity directly to the US grid. It’s a vision of a Latin American “solar republic,” built to power American homes and businesses.

Trump’s Potential Role

Let’s face it: Trump’s energy legacy is far from green. His administration championed coal and rolled back climate regulations, dismissing renewables as an afterthought. However, the appeal of turning Panama into a solar hub might just align with Trump’s values in unexpected ways. Here’s why:

  1. Jobs, Jobs, Jobs
    Trump has always touted job creation as a cornerstone of his policies. The solar initiative could create over 93,000 renewable energy jobs in Panama by 2050, with American companies like Tesla, First Solar, and GE Renewable Energy securing lucrative contracts. In return, the US benefits from a strengthened economy in its southern neighbour and a renewable energy source just a short transmission line away.

  2. Energy Independence
    Trump has consistently promoted reducing America’s reliance on foreign energy sources. Solar energy from Panama could provide a secure, long-term alternative to oil imports, aligning with his rhetoric on energy security.

  3. Geopolitical Strategy
    As China’s influence grows in Latin America, a US-backed solar deal would provide a strategic counterweight. Investing in Panama, a country already closely tied to American trade and defence interests (hello, Panama Canal), reinforces the US’s foothold in the region while outmanoeuvring Chinese energy investments.

  4. The “Trumpian” Appeal of a Bold Move
    The audacity of the project itself might be enough to attract Trump’s attention. Transforming an entire nation into a solar energy hub and tying its economic future to the United States is the kind of grandiose, world-altering idea that would fit perfectly in a Trump memoir—or campaign ad.

The Art of the Solar Deal

The hypothetical Trump plan would hinge on massive infrastructure investments, leveraging Panama’s existing tax incentives for renewable energy, such as:

  • Zero import taxes on solar equipment

  • 5% income tax credits for renewable energy projects

  • Accelerated depreciation for solar assets

These policies, coupled with American expertise and funding, could make Panama the crown jewel of a renewable energy revolution. Trump’s negotiation style—equal parts bluster and pragmatism—would be well-suited to brokering a bilateral agreement ensuring US companies lead the charge in solar energy development while Panama reaps economic benefits.

The partnership might also involve building an energy export system using undersea cables or hydrogen storage solutions. Panama’s energy surplus could flow north to power American homes, making the US less reliant on fossil fuels and bolstering Trump’s legacy as a dealmaker.

A New Chapter for Trump’s Legacy?

While Trump’s hypothetical Panama solar deal could secure his place in the renewable energy hall of fame, it would undoubtedly face criticism. Environmentalists might question whether the large-scale solar farms would disrupt Panama’s ecosystems. Others might worry about over-dependence on US investment, fearing the project would turn Panama into a pawn in American geopolitics.

But the potential benefits are undeniable. The deal could prevent up to 2.4 million tonnes of CO2 emissions annually, further US energy independence, and create jobs on both sides of the partnership. For Trump, it would mark a surprising pivot—one that could redefine his legacy as a leader willing to embrace innovation when it aligns with his economic and geopolitical goals.

Conclusion: Sunlight as Diplomacy

In this speculative scenario, Trump’s partnership with Panama wouldn’t just be about energy—it would be about influence, innovation, and redefining the limits of American diplomacy. Panama, powered by the sun, could become a shining beacon of what’s possible when pragmatism meets bold ambition.

It’s a vision that combines Musk’s technological genius with Trump’s deal-making bravado, proving that even the most unlikely partnerships can produce world-changing results. If politics is the art of the possible, then perhaps Trump’s “solar republic” in Panama could one day shine as brightly as the sunlight that fuels it.