Panama recently enacted a new law, which aims to promote wind energy by mandating long term power purchase tenders. The implications of this new law lend some uncertainty to Panama's electricity development pathway. This paper quantitatively analyzes the current status of power generation in Panama, and explores various potential future scenarios and the associated impacts on the system marginal cost, global warming potential, and resource diversity index. To this end, this study applies the scenario development methodology developed by Schwartz in the context of the energy-economic modeling platform 'Long-range Energy Alternative Planning' (LEAP). Four scenarios are developed and analyzed. The Business as Usual scenario extrapolates the electricity generation trend that has been observed over the last decade; it is compared to three alternative scenarios which have more specific objectives. Scenario 1 encourages climate mitigation without incorporating new technologies in the generation mix, Scenario 2 maximizes resource diversity, and Scenario 3 minimizes global warming potential. For each scenario, the composition of the electricity generation profile, system marginal cost, global warming potential, and resource diversity is predicted quantitatively. These scenarios to not attempt to forecast likely developments, but rather illuminate the tradeoffs that different development pathways entail. (C) 2014 Elsevier Ltd. All rights reserved.