AES's 223-MW Changuinola I hydro plant in Panama is set to begin commercial operations in the first half of next year, wire services reported.
The plant will use water from the Changuinola River in Bocas del Toro province.
AES Panama is the country's largest hydro generator, with installed capacity of 482 megawatts.
In other news, Brazil's 210-MW Serra do Facao hydropower plant is projected to come online within three months, the president of project developer Serra do Facao Energia consortium told wire services.
The Serra do Facao hydro project initially was planned to come online in October 2010.
The plant is located in the Brazil's center-western state of Goias.