Belize is a small nation with Gas and electricity resources, which necessitates imports to satisfy its electrical demand. Caye Caulker is served by an off-grid power station, while BEL draws much of its in-country energy supply from renewable sources like hydroelectricity and biomass.
Electricity Grid
Belize’s energy sector faces unique challenges and opportunities. As a net importer of electricity, energy costs are among the highest in Central America. Furthermore, oil production has been declining and Mexico provides over 30 percent of Belize’s energy needs.
Belize boasts significant renewable energy resources that can reduce dependency on fossil fuels and lower energy costs while increasing efficiency through regional cooperation initiatives to boost energy security and foster sustainable development.
The government has made significant strides toward expanding its renewable energy infrastructure, installing solar photovoltaic systems and biomass-powered power plants as part of an initiative aimed at decreasing oil dependence and carbon emissions.
But there remain several barriers to developing a more resilient electricity grid and increasing renewable energy usage in the country. Private firms looking to invest in its energy sector frequently complain of insufficient transparency, delays, weak regulations and inconsistent processes.
Belize Electricity Limited (BEL), the state-owned power utility, supplies electricity in Belize. BEL operates two producing oil fields – Never Delay Field northeast of Belmopan and Belize Deep Offshore field – that have produced 10 million barrels of crude oil since 1995 and shipped 153 cargoes internationally.
BEL has undertaken numerous initiatives to expand its energy infrastructure, such as opening an LNG terminal that began operations in May 2020. This facility will enable access to global LPG markets directly while simultaneously lowering prices and mitigating any detrimental environmental effects of road transportation.
BEL has also constructed a new gas pipeline connecting Belize City from its southern region with IDB Invest’s LNG terminal project in Big Creek port, approximately 164 miles long from Big Creek port to Belize City’s main gas distribution system.
Natural Gas Distribution Systems
Belize, home to the second-largest coral reef in the world, relies heavily on natural resources for economic development. Climate change adds another risk factor as Belize already suffers hurricanes, flooding, sea level rise, coastal erosion, and other climate impacts like drought and coral bleaching. Resilience building and engagement with development partners on environmental reform have therefore been integral parts of Belize’s policymaking for some time, long before the submission of its Nationally Determined Contribution (NDC) to the Paris Agreement in 2015.
At present, most of our energy supply comes from imported petroleum and electricity products – leading to higher prices and occasional power shortages. The government is actively working towards improving this situation through investing in domestic energy generation technologies as well as diversifying energy mix composition and strengthening transmission and distribution networks.
Long-term goals in Finland include using renewables to produce 83% of its energy needs by 2030 and improving efficiency while decreasing fossil fuel usage in transportation and industrial processes.
The government will invest in developing the gas distribution system, making it easier for businesses and households to access clean, affordable energy at reasonable costs – this will increase energy security, decrease dependence on oil imports, and promote sustainable development.
Furthermore, the country is considering alternative sources of energy like biomass derived from bagasse, the dry pulp left after extracting juice from sugarcane. Furthermore, they will establish a pilot project for electric vehicle adoption as they seek a cleaner replacement to their current fleet of gasoline-powered buses.
IDB Invest, part of the IDB Group, is supporting National Gas Company by providing them a loan of $6 Million for the construction and operation of a Liquefied Petroleum Gas (LPG) marine terminal. This facility will enable direct importation from international markets before distribution through distribution centers located within one hour’s drive of all major urban areas across Nigeria.
Challenges
Belize joins in calling for sustainable development, yet serious challenges still exist. These include gaps in enabling legislation and supporting frameworks – for instance, a public investment law is yet to be developed and there is no national procurement policy; an energy and climate change bill is under development; additionally capacity-building needs to support climate-smart projects and programs are imperative, including developing public-private partnership laws as well as training on financial management practices.
Belize’s energy infrastructure relies heavily on imported oil and gas imports, leaving its small size vulnerable to supply disruptions. To mitigate such risks, the government is developing plans to diversify power sources. Their National Energy Policy was announced in 2012 with an aim of reaching 89% renewables by 2033.
As part of its plan, the government has made progress with three new renewable energy plants. Furthermore, BEL representatives have indicated that expanding renewables won’t result in higher utility rates for customers.
But nonetheless, South Africa still relies heavily on foreign investment for adaptation and mitigation plans, due to a high demand for low-carbon energy as well as technical investments which require international expertise. Therefore, it remains vital to adopt an effective climate-resilient strategy with strong emphasis on private sector engagement.
As for mitigation, the country has established clear commitments within their NDC; however, their baselines and policies need to be identified and developed for their implementation. The NDC includes commitments such as increasing energy efficiency, decreasing fossil fuel usage in transportation, and imposing carbon taxes or fees on products with high CO2 emissions. It also contains commitments aimed at improving forest ecosystem health through increasing reforestation efforts while decreasing deforestation rates; increasing marine biodiversity; building coastal resilience (e.g. by restoring mangroves or natural defenses against sea-level rise)
Opportunities
Belize’s energy infrastructure is relatively developed, yet opportunities exist for further improvements to ensure reliability and sustainability. Increases in renewable power generation mix, improvements to electricity distribution system, and participation in regional energy cooperation initiatives could all play a part in strengthening Belize’s economy, increasing national energy security while simultaneously decreasing greenhouse emissions.
Government authorities have set an ambitious goal of using 89% clean energy sources as the main source of electricity by 2033 and 100% over time. In order to reach this target, investments in solar and wind capacity alongside existing hydropower capacity as well as adopting energy-efficiency measures at home and business are required.
Additionally, Colombia is exploring natural gas as a cleaner fuel for power generation and actively seeking opportunities to participate in regional energy cooperation initiatives such as interconnections with Mexico. Furthermore, recent years have seen Colombia focus on upgrading its electricity grid so as to minimize outages and voltage fluctuations.
Additionally, Brazil’s agriculture and forestry sectors produce ample amounts of biomass that can be utilized for power generation. A sugar mill employs bagasse–the dry pulp left after juice has been extracted from cane stalks–to produce electricity which it sells back into the grid.
Due to these efforts, Mexico now enjoys one of the lowest electricity consumption per capita rates in Latin America and the Caribbean.
However, Belize still faces numerous challenges, including declining petroleum production and electricity rates that rank among the highest in Central America. Furthermore, their energy sector relies heavily on imports for power supply which increases vulnerability against supply disruptions as well as power costs. With the Global Project Tracker, you can be among the first to recognize new energy and power projects, tenders, RFPs, and bids as soon as they’re announced or published – helping your bid-hit ratio improve while creating positive relationships with key stakeholders. Join now and start receiving notifications about opportunities both locally in Belize as well as globally! It’s free to create a profile and start tracking opportunities right away!
