PM says new power suppliers could come online within months; blames energy crisis on years of underinvestment by previous administration

By Breaking Belize News Staff: Prime Minister John Briceño says Belize’s present electricity challenges are the result of years of inadequate investment in domestic generation and transmission infrastructure, while maintaining that several projects now underway could eventually reduce the country’s dependence on expensive imported power.

Briceño rejected suggestions on Friday that Belize Electricity Limited is simply taking advantage of consumers as electricity prices increase. Instead, he blamed the situation partly on what he described as 13 years of insufficient investment under the former UDP administration, saying Belize failed to add enough domestic generation capacity as demand grew.

The World Bank has similarly noted that Belize added no significant new generation capacity for more than a decade even as peak electricity demand increased by 48 percent, leaving the country heavily dependent on Mexico. Approximately half of Belize’s electricity has at times been imported through Mexico’s Comisión Federal de Electricidad.

Briceño said BEL has at times been forced to purchase electricity from Mexico at extremely high spot-market prices, including prices approaching US$1 per kilowatt-hour during periods of scarcity. He has made similar statements publicly before, while BEL has reported financial difficulty caused by power-purchase costs exceeding what it was recovering from consumers.

The Prime Minister said government is now working to rapidly introduce additional suppliers under measures taken to address the energy shortage. According to Briceño, one new source could potentially begin generating within six months, while four or five additional producers could be operating within approximately a year. He estimated the additional generation could ultimately produce savings of approximately $28 million annually.

Several major projects are already in development. A World Bank and Canadian-backed US$58.4 million programme was launched to install four 10-megawatt battery energy-storage systems in San Pedro, Dangriga, Orange Walk and the Belize District. The project is financed principally through a US$50 million World Bank loan. (World Bank)

Government is also pursuing the Saudi Fund for Development-backed renewable-energy project, originally financed through a US$77 million loan for 60 megawatts of solar generation. Public Utilities Minister Michel Chebat said earlier this year that the project was being reconsidered to incorporate battery storage alongside solar generation.

Meanwhile, modifications to Belize’s US$125 million Millennium Challenge Corporation Compact have shifted an additional US$20 million into the energy component. Among the investments planned is a new 69-kilovolt submarine transmission cable to Ambergris Caye intended to strengthen supply to the island.

Briceño said government hopes that as additional generation, storage and transmission infrastructure comes online, electricity costs could begin moving downward around 2028 or 2029.

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