The Government of Belize, in partnership with the World Bank and the Government of Canada, has announced a new, comprehensive energy project designed to strengthen the country’s electricity supply, improve grid reliability, and bolster the use of renewable energy sources. With a total investment of US$58.4 million, the initiative aims to make energy more affordable for consumers, reduce dependency on external power sources, and pave the way for a greener future in Belize.
Addressing Belize’s Energy Security Challenges
Currently, around 50% of Belize’s electricity is imported from Mexico. These imports are subject to fluctuations in global oil and gas prices and are bought at volatile spot market rates, creating pricing uncertainty for consumers in Belize. Moreover, no new generation capacity has been added in over a decade, despite a 48% increase in peak demand. As a result, Belizean households and businesses have had to contend with planned power outages, unpredictable electricity bills, and a heightened risk of supply disruptions.
The vulnerability of Belize’s power infrastructure to extreme weather events further compounds these challenges. In 2022, Hurricane Lisa exposed the fragility of the grid by leaving the capital without power and potable water for days, showing how single weather events can disrupt essential services and economic activity.
Project Highlights: Battery Energy Storage and Renewable Integration
Central to the newly launched Belize Energy Resilience and Sustainability Project is the deployment of state-of-the-art battery energy storage systems (BESS) across four strategic locations—San Pedro, Dangriga, Orange Walk, and Belize District. Each site will host a 10-megawatt battery system capable of storing, balancing, and distributing energy more efficiently. This modernization effort is expected to:
- Improve power supply reliability and reduce outages
- Lower the cost of electricity for consumers
- Enable a higher penetration of renewable energy in the national grid
By optimizing the integration of solar and wind energy, these battery systems will help Belize realize its National Energy Policy 2023 goal of achieving 75% renewable energy generation by 2030. When renewables contribute a more significant share of the energy mix, the country can cut back on costly imports, stabilize electricity prices, and minimize its carbon footprint.
Quotes from Project Partners
“This project represents a crucial milestone for Belize’s energy independence and sustainability,” said Lilia Burunciuc, World Bank Director for the Caribbean. “By investing in advanced storage solutions and renewable energy integration, we are ensuring a more reliable and affordable power supply for communities while paving the way for a greener future.”
“Energy security is a challenge for many nations, especially for Caribbean countries. This is why the Government of Canada is proud to support Belize in its journey towards a more resilient and sustainable future. By investing in innovative power solutions and fostering inclusive growth, we are helping to build a robust energy infrastructure that will support sustainable development and improve the quality of life for communities across Belize,” said Olivier Jacques, Ambassador of Canada to Guatemala and High Commissioner of Canada to Belize.
Financing and Collaborative Efforts
The project’s US$58.4 million funding package comes from multiple sources:
- A US$50 million loan from the World Bank’s International Bank for Reconstruction and Development (IBRD)
- A US$8.2 million loan from the Canada Clean Energy and Forests Climate Facility
- A US$0.2 million grant from the Canada Clean Energy and Forests Climate Facility
This financing model underscores the importance of global partnerships in addressing the pressing matter of energy resilience, particularly for countries exposed to climate vulnerabilities like Belize. The collective support accelerates progress in modernizing Belize’s energy sector while ensuring the benefits are inclusive and widely shared.
Driving Economic Growth and Inclusivity
With low-income households in Belize spending up to 30% of their pre-tax income on electricity, the project’s objective to lower costs stands to deliver significant socioeconomic benefits. Reliable and affordable electricity is always a key driver for economic growth, attracting both local and international investments that propel the country forward.
In addition to physical infrastructure, the plan also includes introducing advanced power management systems and software, ensuring Belize’s grid can efficiently balance supply and demand. The project will provide technical training for system operators in cutting-edge energy management techniques. Crucially, it will also foster greater female participation in the energy sector through STEM (Science, Technology, Engineering, and Mathematics) education initiatives and professional development opportunities.
Context
According to regional data published by the International Renewable Energy Agency (IRENA), many Caribbean nations, including Belize, have an abundant potential for solar, wind, and other renewable sources. However, the main obstacles typically include limited grid infrastructure, a lack of large-scale energy storage solutions, and exposure to climate risks such as hurricanes. Experts have long cited improved storage capacity and grid modernization as pivotal for tapping into the region’s ample renewable energy resources.
Furthermore, the Inter-American Development Bank (IDB) has identified inadequate electricity networks in the Caribbean as a common bottleneck for private sector growth. Reliable power can significantly reduce operational uncertainty for businesses, thereby stimulating local employment and broader economic development.
Looking Ahead
Belize’s new energy project stands as a particularly relevant case study in how international partnerships can help Caribbean nations leapfrog traditional challenges. By increasing grid reliability, advancing renewable energy integration, and promoting inclusivity in the energy sector, Belize is positioning itself for a more sustainable and resilient future.
As implementation progresses, the modernized infrastructure and enhanced human capital are expected to secure Belize’s power supply against both market and climate uncertainties, delivering long-term benefits for businesses, communities, and future generations.
