BELMOPAN, Belize (CMC) — Belize has launched a new energy project aimed at strengthening the country’s power supply and improving the reliability of its electricity services.

The US$58.4 million initiative, in partnership with the World Bank and the government of Canada, will also help optimise costs for consumers and ensure renewable energy sources are better utilised.

Belize is currently facing energy security challenges with approximately 50 per cent of its electricity imported from Mexico. These imports, tied to fluctuating oil and gas prices and purchased at volatile spot market rates, make electricity costs unpredictable and burden consumers.

The country’s power infrastructure is also highly vulnerable to disruptions from extreme weather events, demonstrated during Hurricane Lisa in 2022, which left the capital without electricity and potable water.

Combined with no new generation capacity added in over a decade despite a 48 per cent increase in peak demand, these challenges have led to planned power outages and reliability issues that impact both households and businesses across the nation.

The new Belize Energy Resilience and Sustainability Project will deploy state-of-the-art battery energy storage systems across four strategic locations in the country, marking a significant step forward in modernising Belize’s energy infrastructure and reducing its dependency on electricity imports.

“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.”

The project will install four 10-megawatt battery systems in key districts — San Pedro, Dangriga, Orange Walk, and Belize District — improving the country’s ability to manage its power supply, reduce outages, and optimise electricity costs for consumers.

Currently, low-income households in Belize spend up to 30 per cent of their pre-tax income on electricity.

The battery systems will also support the integration of renewable energy sources like solar and wind into the grid, allowing for a higher share of renewables in Belize’s overall energy mix. The ability to balance supply and demand with stored renewable energy will help meet Belize’s National Energy Policy 2023 and its goal of achieving 75 per cent renewable energy generation by 2030.

In addition to improving energy infrastructure, the project will introduce advanced power management systems and software, provide technical training for system operators and create programs to increase female participation in the energy sector through Science, Technology, Engineering, and Mathematics (STEM) education and professional development opportunities.

“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,” said Ambassador of Canada to Guatemala and High Commissioner of Canada to Belize, Olivier Jacques.

“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,” Jacques added.

The project is financed through a US$50 million loan from the World Bank’s International Bank for reconstruction and development, along with a US$8.2 million loan and a US$0.2 million grant from the Canada Clean Energy and Forests Climate Facility.