Belize partners with World Bank on new $58M energy resilience project

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Ajay Banga 14th President of the World Bank Group | Official Website

The Government of Belize, in collaboration with the World Bank and the Government of Canada, has launched a new energy project designed to enhance the country's power supply and improve electricity service reliability. The $58.4 million initiative aims to optimize consumer costs and increase the use of renewable energy sources.

Belize currently faces challenges with energy security, importing approximately 50% of its electricity from Mexico. These imports are subject to fluctuating oil and gas prices, leading to unpredictable electricity costs for consumers. Additionally, Belize's power infrastructure is vulnerable to extreme weather events, as evidenced by Hurricane Lisa in 2022, which caused significant disruptions. With no new generation capacity added in over a decade despite rising demand, planned outages have become common.

The Belize Energy Resilience and Sustainability Project will implement advanced battery energy storage systems at four strategic locations across the country. This development is expected to modernize Belize's energy infrastructure and reduce reliance on imported electricity.

"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."

Four 10-megawatt battery systems will be installed in San Pedro, Dangriga, Orange Walk, and Belize District. These installations aim to improve power management capabilities, minimize outages, and optimize costs for consumers who currently spend up to 30% of their pre-tax income on electricity.

The project also supports integrating renewable sources like solar and wind into the grid. This capability aligns with Belize's National Energy Policy 2023 goal of achieving 75% renewable energy generation by 2030.

In addition to infrastructure improvements, the project includes introducing advanced power management systems and software, technical training for system operators, and programs promoting female participation in STEM fields within the energy sector.

“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," stated Olivier Jacques, Ambassador of Canada to Guatemala and High Commissioner of Canada to Belize.

Funding for this $58.4 million project comes from a $50 million loan from the World Bank’s International Bank for Reconstruction and Development along with an $8.2 million loan and a $0.2 million grant from Canada's Clean Energy and Forests Climate Facility.