Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic

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Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic ( energy-sustainable-development-toward-national-energy-strate )

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Belize Energy Sector Diagnostic PUC 7 EXECUTIVE SUMMARY In July of 2003, The Public Utilities Commission, under the auspices of the United Nations Development Programme (UNDP) and the Government of Belize retained Launchpad Consulting to perform a sector diagnostic of the energy sector in Belize. A significant portion of the exercise was to include a review of the technical specifics of the sector and an analysis of the context for renewable energies in Belize. Presented herein are the findings of the study, which was conducted from July 15 – September 15th, 2003. Summary of Key Findings: • Given the current energy mix (imports 71%, indigenous 29%), energy security and improving energy autarky should be significant issues for policymakers; • Belize does not have a formally stated energy sector strategy nor policy although an argument could be made that there is an implicit one; • The current electricity mix with 50% imported from Mexico is not sustainable given that demand is growing at 9% p.a. The Mexican supply is currently limited, and if additional supply can be negotiated (under a new contract) it is likely to be significantly more expensive; • The use of renewable energies is technically, environmentally and economically feasible and given the exigencies of the internal and external environment, is highly recommended; • There are barriers to the use of Renewable Energy Technologies and to the development and implementation of a formal energy policy; • Policymakers cannot afford to disregard regional and international agreements and the significance of existing and future commitments (particularly in trade) to the development of the energy sector; • Belize needs to take immediate and decisive action if it is to comfortably meet electricity and energy demand forecasts without increasing its vulnerability and/or compromising its future development; The Context According to the World Energy Outlook 2002, there is expected to be rapid growth in the demand for energy to the year 2030, at a rate of 1.7% annually. In fact, by that time it is predicted that the world will be consuming two-thirds more energy than it did in 2002, and the developing countries will replace the industrialized world as the largest group of energy consumers. Fossil fuels, and in particular oil, will remain the dominant sources of energy, though renewable energy will increasingly contribute to power generation.

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