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Belize Energy Sector Diagnostic PUC 9 Renewable Energy Technologies in Belize Renewable Energy Technologies (RETs) are not new to Belize and are used both in small, isolated applications and power plants. Field and secondary research undertaken in Belize during August 2003, identified the use of hydroelectricity, stand alone solar PV, small wind electricity generation, solar thermal (water heating), hybrid systems (diesel/PV or diesel/wind), biomass cogeneration and methane production by small scale biodigesters1. It also appears that there is a potential for geothermal energy since hot springs have been identified in the country and the established sugar industry may have the potential to produce ethanol. A distinct conclusion of the field research was that electricity generation from renewable energy sources is technically, environmentally and economically feasible in Belize. According to Dr. Ivan Azurdia of Fundacion Solar2, over the next ten years Belize can add 80 MW of renewable energy (35MW of hydro, 25MW of cogeneration and 20MW of wind energy) to its existing 25MW and easily satisfy the ten year projected peak electricity demand of 96.3 MW. Despite the encouraging technical prognosis for RET development, there are also significant barriers that could limit the widespread use of RE in Belize. Dr. Azurdia discusses these and strategies to overcome them at length in Annex 7 of this report. Three are highlighted below. The Lack of a National Energy Policy Energy consumption is rapidly increasing in Belize and to satisfy burgeoning demand, policymakers often choose the most expedient option or adapt traditional practices without an appreciation of the energy supply options or the long term costs and effects. In the case of Belize, the lack of an explicit national policy that encourages the use of RE (where feasible), advances the status quo and encourages the continued use of imported fossil fuels as the most expedient energy supply option for an oil poor nation. Financial Constraints Subsidies to electricity consumption, (i.e. cross subsidies between electricity customers and government relief for losses due to the extension of the social tariff), are in effect in Belize and affect potential investment/reinvestment decisions by the electricity utility and reduces the GOB’s ability to pursue other social development goals. As demand increases consumption subsidies can become increasingly difficult to control. Additionally and perhaps more relevant here is that consumption subsidies directs the country’s limited financial resources away from electricity access subsidies3 and fiscal incentive programs4 that can be used to drive the development of RETs. Also a challenge to RE development in Belize is the inability to finance RE projects from internal revenues and to attract funding from aid agencies or private investors. 1 A biodigester is a holding tank which composts waste materials (human, animal, plant) anaerobically to produce methane gas for cooking, lighting and in sufficient quantities to fuel pumps and electric generators. 2 Dr. Azurdia was retained as the technical specialist for this diagnostic and used field visits and interviews to determine his conclusions. 3 i.e. one-time assistance to encourage grid extension or development of a local supply 4 Such as investment grants and investment tax creditsPDF Image | Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic
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