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Belize Energy Sector Diagnostic PUC 10 Insufficient Capacity Belize does not have sufficient human and institutional capacity to promote RETs. Additionally, some of the RET projects undertaken are of poor quality due in part to unreliable components, inappropriate design, improper installation and poor maintenance. Unarticulated or poor standards persist and contribute to the poor quality of some RET projects. Domestic Energy Policy Upon review, it seems apparent that an energy policy does not exist in Belize. However, while an explicit, articulated national energy policy is not available, de facto there is an implicit one. The main features of the Belize energy sector (i.e. privatisation, regulation, competition, international trade, pursuit of alternatives to fossil fuels and subsidies), suggest an implicit policy predicated on the use of fossil fuels. Although the energy balance is shifting to include renewable energies, it is only in the electricity sub- sector. Additionally, the shift is cautious and not the result of a deliberate policy objective but of industry practitioners concerned about unfavourable oil market conditions and costs5. Indeed the move toward renewable energies may be prejudiced by existing disaggregated sub-sector policies that welcome competition and private sector involvement, but do not comment on method or scale, encourages price regulation in all sub-sectors (for tax revenue generation or private industry control) and consumption subsidies in the electricity sector. Furthermore, if these are the core tenets of the country’s energy policy, then it is important to point out that the policy is incongruent with other development strategies and that there are important omissions in the policy space. For example in some instances current energy practices are contrary to or fall short of Belize’s sustainable development and environmental policies. While Belize has signed on to and made commitments under a number of international conventions, protocols and agreements aimed at reducing greenhouse gases and protecting the ozone layer (see below), its energy balance continues to reflect a heavy reliance on fossil fuels. Furthermore, although a recent energy balance study has shown an increase in the application of renewable energy technologies, the use of traditional biomass as a source of energy continues to be a factor.6 Sourcing of wood and other naturally occurring biomass materials is bound to have an added deleterious effect on the environment. Belize currently sources 50% of its electricity from CFE in Mexico. This suggests a willingness to un-bundle the electricity supply chain in Belize and to do so by engaging in regional cross border trade if necessary. In competitive markets, important services aspects of the electricity supply chain can be isolated, where different suppliers intervene at different levels of the supply chain. While competition and unbundling of the supply chain appears to be a deliberate strategy for the Belize electricity industry, the policy is less clear on the extent to which the market can tolerate and thus regulation and attendant legislation will encourage competition in unbundled electricity supply. In a competitive environment, an explicit regulatory system must be established either to delimit the scope of free play of market forces or to replace them whenever it is deemed 5 Suggesting only that the issue is not one of commitment to renewable energies or sustainable development but rather to cost reduction and liability mitigation. 6 It is worthy of note that this is probably a greater factor than could be ascertained for this report.PDF Image | Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic
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