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Belize Energy Sector Diagnostic PUC 41 Another significant benefit of access to modern energy services worthy of mention is that well improved lighting, versus candlelight, enables adults and children of both sexes to study after their daytime activities improving educational attainment and extending productive pursuits. Energy and Economic Development Inextricably linked to the gains in social development are the broader gains in general economic development. An improvement in living standards as a result of access to energy services has a direct correlation with job creation and productivity. According to the World Bank, energy consumption shows a direct correlation with national income i.e. most economic activity would be impossible without energy, even the small and medium enterprises which are the main source of new jobs for the poor.129 The challenge for Belize then is to augment its development process by providing access to modern energy services to as many of its people as possible without compromising macroeconomic stability or energy security objectives. RETs can play a key role here. Thus when viewed in the broader context, for Belize diversifying energy supply sources is a key consideration. A move away from diesel generation to renewable energy technologies in the electricity sub-sector for example could positively impact economic activity by lowering dependence on one or two finite primary forms of energy and by reducing the heavy economic and security burden related to energy imports. In the transportation sub-sector, a policy that mandates the use of biofuels may be an alternative to reduce the dependency on gasoline and diesel imports and improve emissions. Energy Supply Security Currently, Belize imports 100% of the fossil fuels and 50% of the electricity used in its service. Belize does benefit from a small, emerging fuel re-export market. Enabled by attractive EPZ legislation130, air and bus travel and the proximity of neighbouring countries, fuel importers in 2002 were able to re-export roughly 1.6% of the value imported or just less than 7% of the total quantity of petroleum imports. Aviation and jet fuel, diesel and kerosene were the most popular re-export products.131 According to National Energy Plan Project, Belize is able to produce roughly 29% of its energy needs132. The remainder 71%, mainly fossil fuels, relies directly on imports from the United States and Mexico. In the electricity sub-sector, roughly 20% of the local response to electricity demand relies on fossil fuels133. Of the 50% imported from 129 World Bank, ibid, pg 9 130 which provides for exemption from all import and export duties and taxes on fuel imported into the EPZ, provided it is not retailed in the domestic market, Export Processing Zone Act of 1990 (rev. 2000) 131 Please note that this information was included because due diligence required it. However there were discernable in congruities in the figures and any conclusion afforded by these figures is suspect. For example, Aviation Spirit was reported to have less imports than re-exports and if the values are to be trusted in very many cases Belize buys for much more than it sells. A search for information from all known available sources could not inform this issue. This suggests serious problems with the validity of data and regrettably contaminates the conclusions 132 The authors recognise the value of energy use figures to the quality of the analysis but previous use figures incorporated in the PUC’s energy balance were discarded because of the inability to credibly quantify wood use. Access to a credible source on wood use in Belize would have augmented the analysis greatly. 133 includes BEL at 13% and private diesel (7%).PDF Image | Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic
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