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 45 August 2003 greatest black out in history, power interruptions cost as much as $80 billion annually.146 For developing countries, the energy security provided by RETs makes them attractive in rural areas, while simultaneously offering a clean “leap” over fossil fuels. The modular and distributed nature of RETs can also reduce the need for upgrading electricity distribution systems, or for expanding distribution or transmission capacity. RETs can also provide regional and local job opportunities, particularly in rural areas. This can contribute to the stability of local communities, which then slows urbanization— a particular problem for many already overcrowded cities in developing countries. In addition, if energy is locally produced, money is invested in the local community and not exported, although RET products and services can be exported. All of these impacts can create an increase in local tax revenues, which can then create a more diversified tax base. In terms of electricity generation, RETs are more employment intensive than fossil fuel or nuclear options.147 For example, RETs are up to three times more employment- intensive than fossil fuel power options:188 worker-years are created locally for every megawatt of small solar electric systems. Limitations of RETs The major limitation of RETs lies in the intermittent and site-specific nature of the energy source. Solar cells, for example, generate electricity only when light is available, and wind generators operate only when there is sufficient wind. However, even though such resources are intermittent, they are often highly predictable. In terms of electricity, most modern grid systems can absorb up to about twenty percent of their capacity from intermittent generating sources such as wind. Even this limitation can often be overcome with the right mix of technology. For example, wind energy and photovoltaic systems, when combined with some form of energy storage such as a hydropower reservoir, can provide a much higher percentage of electricity in a grid system. Crops harvested on a continuous basis can often fuel biomass energy systems, and solar water heaters can store heated water in a tank for later use. Another key issue that can limit RETs is the need to establish trained support where RETs are installed. Experience has shown that many failures have resulted from lack of maintenance or inappropriate operation. RETs are also at different stages in their development and therefore may have technical limitations. Many of these limitations, however, are being continuously overcome with further research and development (R&D). Renewable Energy Costs/kWh RETs can be very competitive across several technologies and applications, even where there is no internalization of externalities. RETs offer cost-effective solutions. RETs are site specific, therefore there are a range of cost / kWh, depending on the availability of the resource. The following chart summarizes current levelized costs: 146 Dunn, S. 2000. Micropower: The Next Electrical Era, Worldwatch Paper 151, Worldwatch Institute. ISBN 1- 87807-53-x. 147 ibid, UNEP 2000

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