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Belize Energy Sector Diagnostic PUC 49 To complete the discussion on the subject Annex 6 provides a matrix of the RET priorities recommended for Belize. Barriers Despite the encouraging technical prognosis for RETs however, 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/re-investment 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 subsidies155 and fiscal incentive programs156 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. 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. 155 i.e. one-time assistance to encourage grid extension or development of a local supply 156 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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