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Belize Energy Sector Diagnostic PUC 50 5.0 DOMESTIC ENERGY POLICY 5.1 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 following constitute the key policy features of the energy sector landscape in Belize. Notably however, these are concentrated in the electricity sub-sector and include: • Privatization, Regulation, Competition and International Trade: The market landscape of the electricity industry in Belize is one of privatized dominant distributor (BEL), and a few independent power producers (BECOL and CFE). Since electricity is purchased from CFE, a Mexican company, international trade is part of the equation. Such a structure also represents the unbundling however incipient, of the electricity sub-sector and introduces competition. Oversight and regulation of all market and economic activity in the electricity industry is the responsibility of the Public Utilities Commission. Electricity pricing in particular is well regulated and codified in a number of laws including the “Amended 1992 Electricity Act, the Public Utilities Commission Act of 1999, and the Electricity Tariffs, Charges and Quality of Service Standards By-Laws of 2001.”157 These principles are also a part of the market landscape of the petroleum products industries. Private distributors exist in both the petroleum products and LPG industries and while the petroleum products market is dominated by a single distributor, competition is encouraged. Competition is healthier in the LPG industry with four key distributors. As a non oil producing country, participation in international trade (imports) is a requirement of both industries. Regulation, while not as balanced or robust as in the electricity sub-sector is present. Price regulation, carried out by separate government ministries, is a key feature of the market structure for both petroleum products and LPGs. Regulation, beyond pricing, is extremely limited and without the benefit of a focused regulatory organization. • Pursuit of alternatives to fossil fuels: Motivated by the lack of control over the cost of fossil fuels and of energy security, over the last decade activities in the sector have focused on the search for alternatives to fossil fuels. In this regard, BEL has “continued to pursue the development of more hydropower ... as well as more power generated from biomass.158 Prior to privatization of BEB, a Renewable Energy Study was undertaken as part of the Power I Project with the subsequent recommendation that a hydro development be pursued along the Macal River in the Cayo District.159 After privatization, BEL undertook the Power II Project “designed to synchronize the Belize Power System to the Mexican Grid and to expand new power supply into Belize.”160 Currently the country’s peak demand of approximately 54 MW, is sourced with “hydro energy from BECOL, 157 Ibid, page 7. 158 Belize Electricity Limited Annual Report 2002, page 4. 159 Chalillo HydroPower: Project Summary (October 2001), page 6. 160 Ibid, page 6.PDF Image | Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic
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