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Belize Energy Sector Diagnostic PUC 51 imported energy from Mexico, and energy generated from within the company.”161 There are other initiatives underway including the study of wind generated electricity. Additionally encouraged by the PUC, a recent BEL Request for Proposal (RFP) for the supply of base load generation included a “socio-economic component”162 which awarded points to applicants who proposed using renewable and/or fuels local to Belize. At the end of the process, the successful suppliers were those who proposed using renewable energy technologies to supply the required base load. These were Hydro-Maya Limited, a company operating in the Toledo District (hydro) and the BELCOGEN (co- generation (bagasse)). • Consumption and Access Subsidies. The GOB’s rural electrification program, underwritten by a $30M bzd GOB loan, is used by the electricity utility to provide electricity to remote villages and towns throughout the country. Additionally cross and consumption subsidies are in place in the price structure of the electricity utility. Thus, the main features of the Belize energy sector 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 costs163. 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.164 Sourcing of wood and other naturally occurring biomass materials is bound to have an added deleterious effect on the environment. Also, on one hand, the continued cost of importation of fossil fuels and of energy continues to have a knock on effect on the national balance of payments and Belize’s economy. In 2002 for example, the cost of importation of fossil fuels (including lubricants, diesel, gasoline, and kerosene) was approximately BZ$107 million; and the 161 BEL Annual Report 2002, page 11. 162 Request For Proposal For the Supply of Base Load Generation for the Belize Electricity Limited’s Power System, January 2002. 163 Suggesting only that the issue is not one of commitment to renewable energies or sustainable development but rather to cost reduction and liability mitigation. 164 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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