Belize has announced the launch of a new US$58.4 million energy project aimed at improving the country’s power supply and reliability.
The new Belize Energy Resilience and Sustainability Project is being funded through a partnership with the World Bank and the Government of Canada.
The World Bank will provide Belize with a US$50 million loan through its International Bank for Reconstruction and Development, while Canada will lend US$8.2 million.
The remaining funding comes from a US$200,000 grant from Canada Clean Energy and Forests Climate Facility.
Belize currently imports 50 per-cent of electricity used on the power grid from neighboring Mexico.
“These imports, tied to fluctuating oil and gas prices and purchased at volatile spot market rates, make electricity costs unpredictable and burden consumers. The country’s power infrastructure is also highly vulnerable to disruptions from extreme weather events, which was demonstrated during Hurricane Lisa in 2022, which left the capital without electricity and potable water,” the World Bank said.
“Combined with no new generation capacity added in over a decade despite a 48 per cent increase in peak demand, these challenges have led to planned power outages and reliability issues that impact both households and businesses across the nation.”
The project will install four 10-megawatt battery systems in key districts—San Pedro, Dangriga, Orange Walk, and Belize District—giving Belize the ability to manage its power supply, reduce outages, and optimise electricity costs for consumers.
This is especially crucial for the poorest customers, who currently spend up to 30 per cent of their pre-tax income on electricity.
The battery systems will also support the integration of renewable energy sources like solar and wind into the grid.
“This project represents a crucial milestone for Belize’s energy independence and sustainability,” said Lilia Burunciuc, World Bank Director for the Caribbean. “By investing in advanced storage solutions and renewable energy integration, we are ensuring a more reliable and affordable power supply for communities while paving the way for a greener future.”
Olivier Jacques, Ambassador of Canada to Guatemala and High Commissioner of Canada to Belize, said: “Energy security is a challenge for many nations, especially for Caribbean countries. This is why the Government of Canada is proud to support Belize in its journey towards a more resilient and sustainable future. By investing in innovative power solutions and fostering inclusive growth, we are helping to build a robust energy infrastructure that will support sustainable development and improve the quality of life for communities across Belize.”
