BEL seeks an emergency declaration due to a major electricity shortfall

It was one week ago when the energy decision-makers sat at a head table to tell the media of the crisis Belize currently faces. Fast-forward to today, and the Belize Electricity Limited (BEL) is calling for a declaration of an anticipated emergency in generation services.  The utility company has formally notified the Public Utilities Commission (PUC) that Belize is expected to face a material shortfall in electricity generation within the next twelve months. The company is asking the PUC to secure the Government’s approval for the emergency declaration, which would allow the process of procuring additional generation capacity to begin.  The request comes amid growing concern over Belize’s ability to meet rising electricity demand, particularly when supplies from Mexico are restricted and local generating facilities are unable to produce enough power. During last week’s press conference, BEL Executive Chairman Lynn Young warned that the country’s energy situation had reached a critical point.

Lynn Young, Executive Chairman, BEL: “CFE cannot supply all our power by the way. We only get 51 megawatts from them, and our peak is about 130. So we have to have in-country generation to meet some of it. But when they curtail us we have to find out 51 locally. We bring on the gas turbines, like I said. And even with the gas turbines if they cannot supply anything, then we have to resort to load shedding. It’s been a while since we added generation to our system. It might have looked like a good decision back then because CFE was cheap and reliable and now when CFE isn’t working. But we all make decisions based on the information we have at the time. I think we are in very unique difficult circumstances right now. I’ve said that, right? I think one person said it’s a crisis and I agreed. I think when we are in these kind of situations we have to work together to get out of it. It’s not going to be easy but a lot of this is being caused by external things that’s happening outside the country that’s affecting all of us. It’s affecting all of us, not only electricity, but like you said, the bus fare, the BTL situation or whatever. And the reality is that no company can provide good service if it’s losing money. Never seen a company provide good service and losing money. So some of what is happening with us is the fact that the company is trying to get back on its feet. I think the way forward is being honest about the challenges that we face, be upfront about the solutions we are trying to provide, understanding that yeah we want to help everybody but we are a country with limited resources. Like Minister said it’s not like robbing Peter to pay Paul it’s a question of trying to get our priorities right.”

In simple terms, BEL says Belize may not have enough electricity to meet demand beginning next year. The rented diesel generators currently helping to keep the national grid supplied are expected to be removed in February 2027.  Without those generators, Belize could face electricity shortages during eight months of 2027. The most serious shortage is projected for March, when the country could be short by approximately twenty percent of the electricity needed during periods of highest demand.  The outlook is even more concerning for 2028. BEL predicts that the country may not have enough dependable generating capacity to meet peak demand in any month that year. By September, the shortfall could reach twenty-three percent.

The problem is compounded by reliability issues at the BAPCOL power plant, which BEL says has not consistently delivered the electricity expected from it over the past three years.  Large solar and battery-storage projects are planned, but they are not expected to begin supplying power until 2029 and could face delays.  BEL therefore needs additional temporary generating capacity to fill the gap between 2027 and the completion of those projects. The requested emergency declaration would allow the company to move more quickly to secure that power and reduce the likelihood of further load shedding.  BEL has not yet identified a specific source for additional electricity.  The emergency declaration would allow BEL to quickly invite proposals from companies capable of supplying temporary generation.