BEL Urges Emergency Power Declaration to Avoid Blackouts

Belize Electricity Limited (BEL) is asking for a power generation emergency to be declared, to avoid incidents of frequent blackouts like those experienced earlier this year. The company wrote to the Public Utilities Commission (PUC) on November 8, calling for the commissioner to secure the emergency declaration under the Public Utilities Commission (Request for Proposals) Regulations 2024. In its letter, BEL wrote, quote, “The analysis set out in Exhibit A of this Notice demonstrates that the expected peak electricity demand within the next twelve months will exceed available generation capacity, warranting the procurement of additional generation services beyond what currently exists or will realistically exist within the next year,” End of quote. It is quite an eye opener considering the recent rationing of electricity across the country.  Seemingly, Prime Minister John Briceno has already engaged with BEL’s CEO John Mencias on the issue.  It turns out that the emergency declaration would allow BEL to quickly secure financing to address the shortfall. PM Briceno noted that the government realizes the potential problems and had already been seeking solutions to the energy crisis. 

John Briceño, Prime Minister of Belize: “We’ve had many discussions on this and he has pointed out that under the Act that we can declare an emergency so we could quickly get people  investors to sign up for energy, and he believes that if he does that by the end of next year he could be able to have at least 60 or 80 megawatts. I don’t know the entire details. Also, I need to remind you is that we’ve had a discussion with a group of Belizeans who have partnered with an outside group that have access to bring in a ship for 80 megawatts. Now, for that 80 ship of megawatts to come into Belize and to be able to provide energy, especially during the times when we need it, probably in April, we need to be able to be able to sign a contract with them. To do that, you have to declare an emergency. All things where equal there may be, there may not be a shortage in April/May. We are doing everything possible to put everything in place to avoid that. And so when I was at the inauguration of the new president, Sheinbaum, in Mexico, I met with the new minister of energy. It was our first day in the morning along with officials from CFE and so we are at the point now where we proposed the ship because the ship is 80 megawatts, we cannot use 80 megawatts. We use what we need and then the rest we can sell it on to Mexico. So now the negotiations are starting. They finally put their team together. We have our team made up of from finance, Ministry of Energy, BEL and PUC to meet with the officials in Mexico. So it’s a number of reasons why that is just again forward planning. We don’t want to wait till you know the house is burning down to try to do anything about it.”

The Prime Minister says that regulations were tabled in the House of Representatives today as part of the government’s efforts to quickly address the problem.

John Briceño, Prime Minister of Belize: “From my view we’re trying to see how we can start the generating process to go as quickly as possible. Today we are setting up the RFP regulations for the call for proposals for energy. And we have to lay it on the table before it becomes law. And so once that becomes law then others then can come in, but it’s a longer process. So we’re trying to shortcut it quickly so we can start to put things in place so that by the end of next year we can have enough energy to be able to keep us going and forward.”

One of the recent moves by the government was to seek a place on the Central American Power Grid but the process is lengthy and would not provide an immediate solution to Belize’s shortfall./