Keeping the lights on is becoming increasingly expensive, and Belizean businesses are carrying much of that burden. With commercial customers consuming fifty-seven percent of the country’s electricity, business leaders are demanding answers about rising costs, reliability and what lies ahead during another difficult dry season. Those concerns came to the forefront Tuesday night at an Energy Business Mixer hosted by Belize Electricity Limited, in partnership with the Belize Chamber of Commerce and Industry. Benita Keme-Palacio reports.
Sean Fuller
Sean Fuller, General Manager, Finance & Business Support, BEL
“From now to mid-2027, it’s going to be tight, but manageable. The hardest stretch is next year’s dry season between March and May, when hydro is low and the demand is the highest.”
For the business community, reliable electricity is not optional. It keeps offices open, factories running and Belize’s service-based economy moving. But Belize Electricity Limited says maintaining that reliability now comes at a steep price.
Lynn Young
Lynn Young, Executive Chairman, BEL
“We end up with a situation where it’s important for us to keep the lights on. And as the conversation I had with the cabinet, I said, the only thing worse than expensive electricity is no electricity, especially in a service economy. So we have to try and strike that balance between keeping the rates affordable but ensuring that we keep reliable electricity.”
BEL says a “triple shock” pushed the electricity system to its limits in 2026. Prolonged drought cut hydroelectric production by twenty-five percent. At the same time, Mexican power supplier CFE restricted imports during one hundred and eighty-one peak evening hours and increased prices by thirty-eight percent. To avoid widespread outages, BEL turned to emergency diesel generation. But that power costs as much as ninety cents per kilowatt-hour, more than twice the average forty-four-cent rate charged to customers. BEL says that gap contributed to a forty million dollars net loss as of September.
Sheena Kuylen Simpson
Sheena Kuylen Simpson, GM Energy Markets, BEL
“Even though we have the impact of drought and lower hydro production, we still have generation in-country to support the load. BEL has not officially issued any release saying that power would be out for any extended period.”
BEL is now betting on solar power and battery storage to reduce its dependence on costly diesel. The first fourteen-megawatt solar facility is expected to begin operating in December. By late 2027, the utility plans to add sixty-five megawatts of solar generation and forty megawatts of battery storage. Officials believe those projects could reduce bulk energy costs by twenty-five percent between 2027 and 2028, but the immediate challenge remains getting through the next dry season without major disruptions.
Sheena Kuylen Simpson
“For the first solar project coming online late December, the shipment has already arrived in-country. Under the emergency plan, financing is already secured, so we don’t believe there will be any slippage in getting that first project running.”
BEL says pairing solar energy with battery storage will provide more stable power and protect customers from sharp swings in fuel prices.
Sean Fuller
“The things needed to take that swing out, first, the biggest, replace diesel. Solar and batteries on long-term contracts don’t move with the price of fuel. If you remember one line from tonight, it is that, and less diesel means less volatility for the customer.
For businesses, however, the relief will not come overnight. Power supply is expected to remain tight through mid-2027, with the greatest pressure anticipated between March and May. BEL says it will begin providing quarterly updates through the BCCI next year and assign dedicated account managers to large commercial customers. Benita Keme-Palacio for News Five.
Attention readers: This online newscast is a direct transcript of our evening television broadcast. When speakers use Kriol, we have carefully rendered their words using a standard spelling system.
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