By Breaking Belize News Staff: Belize Electricity Limited (BEL) could save as much as $27 million to $28 million annually in electricity generation costs if several smaller solar projects are brought online as planned, Executive Chairman Lynn Young revealed during Wednesday’s virtual press conference.
Young said BEL is accelerating efforts to introduce additional solar generation as the company struggles with expensive diesel-powered electricity, reduced hydroelectric production and continued uncertainty over electricity imports from Mexico.
According to Young, BEL has already received Public Utilities Commission (PUC) approval for two solar projects and is seeking approval for a third. He expressed hope that one of the projects could begin supplying electricity by the end of December.
The chairman said electricity from the proposed solar facilities would cost approximately 13 Belize cents per kilowatt-hour, substantially less than the cost of diesel generation, which he estimated at approximately 75 cents to $1 per kilowatt-hour depending on the equipment being used.
Young explained that the new projects could allow BEL to reduce its dependence on expensive emergency generators and potentially discontinue some temporary diesel generation arrangements.
However, he acknowledged that solar power alone cannot resolve Belize’s electricity supply challenges because the country’s most expensive period for electricity purchases generally occurs between 6 p.m. and 9 p.m., when solar generation is unavailable.
Battery storage, he explained, is therefore essential to allowing electricity generated during daylight hours to be used during evening demand peaks.
Young said larger solar and battery projects are expected around 2028, although he warned that international supply-chain constraints, lengthy equipment delivery schedules and the complexity of electricity infrastructure development could cause further delays.
The comments come after Prime Minister John Briceño criticized delays affecting the World Bank-supported battery storage project, arguing that the setback had weakened Belize’s energy security.
The World Bank-backed Belize Energy Resilience and Sustainability Project, approved in January 2025, includes battery storage installations intended to improve electricity reliability and reduce system costs.
Separately, BEL has been pursuing major renewable energy investments, while the government has sought additional international financing. Earlier this month, BBN reported that Saudi Arabia’s finance minister had agreed to review a delayed US$77 million solar energy loan.
Young emphasized that large electricity projects can take several years to move from initial planning to completion because of financing negotiations, engineering designs, equipment procurement and construction requirements.
He said smaller solar projects are being prioritized precisely because they can be developed more quickly and provide earlier relief from the cost of diesel generation.
The chairman also disclosed that BEL has reduced its capital expenditure from approximately $100 million last year to around $70 million this year because of financial pressures.
That reduction has contributed to delays in the rollout of electric vehicle charging stations, although Young said BEL remains committed to supporting the country’s transition away from gasoline and diesel-powered transportation.
He maintained that bringing cheaper renewable electricity into the national grid remains the most effective long-term solution to BEL’s financial difficulties and the pressure on consumer electricity rates.
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By Breaking Belize News Staff: Belize Electricity Limited (BEL) could save as much as $27 million to $28 million annually in electricity generation costs if several smaller solar projects are brought online as planned, Executive Chairman Lynn Young revealed during Wednesday’s virtual press conference. Young said BEL is accelerating efforts to introduce additional solar generation
The post BEL chairman says new solar projects could save up to $28 million annually as utility races to reduce diesel dependence appeared first on Belize News and Opinion on www.breakingbelizenews.com.
