Belize energy supply and financial instability

Belize Electricity Limited (BEL) has been navigating significant financial and operational challenges regarding its energy supply. The company reported a debt of approximately $30 million to Mexico’s state-owned supplier, Comisión Federal de Electricidad (CFE), with $20 million of that amount overdue. This financial strain is attributed to electricity costs frequently exceeding the rates collected by BEL.

Following these financial difficulties, the nation experienced a nationwide blackout caused by a sudden drop in electricity supply from CFE. The disruption led to a collapse of the national grid when local generation could not meet evening demand, resulting in a 19-megawatt shortfall. While power was gradually restored after CFE resumed supply, BEL has warned of potential future load shedding due to limited domestic resources, seasonal renewable energy fluctuations, and maintenance issues.

To mitigate risks associated with CFE supply fluctuations and environmental factors, BEL Executive Chairman Lynn Young noted that the utility has applied to the Public Utilities Commission for emergency generation.

More recently, BEL has issued warnings regarding potential power interruptions and load shedding across various communities due to a projected power shortfall. Dr. Leroy Almendarez, CEO of the Ministry of Public Utilities, explained that while Mexico serves as a backup, BEL lacks sufficient domestic reserves to meet demand when external supply is unavailable. A tentative load shedding schedule has been implemented to prioritize critical services, such as hospitals and schools, while rotating outages across regions including Belize City, San Ignacio, Dangriga, and Corozal.