Cost of Power Soars by 18.1% to $191.2 Million in 2023
Strategic Energy Plan: Introducing the Least Cost System Expansion Plan 2023-2042 (LCEP)
In 2023, the cost of power rose by 18.1% to $191.2 million, up from $161.2 million in 2022. This increase was driven by both higher energy purchase volumes and a rise in the average unit cost of power, which escalated from 27.03 cents to 29.15 cents. Prolonged heat and reduced rainfall in key catchment areas intensified these challenges, resulting in a 27% decline in output from hydroelectric and cogeneration plants, while demand rose by 5%, surpassing anticipated growth levels. To address the shortfall, BEL increased energy imports to 57% of total needs, up from 47% in 2022, and escalated energy production from fossil fuel plants. Despite a modest rise in the cost of imported energy, the substantial reliance on imports and fossil fuel led to an overall increase in the unit cost of power.
To create a more sustainable and cost-efficient energy future, BEL has introduced the Least Cost System Expansion Plan (LCEP) 2023–2042. This plan aims to stabilize the cost of power below $0.25 per kilowatt-hour (kWh), boost local generation capacity to 30% above peak demand, and increase the contribution of green energy to over 75% of the total energy mix by 2030.
Key initiatives include completed upgrades to the Westlake Gas Turbine and the installation of a mobile gas turbine in San Pedro. Over the medium term, BEL, in collaboration with the Government of Belize, plans to commission several utility-scale solar power plants and deploy battery storage systems to strengthen energy resilience and drive towards a greener and more stable energy infrastructure.
