Belize Advances Renewable Energy Future with Utility-Scale Solar Project Backed by IFC and Global Partners

The proposed solar plant will have a capacity ranging between 50 and 80 megawatts (MW) and is expected to be operational by 2027.

In a significant step toward enhancing energy security and affordability, the Government of Belize is collaborating with the International Finance Corporation (IFC), a member of the World Bank Group, to attract private investment for the country’s first utility-scale solar power plant. This ambitious project is poised to provide clean, cost-effective energy for approximately 20,000 households while also bolstering business competitiveness through lower electricity costs.

The initiative is part of Belize’s broader strategy to increase renewable energy generation capacity by 75% by 2030, reducing its heavy dependence on fossil fuel imports and mitigating the impacts of climate change. The solar project, a pioneering public-private partnership (PPP) in Belize’s energy sector, will help the country transition toward a sustainable and resilient power infrastructure.

Project Scope and Strategic Impact

The proposed solar plant will have a capacity ranging between 50 and 80 megawatts (MW) and is expected to be operational by 2027. IFC will serve as the Lead Transaction Advisor, spearheading an open and competitive tendering process to identify a qualified private sector operator responsible for the development, financing, construction, and operation of the plant.

Belize currently relies on a mix of imported electricity and domestic energy production, leaving it vulnerable to fluctuations in global fuel prices and supply chain disruptions. By developing solar energy infrastructure, the government aims to curb foreign exchange outflows used for energy imports and stabilize electricity costs for consumers and businesses. This project will serve as a model for future renewable energy investments, attracting capital and expertise to further modernize Belize’s power sector.

Government and International Support

Highlighting the significance of the project, Christopher Coye, Belize’s Minister of State in the Ministry of Finance, Economic Development & Investment, stated:

“The reliance on electricity and fossil fuel imports and the severity of climate-related events have led to volatile energy prices, which impact tariff affordability for the population and business competitiveness while affecting energy security. This project will help us develop clean energy resources and strengthen the climate resilience of our country’s electricity system.”

In addition to the IFC’s role in structuring the tender and attracting investment, the World Bank will fund the acquisition and deployment of a 40 MW Battery Energy Storage System (BESS). This system will be crucial for integrating renewable energy sources into Belize’s national grid, ensuring reliability and efficient energy distribution.

Furthermore, the Government of Japan is providing financial support through a grant that will fund expert consultants and implementation activities. This collaboration underscores Belize’s commitment to a multi-stakeholder approach in building a more sustainable energy sector with minimal fiscal burden on the government.

A Transformative Milestone for Belize’s Energy Landscape

Ronke-Amoni Ogunsulire, IFC’s Regional Manager for the Caribbean, emphasized the far-reaching implications of this initiative:

“This project marks a crucial advancement toward Belize's renewable energy targets and aligns with the country's ambition to boost its solar capacity from less than 1 MW today to an impressive 180 MW by 2042. Additionally, it is expected to draw private sector investments, which will subsequently foster job creation for the local workforce.”

By leveraging private sector participation, Belize aims to not only expand its renewable energy infrastructure but also generate employment opportunities and build local expertise in solar energy deployment. The project is expected to create jobs during both the construction and operational phases, further stimulating economic growth.

Toward a Sustainable and Resilient Energy Future

The successful implementation of this solar power project will mark a turning point for Belize’s energy transition, demonstrating the viability of public-private partnerships in advancing national development goals. With the support of international financial institutions and strategic partnerships, Belize is positioning itself as a regional leader in renewable energy adoption.

As global energy markets face increasing uncertainty and climate change accelerates the need for sustainable solutions, Belize’s forward-looking approach will serve as a blueprint for other nations seeking to enhance their energy security through clean energy investments. This initiative represents not just an economic investment, but a commitment to a greener, more resilient future for the people of Belize.