Solar energy

Solar Energy Production

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Solar Energy Production

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Alternative Energy
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
103,000 customer accounts in Belize
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Climate Action (SDG 13) Affordable and Clean Energy (SDG 7)

Business Model Description

Investment in an additional 40MW of utility scale solar in which project developers will be paid for energy sold to the grid at a predetermined price set out in a Power Purchase Agreement.

Expected Impact

Positively contributes to global share of renewable energy and reduces reliance on fossil fuels that contribute to global warming and other negative impacts on the environment.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Belize: Southern and central region
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Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Renewable Resources and Alternative Energy

Almost half of the energy in Belize comes from hydropower and from Mexico's Federal Energy Commission- average domestic renewable energy supplies accounted for 49% of total generation, while energy imports from Mexico accounted for 43% and fossil fuel generation the remaining 8% which indicates that there is a high dependence on energy from external sources, identifying the need to transition to cleaner and and alternative energy

Sub Sector

Alternative Energy

Utility-scale solar projects have the potential of providing affordable and clean energy for Belizeans while also reducing the dependency on foreign energy supply. As an independent power producer (IPP) a long-term power purchase agreement (PPA) can establish the Levelized Cost of Electricity (LCOE) which is based on the total installed cost (TIC), financing costs and the required operational and maintenance costs. This forms the rate at which the IPP/Developer will sell energy to the grid.

Industry

Solar Technology and Project Developers

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Solar Energy Production

40MW Utility-scale Solar Project
Business Model

Investment in an additional 40MW of utility scale solar in which project developers will be paid for energy sold to the grid at a predetermined price set out in a Power Purchase Agreement.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

103,000 customer accounts in Belize

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

103,000 customer accounts

As of the end of 2020, Belize Electricity Limited currently serves 103,000 customers who could potentially utilise solar energy.

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

5% - 10%

The returns are based on secondary research (IRENA and Belize Electricity Limited) that were used to develop a financial model for the utility scale solar project.

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Long Term (10+ years)

Given the size of the investment, the investment timeframe may take from 10-12 years.

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

Solar energy production typically require large tracts of land, require extensive system design and engineering and procurement costs.

Market - Highly Regulated

Only licensed and authorized Independent Power Producers can generate power in Belize. Licensing must be obtained through the Public Utilities Commission that also has significant control over rate setting.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Purchasing power from CFE exposes Belizean consumers to price shocks and disruptions that arise in Mexico. Increasing domestic generation would help to reduce cost of power volatility and in particular solar generation would help to reduce/offset carbon emissions.

Gender & Marginalisation

Single parent households which are primarily headed by women, would have access to more affordable electricity rates.

Expected Development Outcome

A utility-scale solar project to increase the share of renewable energy consumption as share of total energy consumption - currently stands at 55% in Belize. The completed project can increase the share of renewable energy consumption by 10 percentage points under current demand scenarios. Additionally, a utility-scale project would improve access to affordable energy rates

Gender & Marginalisation

Will contribute to more affordable electricity rates which will benefit underserved and low income households.

Primary SDGs addressed

Climate Action (SDG 13)
13 - Climate Action

13.2.2 Total greenhouse gas emissions per year

Current Value

Total greenhouse gas emissions (kt of CO2 equivalent) in Belize was 1,194.71 in 2017

Target Value

Reduce GHG emissions and increase GHG removals related to land use change totalling 2,053 KtCO2e11 cumulative over the period from 2021 to 2030

Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

7.2.1 Renewable energy share in the total final energy consumption

7.b.1 Installed renewable energy-generating capacity in developing countries (in watts per capita)

Current Value

7.2.1 - The share of renewable energy in the total final energy consumption is 55%. 7.b.1Currently 90kW per capita of renewable energy produced.

Target Value

7.2.1 -75% share of renewable energy in the total final energy consumption. 7.b.1107kW per capita once project completed.

Directly impacted stakeholders

People

Benefit from more affordable rates and cleaner energy, approximately 103,000 customers

Planet

Benefits from less reliance on 'dirty' energy from non-renewable sources including coal and petroleum.

Public sector

Receives private sector mobilization towards national sustainability priorities.

Outcome Risks

Limited potential for negative impacts.

Impact Risks

Potential for external risks such as high capital costs and procedural difficulties for solar installation may slow down project development and energy production.

Impact Classification

C—Contribute to Solutions

What

Affordable energy distribution.

Who

Persons who do not have access to electricity.

Risk

Limited potential netagive risk.

Impact Thesis

Positively contributes to global share of renewable energy and reduces reliance on fossil fuels that contribute to global warming and other negative impacts on the environment.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Greater recognition of the need to increase renewable energy production to minimize dependence on foreign energy which exposes Belizean consumers to external-market shocks. In addition Belize’s Nationally Determined Contributions (2021) call for: 75% of generation from renewables by 2030 Installation of 40MW of utility-scale solar by 2025

Financial Environment

Long-term Power Purchase Agreements (PPAs) reduce risk for investors and ensure steady returns over the life of the investment.

Regulatory Environment

The PUC is responsible for regulating all public utilities in Belize (electricity, water and telecommunications). Regulatory authority for the electricity sector is derived from the Public Utilities Commission Act, Belize Electricity Act Belize Electricity Limited is licensed to transmit and distribute electricity throughout Belize IPPs are licensed to generate electricity by the PUC

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Government

Ministry of Public Utilities (Ministry of Energy) - responsible for setting national energy policy.

Public-Private Partnership

Belize Electricity Limited is the country's transmission and distribution company maintains and operates a national grid. The Government of Belize (GOB) has direct ownership of 32.6% interest in the Company, whilst the Social Security Board (SSB) owns 31.2% resulting in public sector interest of 63.8%. Fortis Cayman Inc. owns 33.3% interest and over 1,500 small shareholders own the remaining 2.9% interest in ordinary shares.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map

Belize: Southern and central region

Southern and Central Belize have the best which have the best photovoltaic electricity output Only 55% of energy consumed in Belize is generated locally from renewable resources.

References

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