BEL Signs new Power Purchase Agreement

Chalillo was a point of bitter contention, but a new power purchase agreement between BEL and a subsidiary of BSI to produce energy form bagasse should go down with a spoonful of sugar. Belize co-generation energy, BELCOGEN, will supply 13.5 megawatts of power and associated energy to BEL at a cost of US$0.78. But while the agreement has been signed it will not come into effect up until 2007 since the power station is not yet set up. The plan is to construct the generating facility adjacent to the Tower Hill factory and energy will be produced through the use of bagasse bi-product as a fuel source during the yearly sugar cane season. It is expected that 90% of power generated will come from this while the remaining 10% will be derived from fossil fuel. Back in 2001 BEL asked for tenders for the supply of 18 megawatts of electricity from independent power producers, BELCOGEN is one of the respondents along with Hydro Maya that is expected to supply 2.8 megawatts at a cost of $0.68 per kilo watt hour by December of 2006.