A US$40 million grant has been approved through the Millennium Challenge Corporation (MCC) to significantly strengthen electricity generation and distribution in San Pedro Town, Ambergris Caye. Belize Electricity Limited (BEL) welcomed the funding, which will assist the company with its project to install a second submarine power cable connecting the island to the national grid. BEL noted that San Pedro’s electricity demand continues to rise as the country’s premier tourism destination expands.
BEL Executive Chairman Lynn Young said the utility company has already invested millions of dollars over the years to ensure a reliable power supply for island residents and the tourism sector. Young explained that one of the major upgrades completed on Ambergris Caye was the installation of a gas turbine to increase generation capacity and meet growing electricity demands. The gas turbine has been operational since December 2024, supplying the island with an additional 21 megawatts of power.
The infrastructure became necessary because the existing submarine cable connecting the island to the national grid was struggling to meet peak electricity demand. The cable is limited to 17 megawatts and was approaching its maximum capacity due to Ambergris Caye’s rapid growth.
Young shared that the scale of development on Ambergris Caye has exceeded many of the power company’s earlier projections, necessitating urgent energy solutions. He explained that the gas turbine is used only when electricity demand exceeds the submarine cable’s capacity. “For most of the day, you do not need the gas turbine because the submarine cable can still handle the demand, but for a few hours when the demand surpasses the cable’s capacity, the gas turbine comes online,” Young explained.
He noted that because the gas turbine is only required for a few hours each day, the company believes installing a second submarine cable is the best long-term solution. “We are working with the MCC project to install the second cable,” Young said. “We are getting a US$40 million grant for the project. Installing the submarine cable will cost around BZ$120 million. That is a huge investment that we have to make because of the importance of San Pedro to our economy.”
The MCC grant is being viewed as a significant contribution toward strengthening the country’s power infrastructure.
Belize’s largest source of imported electricity remains Mexico. When Mexico faces energy supply challenges, Belize can experience electricity shortages, particularly during the hotter, drier months of the year. In 2025, the country experienced periods of load shedding, leaving several communities without power at certain times of the day. While the gas turbine helped support San Pedro’s electricity needs, extended outages still affected some areas of the island.
To better prepare for such situations, several hotels maintain backup generators to ensure uninterrupted service for their guests. Tourism stakeholders on the island welcome the proposed investment and hope emergency generators will only be needed during planned outages required for the maintenance and upgrading of BEL’s infrastructure and services.
The MCC was established in 2004 and has partnered with more than 40 developing countries. It is recognized as one of the world’s most transparent bilateral agencies, providing time-limited grants to countries that meet rigorous standards for good governance, anti-corruption efforts, and respect for democratic rights.