Does Cuba have a comprehensive energy policy?

Currently, the global power generation sector is undergoing a massive transformation, as a result of increasing pressure to reduce carbon emissions and rapid and profound technological developments in renewable energy. Cuba lacks a detailed strategic roadmap towards a comprehensive national energy policy that addresses these challenges.

How will sanctions affect Cuba's electric power system?

The real impact of the sanctions on the island’s Electric Power System cannot be minimized. The damage to this sector, between March 2023 and February of this year, amounted to 388,239,830 dollars, according to official estimates from Cuba.

Why is the Cuban electric power system losing its operations?

The so-called thermal generation is the basis of the Cuban Electric Power System, but it suffers from the handicap of an aging and overexploited infrastructure. In addition, it has been losing part of its operations, following the withdrawal of the Mariel, Renté, Nuevitas units and the historic Tallapiedra plant in Havana.

Is there a short-term solution to Cuba's energy challenges?

There is no short-term solution to Cuba's energy challenges. The country does not have the domestic oil and natural gas resources necessary to meet its own needs and will have to continue to rely on imports of petroleum liquids and liquefied natural gas to fuel its future economic growth.

How does the Cuban power crisis affect international visitors?

Power outages not only affect the Cuban population but also international visitors. In October, several tourists were stranded in the country due to the blackouts. The crisis has also impacted crucial sectors like health and food, with refrigeration issues for medications and perishables.

How will the energy transition work in Cuba?

Cuba will require a combination of state subsidies, progressive tariffs based on consumption, more flexible legislation to attract foreign investors, and possibly offer its own resources and assets to finance the energy transition. Cuba already uses a progressive rate, but still subsidizes 89% of residential customers.