Accelerated conversion of the Cuban electrical energy system begins
It is projected to add 2,000 MW to the national generation between 2025 and 2026. Starting in June 2025, it is estimated that all daytime effects will be addressed, as a greater capacity in megawatts will be available from solar photovoltaic energy.
On February 21, Cuban President Miguel Díaz-Canel inaugurated the first of 92 photovoltaic parks being built with the help of the People’s Republic of China. These parks are expected to transform the energy matrix and alleviate the country’s electricity generation crisis. The 21.8 megawatt (MW) park, located at the School of Nursing in the municipality of Cotorro, is one of the 55 facilities anticipated to be installed in the country this year. Its contribution will help progressively reduce the bothersome blackouts during daylight hours.
Electricity generation deficit
Cuba has reported the highest electricity generation capacity deficit in recent months, perhaps years. At dawn on Thursday, February 20, a significant portion of the country was without electricity. The duration of continuous outages varies, but users on social networks in Cienfuegos, Villa Clara, and many other areas note that they experience more than 20 hours of outages locally. In Havana, the electrical system is divided into four blocks, with each block experiencing rotating outages of at least three to four hours per day.
Cuba’s maximum electrical demand is around 3,500 MW, but it often generates half or less, leading to service interruptions or blackouts. For instance, the maximum shortfall on February 23 was approximately 1,700 MW. At 8 p.m., a shortfall of more than 1,500 MW was recorded nationwide. The National Electricity System (SEN) collapsed several times in 2024. In the last months of that year, the stable supply of diesel for the economy was lost, forcing the country to seek fuel in international markets.
The primary incidents that continue to cause prolonged and frustrating blackouts typically stem from breakdowns in aging thermoelectric plants, maintenance on units, units that are out of service, and fuel shortages in distributed generation plants (diesel and fuel) and generating platforms (mobile generation). The number of platforms, which had been increasing since 2019, has diminished due to payment difficulties, resulting in a loss of 301 MW. As of now, only two platforms remain, with a combined capacity of 257 MW.
The availability of the SEN reached its lowest levels since 2019 in 2024. In recent years, five generation units have been completely or significantly lost, amounting to a third of the country’s demand. Distributed generation groups have also exhibited a clear tendency to decline: since 2020, diesel engine repairs have been inadequate, and despite incorporating 100 MW in 2023, current availability stands at 37%, according to the Ministry of Energy and Mines (MINEM).
In 2024, the national electrical system experienced three disconnections, the last of which was restored in 22 hours, and damage caused by two hurricanes.
This has a negative impact on several sectors of the economy, as the deficit restricts the country’s main production of goods and services.
The growth of maximum demand by more than 100 MW compared to 2023 also influences the situation, which is affected, among other factors, by the shortage of gas cylinders for cooking food.
The rehabilitation of Unit 6 at Mariel and Unit 1 at Felton was delayed in their schedules due to refusals received when attempting to purchase the necessary parts on the international market. Given this situation, a consequence of the U.S. pressures on these companies, we had to initiate new exchange processes, reported the MINEM.
Transition towards a more sustainable model
Currently, less than 5% of Cuba’s electricity comes from alternative sources. The goal for 2030 is 24%. Achieving the installed capacity proposed for 2031 would place Cuba at an estimated 12% photovoltaic penetration in the country’s energy generation, plus 12% from other renewable sources.
At the last session of Parliament in December 2024, the Cuban Minister of Energy and Mines, Vicente de la O Levy, explained that, due to the situation of the national electric energy system, a government plan was developed to recover the SEN as quickly as possible and meet the demand of the economy and the population.
The investments to revive the national electric energy system (SEN) will seek to meet the demands of the economy and the population, with a focus on transitioning towards energy sovereignty. In line with the national energy transition strategy, 92 parks, which will provide more than 2,000 MW of power, are planned for installation by 2028.
The new park at the School of Nursing will generate more than 37 gigawatts annually and save more than 8,140 tons of fuel. At peak times, such as midday, these parks will help meet demand and reduce blackouts.
De la O referred to the government’s program to recover the SEN, which focuses on finding financial, banking, and economic solutions; ensuring fuel supply; managing foreign relations in the sector; developing renewable energy sources; promoting efficiency; and caring for workers.
Additionally, it is proposed to recover 850 MW of capacity in distributed generation and thermoelectric plants that utilize national fuel, achieving an average availability of 1,400 MW. A project is underway to install 120 MW in photovoltaic solar parks, a donation from China.
“There are 26 photovoltaic solar parks at various stages of construction across the provinces, representing a significant construction effort for the country,” emphasized Alfredo López Valdés, general director of the Electric Union.
He mentioned that the engineering of each park is a science. Although the final results are quite similar, the electrical conditions of each location differ slightly, necessitating thorough work right from the onset of studies to select the optimal site for each park. The projects mentioned have been developed in close collaboration with universities to ensure a design that allows for proper integration into the National Electric System.
Dr. Lídice Vaillant, head of the Photovoltaic Research Laboratory of the University of Havana, explained that nearly one million photovoltaic panels have already been installed, and another 3.6 million will be installed. He stressed that in two years, the power installed in the last ten years will be multiplied by almost five times, which represents a huge leap.
The acquisition of 30,000 domestic photovoltaic systems is underway, and the recovery of the Matanzas supertanker base has commenced. The minister stated that we have secured supplies that are already in the country, and others are on their way, for the construction of the four tanks at the Matanzas supertanker base.
It is projected to incorporate 2,000 MW into national generation between 2025 and 2026. From June onwards, all the current effects will be covered because solar photovoltaic energy will provide a greater capacity in megawatts.
This program—continued De la O Levy—conceives concrete actions in the short term and, in addition to recovering distributed generation, recovers the generation of thermoelectric plants that consume fuel. To reduce generation costs, we must also work on renewable sources of energy, particularly photovoltaic energy.
As part of this strategy, Cuba has promoted the use of photovoltaic solar energy. Since the beginning of 2024, a broad investment process consisting of two projects has been initiated. The first project, with a capacity of 1,000 MW, is expected to be completed in two years. The second project, with the same generation capacity, is scheduled to be ready by 2031.
Regarding the photovoltaic solar park project, it was reported that two will be incorporated in February and six in March 2025. Starting in March 2025, an average of five parks per month will be achieved. This project has not been free of complexities; for example, 2,714 containers are sailing to Cuba with parts and pieces.
Likewise, work has been done on transferring the Ciro Redondo bioelectric plant to the UNE, and 5,000 photovoltaic systems have been contracted and will arrive next year for homes that are not yet electrified. This year, they will install almost 900 solar photovoltaic water pumping equipment, which is vital to ensuring the supply of drinking water even in blackout conditions.
The goal is to have a “diversified generation matrix, which prioritizes domestic sources, such as national crude oil, the accompanying gas from the extraction of Cuban oil, and renewable energy sources,” said engineer Lázaro Guerra Hernández, general director of Electricity of the Ministry of Energy and Mines (MINEM).
Science, innovation, organization, foresight, research, and leadership are essential elements that must be considered in executing and implementing the designed project. Cuba requires all efforts to strengthen its electrical system, and science and innovation are crucial for this.
A new law in Cuba mandates investment in renewable energy sources
Decree 110 of November 2024, which regulates the control and efficient use of energy carriers and renewable energy sources, is also part of the government strategy. This Decree requires high consumers, whether state or private entities, to invest in renewable energy sources.
According to the norm, state and private economic actors, representatives of foreign institutions, and associative forms must guarantee that half of the electricity they consume during the day is from renewable energy sources in new investments that are considered “high consumers of energy carriers.”
If they lack the conditions to install solar panels due to the infrastructure of their premises, these entities must sign contracts with the state-owned Unión Eléctrica – the guarantor of the generation, transmission, and commercialization of electric energy – and connect to photovoltaic parks.
Entities identified as high consumers – those that, in the past 12 months, average a consumption of 30,000 kilowatts (KW) or 50,000 liters of fuel – will have three years to invest in meeting the requirement of 50% of their daily consumption.
The high prices of solar panels, the challenge of securing bank loans, and the bureaucratic hurdles to acquiring them, along with the state subsidy for electricity consumption, hinder the transition to a more sustainable energy model in Cuban homes and businesses.
In the retail markets of the state-owned marketing company Copextel, a basic generation module of one kW costs 2,551 MLC (freely convertible currency, equivalent to 0.82 dollars). Félix Morfis, representative in Regla of Cubasolar, a non-governmental organization that has been promoting the use of renewable energy sources in Cuba since 1994 to replace polluting ones, told IPS: “They pay us 6 pesos (0.05 dollars) per kWh, but for the one I use, they charge me through the normal system. They sell it to me at a high price and charge me a low price. There is no incentive,” Morfis added.
Morfis mentions that a progressive rate is applied to the residential sector. After exceeding 450 KWh of accumulated consumption, it starts to cost more than seven pesos per kWh and can reach 20 pesos per kWh (about 0.17 dollars).
Another barrier to expanding solar photovoltaic energy in the residential sector is the subsidy on the electricity rate, which is charged in a devalued currency.
According to official figures, only about 6% of the more than four million Cuban households consume over 500 kilowatt-hours (kWh) each month. A household that consumes 250 kWh pays 644 pesos per month (1.89 USD), while one that consumes 500 kWh pays 1,894 pesos (5.57 USD).
According to the authorities, the price is subsidized, so the cost of electricity through the SEN is significantly lower than that of importing or purchasing solar panels in foreign currency. Ultimately, it is more profitable not to invest in renewable energy sources. One consumer explains: “I spend less than 500 pesos on electricity per month. With the cost of a panel, I can pay for electricity for over 20 years.”
Even so, because of ongoing power outages and fuel shortages, an increasing number of people are investing in solar panels with batteries, and private businesses that sell these devices have proliferated.
Rafael Betancourt is an economist and university professor. Email: rbetancourt3114@gmail.com.
*With information from Reuters, Juventud Rebelde, IPS, OnCuba.
