U.S. policy also has a significant impact on Cuba''s energy sector. The report released today examines provisions of U.S. law that allow some measure of support for Cuba''s energy transition and recommends steps that the U.S. government could take to support the transition, improving daily life for the Cuban people while at the same time
Building a Cleaner, More Resilient Energy System in Cuba recommends numerous ways by which domestic policy in Cuba can prioritize working towards a more sustainable, resilient grid — especially by investing in the energy transition — and ways in which international cooperation can support these goals.
Cuba committed to generating 24% of its electricity from renewable energy sources by 2030 as part of the country''s Nationally Determined Contribution (NDC) under the Paris Agreement. Policymakers have subsequently announced their intent to increase renewable electricity generation to 37% by 2030.
We analyse the country''s proposed energy policy to achieve 24% penetration of renewable energies in electricity generation by 2030. The Cuban government has an array of policy tools, from stimulating domestic production to changing foreign investment regulations, in order to achieve its goals.
Despite Cuba''s enormous solar energy potential, the best option is to use combined solar and wind energy. However, in the absence of energy storage, solar and wind resources cannot fully meet energy demand due to their intermittency, so the full capacity of controllable sources must be maintained.
The report provides background information on Cuba''s climate and the history of its electric grid, investigates the current state of its functioning and analyzes the challenges currently facing the system. The report highlights the issue that not only is Cuba''s energy infrastructure in a precarious state of aging and disrepair, but also that its entire energy system relies heavily on external aid and imported fossil fuels.
The report also details ways in which other islands in the Caribbean, including the Bahamas and Puerto Rico, have used external investments to stimulate their own transitions towards more renewable and resilient energy grids. While these islands have varying degrees of applicability to the Cuban context, both Puerto Rico and the Bahamas were able to pioneer renewable energy projects by leveraging funds from NGOs.
Due to rising temperatures and increasingly unreliable energy infrastructure, action to update Cuba''s energy grid is urgently necessary. Though the country is facing an ongoing economic crisis, potential for improvement exists especially in the opening of international collaborations with partners in the Caribbean and nongovernmental organization and in increasing dialogue between Cuba and the United States. Some of these steps may seem unlikely, but — as history has long borne out — with urgent need comes the potential for unprecedented collaboration.
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Cuba''s energy sector is at a crossroads. The country''s mostly fossil fuel-fired energy system faces a number of longstanding and serious challenges, including breakdowns at aging power plants, decreasing fuel imports and fuel shortages, and the growing threat of climate change-related disruptions. In recent years, Cuba has seen frequent electric blackouts and brownouts that have affected residents, businesses, and government institutions island wide.
Overcoming Cuba''s energy challenges amidst the economic crisis will be no small task, requiring substantial investments of capital, which have been hard to come by given real and perceived risks of investing in Cuba under current circumstances and other regulatory and legal obstacles. New policies and systemic changes, and an overall reimagining of the country''s energy system, will be essential to attract the new investment needed to enable a clean energy future.
This report provides detailed information on the current state of Cuba''s energy sector and identifies opportunities to accelerate the deployment of renewables and advance climate resilience. The information provided is intended to help support future decisions on planning and policy in Cuba, foreign policy in the United States and other countries, and private and public investment in the country''s clean energy transition.
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