Cuba’s energy landscape is undergoing a significant transformation, as highlighted by Ember’s report revealing that the installed capacity of the country’s thermal power plants (TPPs) more than doubled from 3.4 GW in 2000 to 7.4 GW in 2022. This surge is noteworthy, with two-thirds of the increase attributed to oil-fired power plants and the remaining third stemming from renewable energy sources (RES). The latter includes a diverse mix of solar panels, wind turbines, hydropower, and biomass plants utilizing agricultural waste, specifically bogasse, the fibrous residue left after sugarcane is crushed.
What’s particularly intriguing about biomass is its weather independence. Unlike solar and wind energy, which can be fickle, biomass energy production hinges on the availability of feedstock and the energy demand at hand. This characteristic could position Cuba favorably as it navigates the challenges of energy generation, especially with its ongoing reliance on fuel oil. However, the path to expanding these renewable sources isn’t without its hurdles. The commissioning of new capacities typically demands substantial investments in modernizing grid infrastructure.
This scenario is echoed globally, where the commissioning of renewable energy technologies has skyrocketed. For instance, the global rollout of wind generators surged from 59 GW in 2019 to a staggering 116 GW in 2023, while solar panel installations jumped from 102 GW to 346 GW in the same timeframe, according to IRENA. To support this boom, investments in transmission lines and substations have also seen a notable increase, climbing over 20% from $310 billion to $374 billion per year, as reported by the IEA. It’s no surprise that copper producers are cashing in on this transition, as copper is a fundamental material for building the necessary infrastructure.
However, Cuba’s energy evolution is not just about growth; it’s also about resilience in the face of adversity. Sanctions and restrictions have slowed the modernization of Cuba’s grid infrastructure, which is crucial for integrating these new energy sources effectively. The country’s heavy reliance on Venezuelan crude oil for fuel oil production has compounded these challenges. Oil imports from Venezuela have plummeted, dropping from 2.14 million tons in 2019 to just 1.31 million tons in 2021. This decline has had a tangible impact on power generation, with output from Cuban TPPs falling by over 10% during the same period—from 17.4 TWh in 2019 to 15.5 TWh in 2021.
As Cuba grapples with these realities, the energy sector’s future hinges on a delicate balance of investing in renewables while addressing the pressing need for grid modernization. The interplay between traditional energy sources and newer, cleaner technologies will shape not only Cuba’s energy independence but also its economic resilience. The question remains: can Cuba leverage its renewable potential effectively while navigating the geopolitical and infrastructural hurdles that stand in its way? The stakes are high, and the world will be watching closely as this Caribbean nation attempts to redefine its energy future.
