Cuba is grappling with a severe energy crisis that has resulted in nearly daily blackouts and gas shortages. The crisis stems from years of underinvestment in the country’s transmission network and power plants, which have been unable to meet rising energy demands. Over the past eight months, Cuba has witnessed four nationwide blackouts, highlighting the fragility of its electricity infrastructure.
In May 2024, electricity demand surged to 3.05 GW, a notable increase from 2.58 GW in March. Meanwhile, the country’s energy supply struggled to reach 1.9 GW, allowing the government to meet only between 50 to 70 percent of Cuba’s energy needs on average. The frequent outages have forced many residents to invest in alternative solutions such as charcoal stoves, rechargeable batteries, and fans, which can be financially burdensome.
A significant collapse of the national electrical grid occurred in March, leaving most of the island’s 10 million residents, including those in the capital, Havana, without power. Popular tourist hotels resorted to generators, while countless households faced prolonged powerlessness. These ongoing blackouts have sparked anti-government protests in 2021, 2022, and this year, underscoring the public’s frustration with the situation.
According to Jorge Piñón, a researcher at the University of Texas at Austin’s Energy Institute, resolving Cuba’s energy crisis could take between three to five years and require investments of up to $8 billion. Years of mismanagement and lack of funding have severely affected the nation’s energy infrastructure. The National Electric System, established after the 1959 revolution, has seen inadequate maintenance and upgrades due to political and economic instability.
Compounding the issue, the Antonio Guiteras oil-fired power plant experienced a critical failure in 2024. Outdated backup systems failed to activate during a fault, leading to a nationwide blackout. The country’s reliance on substandard fuel has further strained the electricity grid. Heavy crude oil, characterized by high sulphur content, is corrosive and accelerates the deterioration of power plants.
The operational reliability of Cuba’s thermal power plants has declined significantly, with many running below capacity due to fuel shortages and equipment corrosion. From January to May 2024, Cuba’s power plants operated at an average daily capacity of around 34 percent. The Antonio Guiteras plant, with a capacity of 330 MW, has struggled to maintain operations due to difficulties in sourcing necessary repair parts.
Cuba has historically depended on imports for its fuel supply, primarily from Venezuela. However, recent sanctions imposed by the United States on Venezuelan energy have destabilized the crude supply, leading to inconsistent export volumes. In a shift, Mexico has increased its crude oil exports to Cuba, with state-owned Pemex shipping over $850 million worth of oil to Havana between May 29 and June 27, 2024. This amount is comparable to the total oil shipped from Mexico to Cuba over the previous two years, around $1 billion.
In recent years, China has stepped up its support for Cuba, assisting in the development of renewable energy projects. Initiatives are underway that could provide over 1,000 MW of renewable capacity, with more than half expected to be operational by early 2026. This aligns with the Cuban government’s goal of achieving a renewable energy mix of 24 percent by 2030.
Efforts to modernize Cuba’s electricity grid include the introduction of photovoltaic technology, aiming to reduce the country’s heavy reliance on fossil fuels. Despite the potential for growth in solar, wind, and biomass resources, years of inadequate policies and bureaucratic hurdles have stalled development.
Without significant investment and modernization, the grid remains unstable and ill-equipped to support new renewable energy projects. Experts emphasize that foreign investment in Cuba’s transmission infrastructure and renewable energy sector could be pivotal in transforming the energy landscape in the coming years.
