Cuba’s ongoing struggle with an energy crisis has been further strained by geopolitical factors, notably the United States’ recent actions in Venezuela that have interrupted vital energy imports to the island. In response, Cuba is exploring the potential of renewable energy to diversify its energy sources and enhance its energy security.
The situation intensified in February when fuel rationing was introduced, following U.S. President Trump’s efforts to instigate regime change by cutting off Cuba’s energy supply, primarily sourced from Venezuela. Trump’s January threat to impose tariffs on countries providing oil to Cuba further complicated matters.
Initially, Mexico continued its crude oil shipments to Cuba, classifying it as humanitarian aid. However, President Sheinbaum halted these shipments in February, citing the need to avoid repercussions from U.S. tariffs. “It’s currently on hold, and we are seeking to avoid any negative impact on Mexico and, as always, to find the best diplomatic solution for Cuba to receive the fuel,” President Sheinbaum stated during a press conference on February 9th. Instead, Mexico has shifted to sending humanitarian aid to Cuba.
While Russia has expressed its intention to continue supplying Cuba with crude oil, the island is increasingly turning to alternative energy sources such as charcoal for cooking and solar panels for electricity. The Cuban government is also prioritizing fuel rationing for essential services and critical economic activities.
With the need for alternative fuel sources becoming more urgent, Cuba is focusing on reducing its reliance on foreign oil imports and enhancing its energy security. The country is particularly vulnerable to extreme weather, which makes its dependence on fossil fuels precarious. Developing renewable energy resources is seen as a viable long-term solution.
The Cuban government has pledged to the UN Framework Convention on Climate Change (UNFCCC) to boost its renewable energy capacity to 26 percent of the total energy supply by 2035. Currently, renewable sources, mainly solar, account for only 9 percent of the state electricity utility’s supply.
While Cuba’s first solar panels were installed in the late 1980s and its first wind farm opened in 1999, the country’s renewable energy development was limited until recently due to a lack of political will and funding. The government’s National Energy Transition Strategy, published in September 2024, aims to increase domestic crude output and develop renewable energy sources.
China has emerged as a crucial partner, offering financial support and expertise for Cuba’s green energy sector. The construction of La Herradura 1, Cuba’s largest wind farm, is currently underway with Chinese investment. The initial phase involves installing 22 wind turbines to produce 33 MW of clean power.
In December 2024, China and Cuba signed an agreement to develop seven solar parks with a combined capacity of 35 MW. The Cuban government plans to establish 92 solar parks with a total capacity of 2GW by 2028, with Chinese financial backing. By October 2025, 35 of these solar parks were completed.
To improve the reliability of these solar parks, Cuba needs to invest in battery storage and upgrade its underfunded transmission network, which currently loses about 16 percent of electricity due to transmission issues.
However, investing in battery storage may not be feasible. Ricardo Torres, an energy economist at the American University in Washington, explained, “The energy transition outlined by the government would require investments of around $8 billion to $10 billion over the next decade… Cuba simply does not have that kind of money, and China will not pay for everything.”
Beyond funding, Cuba faces a shortage of skilled workers to manage renewable energy and modern transmission projects.
Despite these challenges, some wealthier households and businesses are investing in solar panels. While many Cubans rely on charcoal or wood for energy, more solar panels are appearing in affluent neighborhoods, particularly in Havana.
The number of solar panel installation firms has risen significantly since 2024, following the Cuban government’s relaxation of import restrictions on solar panels, mainly sourced from China. However, with a small solar package costing around $2,000, most Cubans cannot afford this equipment.
Cuba is determined to increase its renewable energy capacity to reduce dependence on foreign fossil fuel imports and improve energy security. Achieving this goal will require substantial funding and expertise, necessitating international support amidst the ongoing energy crisis.
Original Story at oilprice.com