Why is the energy sector at a crossroads in Cuba?

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.

Is Cuba's energy infrastructure in a precarious state of aging and disrepair?

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.

How can Cuba build a more resilient energy system?

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.

Should Cuba update its energy grid?

While small-scale, such renewable energy initiatives can reduce pressure on the energy grid and provide relief in especially vulnerable places. Due to rising temperatures and increasingly unreliable energy infrastructure, action to update Cuba’s energy grid is urgently necessary.

How does Cuba rely on oil?

Cuba is dependent on fossil fuels for energy generation and relies on oil imports of crude and fuel oil from Venezuela and Russia, as well as floating power plants provided through an agreement with a Turkish business group.

Is Cuba facing a severe economic crisis?

Compounding these problems, Cuba is facing a severe economic crisis. In 2022, year-on-year inflation was 39% (down from 77% in 2021). While inflation is estimated to have dropped to 30% in 2023, the price of food increased 78%.