Cuba Gambles on Green Energy to End Crippling Blackouts

Energy Crisis Spurs Renewable Shift

Cuba has been grappling with a protracted energy crisis, characterized by frequent blackouts that disrupt daily life and economic activity. This situation has been intensified by external factors, including U.S. intervention in Venezuela, a key supplier of energy to the island nation, leading to a significant reduction in crucial energy exports.

The crisis deepened in February when fuel rationing was implemented, a direct consequence of U.S. policies aimed at regime change through the disruption of Cuba's energy supply. The U.S. administration had previously threatened tariffs on any country continuing to supply oil to Cuba.

Initially, Mexico maintained crude oil shipments to Cuba, citing humanitarian reasons. However, these shipments were halted in February following the U.S. tariff threats. According to President Sheinbaum during a press conference on February 9th, Mexico is seeking to avoid any negative impact and find the best diplomatic solution for Cuba to receive fuel. Instead, Mexico opted to provide substantial humanitarian aid to Cuba.

While Russia has affirmed its commitment to continue supplying Cuba with crude oil, the timeline for these deliveries remains uncertain. In the interim, Cubans are increasingly relying on charcoal for cooking and adopting solar panels for electricity generation. The Cuban government is prioritizing fuel allocation for essential services and critical economic activities.

Long-Term Energy Independence

As Cuba scrambles to secure alternative fuel sources to address immediate shortages, the imperative for a sustainable, long-term solution is clear. Reducing dependence on foreign oil imports is crucial for strengthening the nation's energy security, especially given Cuba's vulnerability to extreme weather events.

The development of renewable energy resources presents a viable pathway to address these concerns. Cuba has committed to the UN Framework Convention on Climate Change (UNFCCC), pledging to increase its renewable energy capacity to 26 percent of the total energy supply by 2035. Currently, renewables, primarily solar, account for only 9 percent of the state electricity utility's supply.

Strategic Investments and Partnerships

Cuba's initial foray into renewable energy began in the late 1980s with the installation of solar panels, followed by the opening of its first wind farm in 1999. However, progress has been limited due to funding constraints and a lack of sustained political commitment. The government's National Energy Transition Strategy, unveiled in September 2024, signals a renewed focus on boosting domestic crude output and expanding renewable energy sources.

China has emerged as a pivotal partner, providing financial support and technical expertise for the development of Cuba's green energy sector. The island's largest wind farm, La Herradura 1, is currently under construction with Chinese funding. The initial phase involves the installation of 22 wind turbines, expected to generate 33 MW of clean power.

In December 2024, China and Cuba formalized an agreement to develop seven solar parks with a combined capacity of 35 MW. The Cuban government aims to establish 92 solar parks with a total capacity of 2GW by 2028, backed by Chinese financing. As of October 2025, 35 of these solar parks were reportedly completed.

Challenges and the Path Forward

To ensure the reliability of these solar parks, investments in battery storage and upgrades to Cuba's transmission network are essential. Currently, approximately 16 percent of the electricity generated in Cuba is lost due to transmission failures.

However, securing the necessary funding for these investments remains a significant challenge. According to Ricardo Torres, an energy economist at the American University in Washington, the energy transition plan requires investments of around $8 billion to $10 billion over the next decade. He notes that Cuba lacks the financial resources, and China's willingness to cover all costs is uncertain.

Furthermore, Cuba needs to cultivate the technical expertise required to manage renewable energy projects and modernize its transmission infrastructure, an area where the country currently faces a skills gap.

Despite these hurdles, wealthier households and business owners are increasingly investing in solar panels, particularly in Havana. Since the Cuban government eased restrictions on solar panel imports in 2024, the number of solar panel installation firms has increased. However, with a small solar package costing around $2,000, access to this technology remains limited for most Cubans.

Cuba's ambitious renewable energy goals hinge on securing substantial funding and expertise, which will likely require continued international collaboration. The nation's energy future depends on overcoming these challenges while navigating a severe energy crisis.