Cuba is grappling with an escalating energy crisis that has left residents facing almost daily blackouts and gas shortages. Years of underinvestment in the nation’s transmission network and power plants have resulted in a severe energy deficit. Currently, the energy supply falls significantly short of demand, with the government only able to meet between 50 to 70 percent of the country’s energy needs.
In recent months, the situation has deteriorated further. For instance, in May 2024, electricity demand surged to 3.05 GW, up from 2.58 GW in March. However, supply remained stagnant at approximately 1.9 GW, highlighting the widening gap between energy demand and availability. This lack of capacity has led to four nationwide blackouts in the past eight months, affecting millions across the island, including the capital, Havana.
Impact on Daily Life and Economic Strain
The persistent blackouts have forced many Cubans to adapt their daily lives dramatically. Households have started investing in charcoal stoves, rechargeable batteries, and other essentials to cope with the outages, especially as temperatures rise. For many, these adjustments come at a time of economic hardship, making it difficult to afford even basic necessities.
The crises have sparked anti-government protests in 2021, 2022, and 2024, reflecting widespread frustration among the population. According to Jorge Piñón, a researcher at the University of Texas at Austin’s Energy Institute, resolving Cuba’s energy crisis could require three to five years and an investment of up to $8 billion.
Cuba’s energy challenges stem from years of mismanagement and underfunding of its infrastructure, which has resulted in a grid that struggles to perform even basic functions. The National Electric System, established after the 1959 revolution, has not seen significant upgrades since, leading to frequent transmission failures and outages.
Root Causes of the Crisis
In 2024, the Antonio Guiteras oil-fired power plant experienced a critical breakdown. Instead of backup systems activating to counteract the failure, outdated technology failed to detect the problem, resulting in a nationwide blackout. This incident reflects a broader trend of deteriorating reliability across Cuba’s thermal power plants, which are increasingly hampered by fuel shortages and corrosion.
Cuba primarily relies on domestic, low-quality heavy crude oil, which has detrimental effects on its aging power plants. The 330 MW Antonio Guiteras plant has faced ongoing operational challenges due to the inability of its operators to procure necessary repair parts. This issue is prevalent across various facilities, including the Lidio Ramón Pérez and Máximo Gómez thermal plants, which are also struggling to maintain effective operations.
Despite importing fuel, Cuba’s trade relationships are unstable. The nation has historically depended on Venezuela for crude oil, but U.S. sanctions have severely impacted Venezuelan energy production, leading to inconsistent supply. Recently, Mexico has increased oil shipments to Cuba, with state-owned Pemex delivering crude valued at over $850 million between May 29 and June 27, matching the total amount sent over the previous two years.
In addition, China has stepped up support for Cuba, assisting in infrastructure modernization. Chinese investments aim to develop projects that could significantly alleviate the ongoing energy crisis, with over half expected to be operational by the beginning of 2026. This aligns with Cuba’s goal of achieving a renewable energy mix of 24 percent by 2030.
While the Cuban government has expressed intentions to diversify its energy sources, including solar and wind power, bureaucratic obstacles and a lack of investment have hindered progress. Without modernising its infrastructure, Cuba’s grid remains too unstable to integrate large-scale renewable energy projects effectively.
As Cuba navigates this complex energy landscape, foreign investment and infrastructural improvements will be crucial for a potential turnaround in the coming years. The nation stands at a critical juncture, where decisive action could reshape its energy future and provide relief to its citizens.
