What is Cuba's New Energy Policy?

According to the decree, the measures must be included in a “program for the development, maintenance, and sustainability of renewable sources and the efficient use of energy, with a five-year scope.” New economic entities wishing to operate in Cuba will need to incorporate these programs into their planning from the outset.

What happened to the energy sector in Cuba?

From that more recent crisis arose the so-called Energy Revolution and the government changed the leadership of the then Ministry of Basic Industry, responsible for the sector. With few traditional sources of its own, Cuba has always been dependent on imported energy.

What happened to Cuba's energy sector in 2022?

Various press reports suggest additional reductions occurred during 2022. Electric power has become the Achilles’ heel of Cuba’s energy sector and economy, as its oil-based distribution and thermoelectric generation collapsed due to age and lack of scheduled and capital maintenance.

Why is Cuba so dependent on imported energy?

With few traditional sources of its own, Cuba has always been dependent on imported energy. The replacement of the United States by the Soviet Union as the main trading partner and political ally was particularly visible in the change in supply of hydrocarbons.

How long will Cuba's New Energy Policy take effect?

Instead of implementing structural policies to modernize state electricity generation and promote genuine incentives for the transition to renewable energy, the regime chooses to impose obligations that will be costly and unfeasible for many. The decree announced on Tuesday in the Gazette of Cuba will take effect 30 days after its publication.

Should Cuba increase the share of LNG power generation?

Cuba should consider increasing the share of LNG electric power generation for its power generation. The recapitalization of the sugarcane agro-industry deserves important attention within Cuba's future energy policy.