Felix Morfis, next to photovoltaic panels installed in his home in the Regla municipality of Havana. The expert believes that there are no incentives in Cuba to invest in renewable energy to help alleviate the increasingly acute internal electricity crisis. Image: Jorge Luis Baños /IPSBy Dariel Pradas (IPS)
HAVANA TIMES – A new decree, published on November 26, requires high-energy consumers in Cuba, whether state-owned or private entities, to invest in renewable energy sources amidst the worsening energy crisis in the country.
According to the regulation, state and private economic actors, foreign institutional representatives, and associative forms must ensure investment so that half of the electricity consumed during daytime hours by “high consumers” comes from renewable energy sources.
If entities cannot install solar panels due to infrastructure limitations, they must establish contracts with the state-run Unión Eléctrica – the entity responsible for generating, transmitting, and marketing electricity – and connect to photovoltaic parks.
Failure to comply with these provisions can result in fines, power outages of up to 72 hours, and other penalties.
“The measure reflects a failure in the government’s policy of incentivizing investment in renewable energy sources. It may benefit the general population, but it doesn’t change the fact that the shift in the energy matrix is being imposed with a heavy hand,” said Daniel Lopez, a self-employed worker in Havana, told IPS.
High-energy-consuming entities – those averaging 30,000 kilowatts (KW) or more of electricity or 50,000 liters of fuel consumption over the past 12 months – will have three years to make investments meeting the 50% daytime consumption requirement.
Public Reaction
The decree sparked immediate reactions on social media: many celebrated the measure, some were skeptical about its implementation, and others feared its impact on the private sector.
“Is it viable to offer better services or increase my production only to have to pay more (by investing in solar panels), in addition to taxes? How many businesses will we lose due to this decree? Investing in Cuba is becoming increasingly difficult,” commented user Horus on an article about the issue published on Cubadebate, the country’s most-read state news portal.
The law could discourage entrepreneurship in small industries or productive areas that typically consume significant electricity. It might also force businesses to raise prices on certain products and services to recover the investment costs.
Since 2020, this Caribbean Island nation of 10 million people has struggled to meet domestic electricity demand with its production facilities.
The instability of the electrical system has been so evident that Cuba has suffered three nationwide blackouts in less than two months – the most recent on Wednesday, December 4. These have left hundreds of thousands of people without power for days.
Workers insid
