Cuba Industrial Park s Energy Storage Requirements

Over the past 10 years, Cuba has begun to embark on an energy transition. Recent shifts in law and policy create new and promising opportunities and indicate a desire on the part of Cuba's policymakers to transition to a cleaner, more climate resilient energy system.

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.

Further, according to Cuba's Minister of Economy and Planning, export earnings in 2023 were just $9.1 billion (down from $12 billion in 2019), missing the forecasted $9.9 billion.

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%.

While inflation is estimated to have dropped to 30% in 2023, the price of food increased 78%. Residents of Cuba are expected to experience a new wave of inflation in 2024 following the government's announcement of a new austerity plan that will include price and tax increases and cuts in subsidies.