Cuban dependency on foreign energy
Cuba has historically relied on foreign energy imports to meet its energy needs, particularly after the collapse of the Soviet Union in the 1990s disrupted its energy supply chain. Although discoveries of oil and natural gas within Cuba have occurred, the country still struggles to fulfill its energy demands and continues to import significant quantities of petroleum products. During the Soviet era, Cuba benefited from substantial support, including plans for nuclear power development, which were curtailed post-Soviet collapse due to financial constraints. In response to ongoing energy shortages, Cuba has sought partnerships, notably with Venezuela, which provided oil at preferential rates in exchange for services from Cuban professionals working abroad.
Recent exploration indicates that Cuba possesses untapped energy resources, including substantial offshore oil and gas deposits. Despite this potential, financial limitations hinder the development of these resources and the expansion of renewable energy sources. The Cuban government maintains control over its hydrocarbon reserves, and while efforts have been made to diversify energy production—including the promotion of renewable energy projects—fossil fuels dominate the energy landscape. As of 2021, Cuba aimed to generate a portion of its electricity from renewable sources by 2030, reflecting an intention to transition toward a more sustainable energy future amidst longstanding economic challenges.
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Cuban dependency on foreign energy
Summary: Cuba has been dependent on foreign imports of energy, but the breakup of the Soviet Union in the 1990s led to the discovery of oil and natural gas within Cuba. Despite this, Cuba is unable to meet demands and continues to import large amounts of petroleum products.
An alliance with the Soviet Union in the 1970s led communist leader Fidel Castro to devise the Project of the Century, by which Cuba was to develop substantial amounts of nuclear power through a network of nuclear-powered plants. With aid from the Soviet Union, Cuba enjoyed relative prosperity during much of the latter half of the twentieth century and continued its efforts to generate nuclear power. Energy prices were generally affordable because of deals that allowed Cuba to trade sugar for petroleum. However, the global energy crisis of the 1970s led to efforts to develop alternative sources of energy and the creation of the Cuban Society for Promotion of Renewable Energy and Environmental Respect. After the dissolution of the Soviet Union in 1991, Cuba suffered a major economic downturn and was unable to finance nuclear energy projects. The Juragua project was abandoned. The demand for oil continued to be a major priority, and Cuban officials were forced to look elsewhere to meet demands. The government began encouraging foreign exploration for oil and gas.
In 2000, the Cuban government negotiated a deal with the government of Venezuela by which Cuba received preferential treatment, resulting in the delivery of around 100,000 barrels a day of petroleum products to Cuba. Partial payment was made through the services of Cubans who work in Venezuela, including some 30,000 members of the medical profession. Ongoing exploration unearthed significant energy resources in Cuba. By 2021, Cuba possessed approximately 124 million barrels of oil and its crude oil production was about 34 thousand barrels per day. Many observers believe Cuba has considerable energy resources that have not yet been exploited. According to the US Geological Survey, Cuba could potentially produce 4.6 billion barrels of oil and 9.8 trillion cubic feet of natural gas. In 2004, offshore deposits were discovered in Cuba, but these remain largely unexplored. As of 2024, the government maintained control of all hydrocarbon reserves in Cuba. There has been limited success in producing hydropower (estimated at 650 megawatts), and exploration into solar and wind energy have also shown potential for growth. However, the lack of capital hinders these efforts. Amid considerable controversy and protests from the American government, Cuba has been involved in negotiations with Russia to reopen the Juragua nuclear power plant.
Energy in Cuba
The history of energy in Cuba has gone through several transformations. The first significant period of development, which took place between 1959 and 1989, was characterized by rapid growth, a burgeoning infrastructure, and Soviet subsidies. In 1959, when Fidel Castro led revolutionary forces in taking control of Cuba, only 56 percent of the population had access to available sources of energy. Utilities were the province of the Public Service Commission operating under the auspices of the Ministry of Communications. Additional power was supplied by the Cuban sugar industry. Boilers and turbine generators used in energy production were imported from the United States or West Germany. Under communist rule, the generation, transmission, and distribution of energy became the responsibility of the state-owned Unión Eléctrica under the control of the Minister of Basic Industry. Reforms over the following decades expanded energy access to approximately 95 percent of Cubans.
During this time, fuel consumption climbed from 0.5 to 1.5 tons per person each year. When the Soviet Union dissolved in the 1990s, Cuba suffered an energy crisis, forcing Cubans to look for alternative energy sources. Those at the lower end of the economic scale often turned to wood or discarded building materials to heat their homes. The “Special Period” of Cuban energy development spanned the period between 1990 and 1997. This period was marked by financial crisis and a new emphasis on the production of domestic oil. Fuel oil began to be used to power the seven largest generator plants. The end of this period saw the entry of Venezuela as the major source of subsidized imported oil. The next period of Cuban energy development began in 1998 and continued until 2010. Despite the continued support of Venezuelan oil, blackouts occurred in 2004 and 2005, resulting in total power plant breakdowns of up to 18 hours at a time and leading to an energy revolution that placed a new emphasis on reduced oil consumption and accelerated energy generation. The government mandated the purchase of energy-efficient appliances, offering 10-year payment plans and salary deductions to help lower-income Cubans meet mandates. Sherritt International, a Canadian-based company, initiated an oil recovery program in Cuba.
Almost all elements of the power sector are controlled by the Cuban government, except for continued exploration by foreign investors. Because of the long history of subsidized power import arrangements, Cuba has paid little attention to financial and economic pressures. Approximately 95 percent of electricity produced in Cuba is derived from fossil fuels.
By 2021, Cuba was producing 19.53 billion kilowatt-hours of electricity and consuming 16.10 billion. The use of hydropower in Cuba was minimal. This was due in large part to fluctuating river levels according to seasons. The Toa River is the only Cuban body of water with enough power to produce hydropower, but attempts to dam the river were abandoned because of damage to the environment.
Nuclear energy has been a major priority in Cuba since the 1970s, but financing has been a problem since the withdrawal of Soviet aid in 1993. Only limited efforts have been made to promote the use of clean fuel, and the use of lead-based gasoline is widespread. Cuba fared much better with natural gas than with petroleum. Proven reserves were estimated at 70.792 billion cubic meters in 2021. As part of its Nationally Determined Contribution (NDC) under the Paris Agreement, Cuba committed to generating 24 percent of its electricity from renewable energy sources by 2030.
Bibliography
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Silverman, Roati, et al. "Building a Cleaner, More Resilient Energy System in Cuba." Columbia University, 17 Apr. 2024, climate.law.columbia.edu/content/building-cleaner-more-resilient-energy-system-cuba-opportunities-and-challenges. Accessed 30 July 2024.
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