Key facts
- Cuba's solar energy imports from the U.S. have increased by 1,070% in the first seven months of the year.
- U.S. solar cell and module exports to Cuba reached $6.3 million in the first seven months of the year.
- China's solar panel and module exports to Cuba are down 83% year-on-year.
- Cuba has 144 solar installations totaling 1,418 MW, meeting 20% of its electricity needs.
- U.S. forces seized $3 million worth of biofuel en route to Cuba.
- Cuba produces about 40% of the crude oil it needs for fuel consumption.
Cuba is increasingly turning to solar energy as a primary power source due to a U.S. naval blockade and sanctions that are severely limiting fuel imports. This situation has led to a dramatic surge in solar technology exports from the United States to the island.
U.S. Census data indicates that exports of solar cells and modules from the U.S. to Cuba exceeded $6.3 million in the first seven months of the year, marking a 1,070% annual increase. In contrast, solar imports from China have fallen by as much as 83% over the same period. While China remains Cuba's largest supplier of solar panels, the U.S. is emerging as a significant alternative for both households and businesses.
This development is seen as an ironic outcome, given the U.S. administration's less favorable stance on renewable energy technologies and past actions to reduce subsidies. John Kavulich, president of the US-Cuba Trade and Economic Council, commented to Bloomberg that it's "somewhat ironic that Cuba could become an important export market for renewable energy for US companies."
Cuba currently has 144 solar installations with a combined capacity of 1,418 MW, which accounts for 20% of the nation's total electricity needs, according to President Miguel Diaz-Canel. However, experts like Jorge Pinon from the University of Texas Energy Institute point out that this expansion is hampered by a lack of utility-scale battery storage, a component that U.S. companies are also banned from exporting to Cuba under sanctions.
This reliance on solar technology without adequate battery backup is noted as a potential issue, mirroring challenges faced in some European countries with excess solar capacity and negative electricity prices. Meanwhile, the U.S. has continued its pressure, with forces recently seizing $3 million worth of biofuel destined for Cuba. The U.S. government is reportedly allowing small fuel shipments to Cuba, possibly to encourage opposition to the Cuban government, but has also seized larger quantities.