Cuba is moving towards the use of solar energy due to the U.S. maritime blockade that prevents fuel from entering the country. Despite the long-standing U.S. embargo against Cuba, imports of solar technologies from this country have significantly increased while Cuba is seeking alternative ways to generate electricity.
Increase in solar panel imports from the United States
According to data from the U.S. Census Bureau, exports of solar cells and modules from the United States to Cuba reached over $6.3 million in the first seven months of this year. This 1070% increase compared to last year indicates a remarkable acceleration in Cuba's attention to renewable energy. Additionally, imports of solar panels from China have decreased by 83%. Although China is still the largest supplier of solar panels for Cuba, the United States has emerged as a new option for households and businesses on the island.
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Solar energy production capacity in Cuba
Currently, Cuba has 144 solar facilities with a combined capacity of 1,418 megawatts, which meets 20% of the country's total electricity needs. President Miguel Díaz-Canel has stated that this capacity has significantly helped reduce the country's dependence on fossil fuels. However, analysts have warned that the expansion of solar technology in Cuba is not being carried out properly. According to Jorge Piñon, a researcher at the University of Texas Energy Institute, Cuba needs to add utility-scale battery storage to support solar panels at night and on cloudy days.
Meanwhile, battery storage equipment is also subject to U.S. sanctions, and Cubans effectively have no option to purchase batteries. This reality indicates that solar technology without battery support is not an optimal option for replacing hydrocarbons. Problems arising from negative electricity prices due to excess capacity without battery support could harm the profitability of the industry.
Cuba produces about 40% of the crude oil it needs for fuel consumption, which has helped stabilize the country's economy. Previous suppliers have refrained from continuing to supply fuel to Cuba due to U.S. threats to impose heavy tariffs, and now the United States and its solar panels have entered the market as a new alternative.
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