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The foreign trade ministry has traditionally controlled equipment imports, while state-owned power utility UNE has managed project development. Havana is now moving to legalize and encourage individual enterprise and small businesses.
The government said it will remove customs duties on renewable power equipment, parts and components, including solar heaters, photovoltaic pumps, small wind turbines, biodigesters, biogas pumps, solar lighting, solar air conditioning systems and related parts.
The attempt to accelerate development of renewables coincides with lengthening power outages, a long decline in domestic crude production and reduced subsidized oil supply from political ally Venezuela.
Cuba currently has renewable power capacity of 225MW, a small complement to its aging oil-based fleet of generators.
"In the last five years, investments in renewables have been made that exceed $500mn, which shows the priority given by the government to meet the 2030 targets of the national economic program," the government says.
Several small wind and solar plants have been installed across the island, but most of the major renewable power capacity has been installed through joint ventures with foreign investors.
UK renewable energy developer Havana Energy and Cuba''s state-owned sugar company Azcuba subsidiary Zerus are operating a 60MW biomass plant that burns bagasse, the residue from sugar cane milling, and wood chips from the invasive marabou weed.
The government is constructing two similar plants with combined capacity of 70MW.
UK developer Hive Energy and China''s equipment manufacturer Shanghai Electric Group are building a 50MW solar project at the Mariel commercial and industrial zone 45km west of Havana.
And India has given Cuba $75mn in supplier''s credit to finance development of several solar plants with combined capacity of 75MW.
Blackouts worsened in the first half of this year as Cuba struggled with plant breakdowns and a shortage of generation fuels.
On September 1-2, the Aspen Institute''s Energy and Environment Program took part in the Cuba Energy & Infrastructure Summit in Havana, Cuba, by organizing a panel about the policy, finance, and market opportunities and challenges developing a cleaner energy economy in Cuba. The Aspen Institute arranged for David Sandalow, the Inaugural Fellow at Columbia University''s Center on Global Energy Policy, and Roger Ballentine, Founder and President of Green Strategies in Washington, D.C., to travel to Havana and participate as speakers during the Summit.
Cuba is looking to make great strides in the clean energy space. Currently, Cuba generates more than 80% of its electricity from burning oil, one of the most carbon intensive fuels (other than coal). The majority of the rest of its electricity is from natural gas or biofuels (mostly sugar cane and Marabu, an invasive species of hardwood tree). However, in the last few years Cuba has installed 11mw of wind power and 24mw of solar power. This has led to an increased desire for additional renewable generation sources. Therefore, in their intended nationally determined contribution to the 2015 Paris Climate Agreement, Cuba agreed to install more than 2,000mw of renewable generation sources, with 24% of their electricity sector being renewable by 2030.
As Cuba looks to modernize its power sector and reach its Paris Climate goals, the Aspen Institute is interested in continuing discussions with the Cuban government and industry leaders about clean energy policy, markets, and infrastructure in Cuba. The Aspen Institute''s Energy and Environment Program has worked with several other countries, including India and China, to engage on bilateral and multilateral agendas on energy, environment and climate.
—Greg Gershuny is the Acting Deputy Director and James E. Rogers Energy Policy Fellow for the Aspen Institute''s Energy and Environment Program.
David Sandalow directs the US-China Energy & Climate program and works on a wide range of issues including the future of the electric grid, renewables finance and CO2 utilization and, prior to joining Columbia, served in senior positions at the U.S. Department of Energy, including Under Secretary of Energy (Acting) and Assistant Secretary for Policy & International Affairs.
Roger Ballentine advises and represents businesses, associations, government agencies and non-profit entities on domestic and international public policy issues and business strategies, focusing on energy, environmental and conservation matters. Previously, he was a senior member of the White House staff, serving President Bill Clinton as Chairman of the White House Climate Change Task Force and as Deputy Assistant to the President for Environmental Initiatives.
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"The energy transformation offers a path of prosperity and sustainable development, particularly in islands. But an ambitious effort to boost economic growth and diversification requires leadership, which we are seeing here in Cuba and with this forum," said IRENA Director-General Adnan Z. Amin, opening the Cuba Sustainable Energy Forum 2018 to delegates from the Cuban energy sector and government, the European Union, international energy companies, and the private sector.
Held in Havana from 30 to 31 January 2018, the forum provided a platform for the Cuban authorities to present the country’s sustainable energy and foreign investment opportunities, and for the EU to showcase renewable energy technologies, lessons learnt and financing instruments available to Cuba.
IRENA’s Director-General used the opportunity to underscore that strong partnerships are vital for accelerating Cuba’s energy transformation and realising its goal of generating 24 per cent of its electricity from renewables by 2030.
Today, less than five per cent of Cuba’s electricity is generated from renewables. The government’s goal is ambitious and backed by a well-educated labour force and domestic renewables organisations such as the Centro de Investigaciones de Energía Solar, that are working to build the technical capacity throughout Cuba to scale up renewable energy.
However, the country faces a key barriers to accessing financing for renewable energy projects. With the government''s renewable energy investment goal of USD 3.5 billion, foreign investment in the small island state is critical.
In this context, Cuba is strengthening its engagement with IRENA through the SIDS Lighthouses Initiative, which has surpassed its initial goals of mobilising USD 500 million for renewables and deploying 100 MW of solar PV in SIDS by 2020. The Agency has been supporting Cuban renewable energy deployment since 2013, at both technical and political levels, through convening technical expert exchanges with other countries, and by participating in Cuban energy conferences and workshops.
Furthermore, IRENA has recommended a state-owned 10-megawatt solar PV project in Cuba to its partner, the Abu Dhabi Fund for Development (ADFD), for an award of USD 15 million in co-funding — Given Cuba''s renewable energy financing constraints, the IRENA/ADFD Project Facility has the ability to inspire investor confidence and attract further finance.
During a meeting with Cuba''s Vice President of the Councils of State and Ministers, Minister of Energy and Mines, and Minister of Science, Technology and Environment, the IRENA Director-General agreed to strengthen the partnership between IRENA and Cuba in support of the country''s energy transformation.
For island states, renewables offer secure and diverse energy, sustainably. Through the Cuba Sustainable Energy Forum 2018 and its growing cooperation with IRENA, Cuba can help accelerate its pursuit of a sustainable energy future.
Havana, Cuba, 25 August 2016 – The government of Cuba and the International Renewable Energy Agency (IRENA) are holding a workshop on approaches to operating and planning electricity systems with higher shares of variable renewable energy in the island nation of Cuba. Taking place in Havana from the 24th to 26th of August, with the support of the German Government’s International Climate Initiative, the three-day workshop is the first of its kind in the country and will facilitate the exchange of knowledge between Cuban technical experts and international planners and operators. They will identify key issues and challenges which need to be addressed in order to reliably operate Cuba’s electricity grid, including the management of high shares of renewable energy.
Speaking at the event, Cuban Minister of Energy and Mines, AlfredoLópez Valdéssaid, “Today in Havana, the purpose of starting an exchange with IRENA becomes real. This exchange will not conclude with this event and we are sure that it will consolidate the traditional friendship between IRENA and the Cuban institutions.The political will of our government to keep the fight against climate change: a struggle that is a moral obligation and an essential opportunity for a sustainable development. This is reflected in the national policy approved in June 2014 for the development of renewable energy and energy efficiency."
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