Latin America Advisor
Latin America Advisor
A Publication of The Dialogue
Will Cuba Be Able to Fix the Problems in its Power Grid?
The latest collapse of Cuba’s power grid, which happened earlier this month when Hurricane Rafael struck the country, came less than three weeks after another massive outage that left 10 million people without electricity. The grid’s complete collapse last month was caused in part by failures at the Antonio Guiteras power plant, the country’s largest, after months of rolling blackouts. President Miguel Díaz-Canel declared an “energy emergency” in response to the crisis, closing schools and instructing nonessential workers to stay home. What are the reasons behind the collapse of the power grid? How likely are Cuba’s electricity problems to lead to social unrest? What role should other governments in the region play in helping Cuba through its energy crisis?
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Jorge R. Piñon, senior research fellow at the Energy Institute of The University of Texas at Austin: “Cuba’s baseline thermoelectric generation capacity is more than 40 years old and has had very little operational and capital maintenance over the years. Today, according to UNE, 30 percent of its baseline thermoelectric installed capacity is still down, with the remaining balance operating at 60 percent of installed capacity. Short-term Band-Aid fixes are not going to solve what is a structural problem. To complicate matters, Cuba uses high sulfur and metals content Cuban crude oil as fuel, which further deteriorates the aging units. It is a vicious circle with no short-term solution. Cuba committed to generating 24 percent of its electricity from renewable energy sources by 2030…”
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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
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