How many thermoelectric plants could be built in Cuba with the 18 billion from GAESA?

A question has become recurrent on the social media of Cubans: ¿How many thermoelectric plants could be built with the 18 billion dollars controlled by the Business Administration Group S.A. (GAESA) of the Revolutionary Armed Forces (FAR)?

The concern was reignited following Javier Bobadilla's comment on Facebook, in which he claims that with that money, Cuba's generative capacity could be "quintupled" and there would still be enough left to purchase oil.

"That GAESA has 18 billion dollars circulating somewhere, with no one knowing where they are or how they got there, is a financial marvel of the late General López-Calleja. (...) Where is that money? No one knows. López-Calleja had his setup very well organized. Only now is it starting to falter," said Bobadilla.

The post, inspired by the controversy surrounding GAESA, sums up the feelings of many Cubans. Money exists, but the regime does not invest it where it is most needed.

How many power plants can be built with 18 billion dollars?

"Me, who am not even remotely an expert in the field and calculate figures by rough percentages, can tell you with complete certainty that there is money there to quintuple Cuba's generative capacity, and there is plenty left over to purchase oil," expressed Bobadilla.

Using international reference prices and considering the current situation in Cuba, with 18 billion dollars it would be possible to finance approximately 12 modern combined cycle plants of 500 MW each. This capacity would more than adequately meet the country's electrical demand, drastically reducing blackouts.

Another option would be to allocate that money for the purchase of fuel for generation. Around 225 million barrels of crude could be acquired, enough for over 15 years of electricity consumption at the current rate.

They are approximate calculations, but they illustrate the transformative potential that capital would have if directed towards solving the energy crisis.

Why doesn’t the government invest its resources in the energy sector?

Bobadilla defends a theory with many supportive comments: "Why aren't they going to invest in thermoelectric plants? Because a general can't come along and claim ownership of a thermoelectric plant in Cuba and charge for electricity in dollars. The hotel and real estate sectors can. However, it won't be long before they can," he predicted.

Economists like Pavel Vidal point out that GAESA operates as a parallel central bank, accumulating reserves without redistributing them or investing in critical sectors.

While the average salary hovers around 16 dollars per month, the military conglomerate received over 9,260 million pesos from the state budget in August 2024, but did not pay a single dollar in taxes.

In Cuba, it takes only 43 million dollars annually to supply 63 essential medications, and 250 million to stabilize the national electricity grid. These amounts are minimal compared to the 18 billion that GAESA has tied up.

However, the money is not allocated to those urgent needs; instead, it is kept in national and foreign accounts or invested in sectors such as tourism, even in its current state of decline.

The K23 Hotel

In 2024, amid power outages and fuel shortages, the government inaugurated the K23 Tower, a luxury hotel in Havana financed by GAESA. The building, standing at 154 meters with more than 560 rooms, cost between 226 and 565 million dollars, according to estimates for this type of construction using imported materials.

Its estimated electricity consumption is around 1.93 MW continuously, a remarkable energy luxury compared to the constant breakdowns of thermal power plants. With that money, the government could have repaired several plants or built a thermal power plant similar in capacity to Antonio Guiteras, but it chose to prioritize a tourist symbol devoid of guests.

Wrong political decision

Prime Minister Manuel Marrero insists that tourism is "the driving force of the Cuban economy." However, the sector has failed to meet its targets for more than three years, and its recovery is virtually nonexistent. While hotels are being built, Cubans continue to face blackouts, food shortages, overwhelmed hospitals, and salaries that do not cover the basic needs.

The arrival of visitors has fallen by more than 60% compared to 2019, hospitality services are receiving constant criticism, and competitiveness is low. Even the Minister of Tourism, Juan Carlos García Granda, acknowledged 2024 as "the worst moment."

Other ministers admit that the food industry and agriculture cannot supply the sector, which forces the importation of a significant portion of the inputs, further draining foreign currency.

The logic of “tourism first” has deteriorated food production, public services, and the healthcare system. Instead of investing in energy infrastructure or improving the quality of life, the regime redirects resources towards an industry that cannot sustain itself.

The calculations show that, with the funds that GAESA has immobilized, Cuba could completely renew its electrical system or ensure fuel for over a decade. However, the regime prefers to invest in empty hotels and mega tourism projects.

Frequently Asked Questions about GAESA's Investment and the Energy Crisis in Cuba