The Cuban regime seeks new players to confront the electricity crisis

Díaz-Canel announces reforms to incorporate new economic actors in response to Cuba's worst electrical crisis in decades.



Miguel Díaz-Canel (Reference image)Photo © YouTube/Screenshot-Presidencia de Cuba

The acute energy crisis that has Cuba facing daily blackouts and severe difficulties in securing fuel is forcing the regime to seek new economic players and management strategies to sustain the country's strategic sectors.

During a televised appearance this Friday, Miguel Díaz-Canel indirectly acknowledged the magnitude of the problem by revealing that in the last five months, only one oil tanker has arrived on the Island. He attributed this situation to the so-called "criminal energy blockade" by the United States, which he admitted has affected the functioning of the national economy.

The statement represents one of the most explicit acknowledgments made by the government regarding the difficulties in ensuring fuel supply in the country, at a time when breakdowns in thermal power plants, lack of generation, and diesel shortages have caused widespread power outages across the nation.

In light of this situation, Díaz-Canel stated that the government is committed to transforming the economic model to allow for the inclusion of new participants in areas deemed crucial for the country's recovery.

In the energy sector, the leader stated that one of the priorities will be to accelerate the development of renewable energy sources to reduce dependence on imported fossil fuels.

"Another priority that has been addressed and promoted concerns the use of Renewable Energy Sources in all areas," he stated.

Also announced a commitment to electric mobility, both through the importation of equipment and through its production and assembly on the island.

"We are betting on increasing electric mobility, both through the importation of electric equipment and through the assembly and manufacturing, in Cuba, of different types of equipment," he pointed out.

The statements come at a time when the national electric power system is facing a critical situation, marked by generation deficits that often exceed half of the national demand, and by an increasing dependence on fuels that the country struggles to import due to a lack of foreign currency.

The bet on renewable energies

Since February of this year, the regime authorized the direct sale of energy generated by businesses and individuals, with a rate of 90 CUP/kWh for producers of renewable sources.

Cuba has 49 solar parks connected to the SEN, with a capacity of between 900 and 1,000 MW, and the plan is to reach 92 parks by 2028, supported by a Chinese donation of over 114 million dollars.

However, the expert Jorge Piñón warned this Friday that the situation will not improve in the short term: there are between 10 and 11 thermoelectric units out of service, nearly 60% of the 19 units across the eight plants in the country.

On May 14, a record deficit of 2,174 MW was recorded, with only 976 MW available against a demand of 3,150 MW, leaving 70% of the country without electricity simultaneously. 

New players to sustain the economy

But the official response to the crisis is not limited to the energy sector.

As part of the Economic and Social Program planned for 2026, Díaz-Canel announced a series of transformations aimed at flexibilizing the operation of the economy and expanding the role of various productive actors.

Among the most significant measures is the strengthening of municipal autonomy, allowing local territories to directly manage exports, imports, investments, and local development projects.

The leader also announced greater powers for state-owned enterprises, which will be allowed to engage in foreign trade operations, participate directly in the currency market, and establish partnerships with other economic actors.

One of the most striking elements of the announcements was the intention to increase the economic participation of Cubans living outside the island.

According to Díaz-Canel, the new regulations aim to allow investment on equal terms alongside state-owned enterprises, cooperatives, small and medium-sized enterprises, and foreign capital.

The government also plans to expedite the approval of foreign investment projects and eliminate bureaucratic obstacles to attract capital.

The measures also include incentives to increase agricultural production, reduce idle land, and facilitate partnerships between state and private producers.

In the tourism sector, which has been severely impacted by the decline in visitors and the departure of some international hotel chains, Díaz-Canel acknowledged the need to seek new solutions.

For this reason, the regime aims to promote real estate and tourism businesses with new partners and economic players to take advantage of the existing infrastructure.

The proposals also include flexibilizing the activities permitted for small and medium-sized enterprises (mipymes), expanding opportunities for economic partnerships, and facilitating direct export and import operations without mandatory intermediaries.

The ruling party also announced that it will continue the policy of replacing general subsidies with targeted assistance for vulnerable individuals.

At the same time, he announced a reduction in ministries, positions, and administrative structures, with the stated goal of reducing expenses and allocating more resources to social programs and future salary reforms.

Although Díaz-Canel presented these measures as part of a strategy to overcome current difficulties, the announcements come in a context marked by a deep economic crisis, recurrent power outages, fuel shortages, inflation, and a growing deterioration of living conditions for the Cuban population.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.