Cuba faces a severe energy crisis, with experts predicting that 2025 will be an “extremely difficult” year for the island nation. Jorge Piñón, an analyst from the University of Texas, highlights a daily deficit of approximately 80,000 barrels of liquid fuels necessary for electricity generation, despite a slight reduction in demand due to international shipments from Venezuela adn Mexico. Recent reports indicate that Mexico exported around $500 million worth of oil and derivatives to Cuba between January and September 2024, but the ongoing challenges in the energy sector raise concerns about the country’s ability to stabilize its aging electrical system.As Donald Trump prepares to return to the White House on January 20, concerns are rising about the implications for U.S.-Mexico energy relations under the leadership of Claudia Sheinbaum. Experts highlight that 90% of the natural gas exported from the U.S. flows to Mexico, which relies on it for 65% of its consumption. While Trump may leverage this relationship to exert pressure on Mexico, a potential reinstatement of sanctions on Venezuela’s PDVSA could paradoxically benefit both Mexico and Cuba. With Venezuela prioritizing deals with companies like Chevron and Repsol, Cuba has seen a significant reduction in oil shipments. If sanctions are reinstated, Cuba could regain access to more oil, easing pressure on Mexico to supply additional barrels.Cuba is making strides towards a renewable energy future, aiming to increase its solar energy contribution from a mere 9% to 37% by 2030, as outlined in its National Economic and Social Advancement Plan. the government plans to establish 100 solar parks nationwide by 2031, targeting an installed capacity of 2,000 megawatts. however, experts warn that achieving this aspiring goal could require an investment of $8-10 billion and take up to eight years, highlighting the need for substantial funding for both solar panel installation and energy storage solutions. As the country grapples with economic challenges, the feasibility of these plans remains uncertain.in a groundbreaking move for digital journalism, BetterBlog.ai has launched an innovative News Article Generator that leverages advanced AI technology to produce high-quality, SEO-optimized news articles. This tool is designed to mimic the writing style of seasoned journalists, ensuring that each piece is not only informative but also engaging for readers. By focusing on search engine optimization, BetterBlog.ai aims to enhance the visibility of news stories, allowing them to reach a broader audience. As the demand for timely and relevant news content continues to grow,this AI-driven solution promises to streamline the content creation process while maintaining journalistic integrity and accuracy,setting a new standard in the industry.For more details, visit BetterBlog.ai.
Q&A: teh Energy Crisis in cuba – Insights from jorge Piñón
Time.news Editor: Jorge, as we enter 2025, what are your thoughts on the current state of Cuba’s energy crisis? Many are predicting it will be an “extremely difficult” year for the country.
Jorge Piñón: Absolutely, the situation remains dire. We are facing a daily deficit of approximately 80,000 barrels of liquid fuels necessary for electricity generation. While there has been a slight reduction in demand due to international oil shipments from countries like Venezuela and Mexico, the challenges in stabilizing our aging electrical system persist.
Time.news Editor: Speaking of international shipments, reports indicate that Mexico has exported around $500 million worth of oil and derivatives to Cuba between January and September 2024. How significant is this support for the island’s energy needs?
Jorge Piñón: This support is crucial, albeit not sufficient. While these shipments provide some relief, they do not fully address the underlying issues. If we consider that 2024 ends with heightened energy shortages, the reliance on Mexican oil underscores our vulnerability. The Cuban government must devise enduring strategies beyond temporary fixes.
Time.news Editor: With Donald Trump’s impending return to the White House, what implications do you foresee for U.S.-Mexico energy relations, especially regarding Cuba?
Jorge Piñón: Trump’s administration might adopt a more aggressive stance on energy trade, perhaps leveraging U.S. natural gas exports to Mexico, which accounts for 90% of its natural gas usage. If sanctions on Venezuela’s PDVSA are reinstated, implicitly, the dynamics could shift. Paradoxically, that might allow Cuba to gain back access to venezuelan oil, lessening the dependency on Mexico for fuel.
Time.news Editor: That’s a complex situation. As Cuba aims to transition towards renewable energy, it has set a target to increase solar contributions from a mere 9% to 37% by 2030. Can you elaborate on this goal?
Jorge Piñón: Yes, Cuba’s National Economic and Social Advancement Plan envisions the establishment of 100 solar parks by 2031, targeting an installed capacity of 2,000 megawatts. However, achieving this aspiring target is contingent on significant investments—around $8-10 billion—and could take up to eight years. The feasibility of this plan is in doubt, especially given the current economic constraints.
Time.news Editor: Given these challenges, what advice woudl you offer to stakeholders looking to navigate the complexities of Cuba’s energy landscape?
Jorge Piñón: Stakeholders should prioritize partnerships and investments that emphasize sustainable development.Focusing on international collaboration for technology transfer in renewable energy will be key.Additionally, conservative management of available resources, coupled with transparency in operations, can aid in stabilizing the current energy situation and building public trust.
Time.news Editor: Thank you, Jorge. These insights are invaluable as we discuss the future of energy in Cuba amid ongoing challenges.
Jorge Piñón: Thank you for having me. The coming year will undoubtedly require resilience and adaptive strategies for Cuba’s energy sector.