Cuba is currently grappling with a severe energy crisis, with power outages in some areas lasting over 20 hours a day. The nation's leader, Miguel Díaz-Canel, has publicly declared that his government is not to blame for the dire situation. Speaking on national television, he claimed the government lacks the financial resources needed to address the problem.
The Ministry of Energy and Mines (Minem) has revealed that Cuba's oil production only satisfies a third of the country's consumption, equating to roughly 40,000 barrels a day. In 2024, production saw a decline of 138,000 tons due to insufficient funding and material resources. Vicente de la O Levy, the minister of the sector, highlighted that the oil bill is the country's largest expense, with more than half of the available fuel allocated for electricity generation.
Government Priorities Under Scrutiny
Despite the ongoing energy crisis, the Cuban government continues to prioritize investments in the tourism sector over public health and social welfare. This trend, consistent over recent years, has sparked criticism both domestically and internationally. The government has expressed intentions to reform the National Electric System (SEN) and reduce dependency on imported fuels. However, it has not clarified the costs associated with renewable energy, which many experts consider unsustainable for the island.
Díaz-Canel also failed to mention his administration's decision to fund hotel construction and tourism infrastructure instead of allocating resources to resolve critical issues like the energy or housing crisis. For economists like Pedro Monreal, the energy crisis in Cuba is a political choice, as the government has delayed investments in this sector to prioritize other areas.
Economic Impact and Public Unrest
The energy crisis has severely impacted Cuba's economy. In 2023, the Gross Domestic Product (GDP) shrank by 1.9% and showed no signs of improvement in 2024, according to official figures. Power cuts have disrupted production, further weakening the country's already fragile economy. Moreover, the outages have fueled protests against the government. The lack of electricity has ignited demonstrations, including the largest in decades on July 11, 2021, followed by protests in 2022 in Havana and Nuevitas, and more recently on March 17 in Santiago de Cuba and other areas.
As the crisis deepens and social discontent grows, the Cuban government faces increasing scrutiny over its investment priorities and its ability to manage the energy crisis impacting millions of citizens.
Understanding Cuba's Energy Crisis
Why is Cuba experiencing such severe power outages?
Cuba's power outages are primarily due to insufficient oil production, which only covers a third of the nation's consumption needs, coupled with financial constraints that hinder the ability to address infrastructure issues.
What has been the economic impact of the energy crisis in Cuba?
The energy crisis has led to a 1.9% contraction in Cuba's GDP in 2023 and ongoing production disruptions, exacerbating the country's economic challenges.
How has the Cuban government responded to the growing public unrest?
While the government has acknowledged the energy crisis, it continues to invest in tourism infrastructure, which has led to further public dissatisfaction and protests.