Caribbean & Central America - May 2025

CUBA: No early end to power cuts

Caribbean by Sarah Sheldon 28 May 2025 1721 views

In an extended interview with Granma, Cuba’s state-controlled newspaper, published in late March, Energy and Mines Minister Vicente de la O Levy explained what is being done to restore power supply across the island. He was careful not to promise any quick solutions.

The power cuts seem relentless. There were major power outages in February, March, October, and December last year. This year stoppages have continued. On 1 and 2 May, for example up to half the population had no electricity, with an overall demand-supply gap of 1,400MW. These cuts were caused because various of the country’s eight ageing thermoelectric generators had to be taken out of service for emergency repairs and because of fuel shortages.

The energy minister’s comments are unlikely to have instilled confidence. He said the recovery of the power grid (SEN) was “on schedule” and that a “positive outcome of everything planned…will soon be seen”. Critics say this is typical of official rhetoric, long on intentions but short on specifics.

The minister did say, however, that the government is committed to increasing the share of renewable energy in electricity generation to 24% by 2030.  Various new solar parks are reportedly close to completion, as repairs to the thermoelectric generators progress. The minister said this did not mean an end to the power cuts. He described the situation as “a gradual, costly, investment-intensive process for which we can see light at the end of the tunnel”.

De la O Levy made it clear the crisis could drag on. Or even worsen. In normal times, to maintain the SEN in operation, he pointed out that annual investments of US$250m-US$350m are required.  As he put it “if you don’t provide those resources for a year you can’t recover them; and it has been more than a year”. Fuel oil supplies, which must be imported, and paid for in scarce US dollars, are also uncertain although there are efforts to boost domestic production (Cuba produces around 40,000 bpd, or one third of its consumption).  

Cuba inflation

On 12 May Cuba’s national statistics office (Onei) released new figures showing monthly inflation in April was 0.40%, bringing the annual rate to 18.57%. This compares with monthly inflation in March of 1.22%, when the annual rate was 20.62%. The country closed 2024 with an inflation rate of 24.88%.