Indonesian Political, Business & Finance News

Cuba Faces Fuel Shortages and Energy Crisis, Increasingly Reliant on China

| Source: CNBC Translated from Indonesian | Energy
Cuba Faces Fuel Shortages and Energy Crisis, Increasingly Reliant on China
Image: CNBC

Cuba is facing an acute energy crisis due to fuel shortages, while its dependence on China grows to maintain electricity supply through solar power development. Amid near-daily blackouts, Chinese-made solar panels are increasingly appearing across Cuba. According to data from RenewAtlas, at least 41 medium-scale and 18 small-scale solar power plants have been built over the past two years.

Ricardo Torres Pérez, an economist at American University, stated that the energy crisis was partly triggered by a collapse in crude oil imports from Venezuela. ‘Without the solar power plants, the blackouts would be far worse,’ Torres said, as quoted by the Wall Street Journal.

The additional solar plants are expected to generate around 1,000 megawatts (MW) when operating at peak capacity. This figure is nearly five times the previously installed solar capacity and equivalent to almost a third of Cuba’s peak electricity demand of approximately 3,200 MW.

China has been the primary supplier behind the surge in solar construction. Customs data shows China shipped solar equipment worth US$117 million to Cuba in 2025, a sharp increase from just US$3 million in 2023. Cuban Prime Minister Manuel Marrero Cruz said several projects were financed using revenues from the nickel sector. Cuba’s 2026 economic plan also notes a donation of 320 MW of solar panels from China, with smaller contributions from Vietnam and Japan.

This energy support is strengthening China’s ties with Cuba and the wider Caribbean region. Jorge Piñón, an energy researcher at the University of Texas, said Beijing’s assistance provides a significant public relations advantage. ‘China gets a lot of mileage in terms of positive image throughout the region because of the steps they are taking with Cuba,’ he said.

However, the influx of aid and equipment from China has not ended the power cuts. Cuba’s ageing electricity grid, declining fossil fuel plants, and a lack of battery storage capacity mean the country can only utilise a fraction of the installed solar capacity.

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