Without Power, There Is No Country: A Special Report on Cuba’s Electricity Generation Crisis

Prolonged blackouts and growing generation deficits are disrupting economic activity, public services, and daily life for millions of people across the island. In recent weeks, electricity shortages have also sparked social discontent, with protests and pot-banging demonstrations reported in several parts of the country.

Without Power, There Is No Country: Cuba’s Electricity Generation Crisis, a new CSG Special Report by economist Ricardo Torres, examines the root causes of Cuba’s power crisis and the challenges the country faces in rebuilding its electricity system. The report analyzes the deterioration of energy infrastructure, investment choices made over the past decade, and the conditions needed to stabilize power supply in the years ahead.

What does the report find?

Cuba’s energy crisis is no longer a temporary disruption. It has become a structural constraint affecting economic activity, household welfare, and the delivery of basic services.

Key findings include:

• A structural power crisis: Electricity generation fell from more than 21,000 GWh in 2019 to less than 16,000 GWh in 2025, a drop of nearly 25 percent. Generation deficits have risen sharply and at times approach one-third of the system’s available capacity.
• Aging infrastructure: Many of Cuba’s main thermoelectric plants have been operating for more than 30 years. Deferred maintenance, shortages of spare parts, and repeated forced outages have significantly reduced generating capacity.
• Heavy dependence on imported fuels: In 2024, about 76% of electricity generation relied on petroleum-based fuels, with more than half imported. This dependence leaves the system highly vulnerable to disruptions in external supply.
• Renewables remain marginal, though expanding: Despite plans for an energy transition, renewable sources accounted for only about 3.6% of total electricity generation in 2024—far too little to offset the system’s structural deficits. However, the country added almost 800 MW of new solar park capacity in 2025, a significant step forward. 
• Low investment in energy infrastructure: While energy infrastructure received less than 10% of total investment in recent years, the tourism sector absorbed nearly 40% of national investment between 2019 and 2024. This reflects a policy priority for hotel construction and tourism-related real estate at the expense of other key sectors.
• Energy projects with limited results: Several initiatives—including wind farms, biomass projects, and solar plants—have faced long delays or operated below capacity due to planning, financing, or management problems.
• An unattractive climate for foreign investment: Payment delays, debt restructurings, and the freezing of foreign-currency accounts have weakened the country’s financial credibility, making it harder to attract international capital for energy projects.
• The scale of the challenge: The report estimates that closing the generation gap would require at least USD 6.6 billion in investment in new generating capacity, not including additional resources needed to modernize the electricity grid.
• Energy reform requires broader economic reform: Restoring the power system will require more than technical investment. It also demands a better investment climate, credible payment mechanisms, and greater room for non-state actors in the energy sector.
• Geopolitical shifts eliminate key energy source: The capture of Nicolás Maduro fundamentally altered Cuba’s outlook. Coupled with the Trump administration’s recently imposed oil blockade, shipments are already being disrupted. Without alternative suppliers, the generation shortfall will continue to widen.
• Washington’s late February 2026 decision to ease fuel export restrictions to Cuba’s private sector—including possible re-export of Venezuelan oil under license—may alleviate certain shortages but isn’t likely to impact national electricity generation.

Download the English version of the full report below, or the Spanish version here.