Cuba is increasingly relying on solar power as a response to fuel supply constraints resulting from the U.S. naval blockade and embargo. According to U.S. Census data cited by Bloomberg earlier this week, American exports of solar cells and modules to Cuba reached $6.3 million during the first seven months of the year, representing a dramatic annual increase of 1,070%. Simultaneously, solar imports from China have declined by approximately 83% year-over-year, though China remains the island’s largest supplier of solar panels overall.
The situation presents an unusual dynamic given that the Trump administration has taken positions critical of renewable energy technologies. Despite these policy stances, U.S. companies are now gaining market access in Cuba through loopholes in the embargo regime. John Kavulich, president of the US-Cuba Trade and Economic Council, characterized this development as ironic, noting that Cuba could emerge as an important renewable energy export market for American firms despite the White House’s skepticism toward such technologies.
Cuba currently operates 144 solar installations with a combined capacity of 1,418 MW, accounting for approximately 20% of the nation’s electricity generation, according to President Miguel Diaz-Canel. However, experts have raised concerns about the implementation approach. Jorge Pinon, a researcher from the University of Texas Energy Institute, noted that Cuba is not pairing solar capacity with utility-scale battery storage systems needed to provide electricity during nighttime hours and overcast conditions. Battery storage equipment falls among goods prohibited for export to Cuba under U.S. sanctions, limiting the island’s options.
This limitation mirrors challenges facing Europe, where solar capacity significantly exceeds available battery storage. The absence of backup storage has created problems including negative electricity prices during periods of excess generation, contributing to the recent bankruptcy of Portugal’s largest unsubsidized solar installation after five years of operation without battery systems.
Meanwhile, enforcement of fuel restrictions continues. U.S. forces seized $3 million worth of biofuel destined for Cuba this week, distributed across 90 separate shipments, according to Reuters. Cuba produces approximately 40% of its crude oil requirements domestically, a factor that has sustained operations as international suppliers have retreated due to threats of substantial tariffs from the U.S. government.
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