Cuba Cuts 74% of Required Power, Facing Near 'Blackout'

Cuba, which is grappling with worsening power shortages, is experiencing rolling blackouts once again, verging on a major grid collapse.

As the energy crisis accelerates, the government is speeding up efforts to open the energy and other sectors to the private market.

The Electric Union of Cuba announced that during peak hours yesterday, a large-scale power outage is expected to simultaneously cut off electricity in areas accounting for 74% of the country.

According to local daily Cubadebate and Spanish-language media Infobae, the utility announced that power demand during peak hours is expected to reach 3,200 MW (megawatts), but actual available supply stands at only 850 MW.

Consequently, it projected that the volume of electricity artificially cut off to prevent a massive power grid collapse would reach 2,380 MW.

This means that 74% of the required electricity cannot be supplied.

Cuba covers 40% of its power generation from 16 thermal power plants, but 9 of them have suspended operations due to aging and maintenance issues.

In particular, the Antonio Guiteras power plant, one of the core thermal plants, has broken down and completely halted operations about 20 times this year alone.

Power generation facilities running on diesel and heavy fuel oil, which accounted for another 40% of power production, have also been virtually suspended since January of this year due to the U.S. embargo.

The remaining 20% of electricity is being covered only by gas and renewable energy, such as solar power supported by China.

Cuba needs more than 100,000 barrels of crude oil a day, but it is suffering from a severe energy crisis as external supplies face disruptions.

Domestic production stands at only 40,000 barrels, which is 40% of the required amount.

Private experts estimate that 8 billion to 10 billion dollars (approx. 11.5 trillion to 14.5 trillion won) will be needed for the complete recovery of Cuba's National Electric System (SEN).

It is a situation that the Cuban government, suffering from an extreme economic crisis, cannot afford with its own financial capabilities.

The Cuban government is pushing for private sector openings to overcome this persistent energy crisis and expand its finances.

The government lifted regulations in several areas, including oil distribution, power generation, garbage collection, and pharmaceutical manufacturing and sales, to resolve severe shortages caused by the U.S. energy embargo.

Accordingly, as piles of garbage accumulate on the streets of Havana, private companies are now able to operate garbage collection and recycling services.

Private companies will also be allowed to sell fuel, as well as import and manufacture electric vehicles.

Previously, the Cuban government announced an emergency economic package last month focused on opening up along the lines of China and Vietnam.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.