The Guardian reported that a large-scale energy proposal is opening up a new direction for Cuba, as experts believe that the island nation can solve its prolonged power shortage problem with an investment program of about 8 billion USD in renewable energy.
According to analysis by the Common Wealth research organization based in the UK, this investment is enough to help Cuba meet up to 93.4% of electricity demand from clean energy sources such as solar, wind, hydropower and biomass (Biomass). If expanded to nearly 20 billion USD, Cuba can even operate an electricity system entirely based on renewable energy - something unprecedented in the Caribbean region.
The report was built within the framework of the Energy Transition Security Project (TSP), stating that Cuba possesses great potential for developing green energy, especially solar power, thanks to year-round high radiation conditions.
According to the most ambitious scenario, about 75% of Cuba's electricity will come from solar energy, 20% from wind power, and the rest from hydropower and biomass. Lower-cost options may increase the proportion of biomass and wind to reduce initial investment pressure.
Notably, not only helping to ensure supply, this model also brings clear economic benefits. Electricity production costs can be significantly reduced, from about 14.3 cents/kWh currently to 6.5 cents/kWh if investing 8 billion USD. Even an investment scenario of 5 billion USD can help reduce dependence on fossil fuels to only about 20%.
In fact, Cuba has begun to transform. In the past year, the country has put into operation more than 1,000 MW of solar power with financial and technological support from China - the first step in the large-scale energy transition roadmap.
However, a significant challenge lies in capital sources. The report argues that funding for this transition process should be seen as a form of "compensatory climate finance", in which the international community plays a supporting role for vulnerable countries to climate change.
According to experts, Cuba can repay the investment capital through savings from lower energy costs in the long term. At the same time, if successful, this model will become a model for other Caribbean island nations - which are also facing the energy and climate change problem.
In the context of high electricity demand and the current system still having many limitations, the 8 billion USD proposal is not only a technical solution, but also a strategic step that can ensure long-term energy security for Cuba.
If implemented, this could become one of the fastest and largest renewable energy transitions in the developing region, while putting Cuba in a pioneering position in the journey of greening the global power system.
