Cuba''s Energy Storage Crossroads: Balancing Renewables and
You''d think an island blessed with year-round sunshine would''ve cracked the code on renewable energy storage. Yet Cuba''s power outages increased by 23% in 2023 despite adding 450MW
Cuba's energy sector is at a crossroads. The country's mostly fossil fuel-fired energy system faces a number of longstanding and serious challenges, including breakdowns at aging power plants, decreasing fuel imports and fuel shortages, and the growing threat of climate change-related disruptions.
Over the past 10 years, Cuba has begun to embark on an energy transition. Recent shifts in law and policy create new and promising opportunities and indicate a desire on the part of Cuba's policymakers to transition to a cleaner, more climate resilient energy system.
While inflation is estimated to have dropped to 30% in 2023, the price of food increased 78%. Residents of Cuba are expected to experience a new wave of inflation in 2024 following the government's announcement of a new austerity plan that will include price and tax increases and cuts in subsidies.
Compounding these problems, Cuba is facing a severe economic crisis. In 2022, year-on-year inflation was 39% (down from 77% in 2021). While inflation is estimated to have dropped to 30% in 2023, the price of food increased 78%.
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