In a historic move, the Cuban government has announced that for the first time, individuals and entities generating electricity through renewable energy sources in businesses, institutions, or homes now have the option to sell their produced energy directly to third parties. This includes the capability to continue selling to the state-run Unión Eléctrica.
The initiative is part of a broader strategy aimed at boosting electricity production amid the nation's ongoing energy crisis.
Oscar Pérez-Oliva Fraga, the Vice Prime Minister and Minister of Foreign Trade and Foreign Investment, explained on the Mesa Redonda program that previously, electricity producers could only sell their energy to the Unión Eléctrica for distribution. Now, in addition to this option, they can directly sell to "another consumer," which could be a business, an industry, or any institution in the country with the means to purchase it.
This decision aligns with a larger plan to enhance incentives for installing renewable energy sources at both corporate and domestic levels. The ability to engage in direct sales is designed to support the government's agenda to increase renewable energy generation.
The announcement was accompanied by references to other energy measures. It was noted that efforts are underway to increase domestic oil production, even from existing wells that have the potential to yield more. Resources for this are being secured through various "avenues" and "negotiations," involving the state oil company CUPET and partnerships with foreign companies.
Additionally, the segment highlighted that beyond boosting energy supply through oil and renewables, there are plans to implement measures "focused on saving," although specific details on these measures were not provided.
Understanding Cuba's New Energy Policies
What is the new energy policy announced by the Cuban government?
The new policy allows individuals and companies generating electricity through renewable sources to sell it directly to third parties, in addition to the state-run Unión Eléctrica.
How does this policy aim to address Cuba's energy crisis?
The policy is part of a broader strategy to increase electricity production, incentivize renewable energy installations, and expand domestic oil production, thereby addressing the ongoing energy crisis.
Who explained the details of the new energy policy?
Oscar Pérez-Oliva Fraga, the Vice Prime Minister and Minister of Foreign Trade and Foreign Investment, provided details during the Mesa Redonda program.