Cuba Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Cuba

  1. https://www.worlddata.info/america/cuba/climate.php, w., „Average Sunshine in Cuba“, Retrieved on 14 July,2024.
  2. https://www.renewableenergyworld.com/baseload/power-shift-in-cuba-seven-reasons-to-watch-the-renewable-energy-sector-in-the-post-fidel-and-trump-era/#gref, r., „Solar radiation in Cuba“, Retrieved on 30 June,2024.
  3. https://www.globalpetrolprices.com/Cuba/electricity_prices/, g., „Cost of Electricity in Cuba“, Retrieved on 30 June,2024.
  4. https://www.researchgate.net/figure/Electricity-Tariffs-in-Cuba-in-2021_tbl1_356943565, r., „Commercial price of electricity“, Retrieved on 7 July,2024.
  5. https://horizontecubano.law.columbia.edu/news/national-electric-grid-and-future-cuban-economy, h., „Reliability Metrics for transmission of electricity in Cuba“, Retrieved on 30 June,2024.
  6. https://data.worldbank.org/indicator/EG.ELC.LOSS.ZS?locations=CU, d., „Distribution Losses of electricity“, Retrieved on 30 June,2024.
  7. https://www.tradecommissioner.gc.ca/cuba/market-reports-etudes-de-marches/0006689.aspx?lang=eng, t., „Solar farms in Cuba“ Retrieved on 5 July,2024.
  8. https://www.pv-magazine.com/2024/03/18/cuba-addresses-energy-crisis-with-2-gw-of-solar/, p., „Solar Panel Installed“, Retrieve on 1 July,2024.
  9. https://www.researchgate.net/publication/381850153_Most_Significant_Economic_Conditions_Associated_with_the_Greater_use_of_Solar_Energy_in_Cuba, r., „price of electricity“ Retrieved on 7 July,2024.
  10. https://www.researchgate.net/publication/357790383_Technical_and_Economic_Analysis_of_Modernization_of_Solar_Power_Plant_A_Case_Study_from_the_Republic_of_Cuba , R., „Cost of electricity produced by solar, Retrieved on 1 July, 2024.
  11. https://origin.iea.org/countries/cuba/electricity, E., „Electricity production in Cuba“, Retrieved on 14 July,2024.
  12. https://havanatimes.org/features/one-cuban-allies-with-the-sun-for-sustainable-living/, h., „Residential solar installation“ Retrieved on 2 July, 2024.
  13. https://www.mdpi.com/1996-1073/14/9/2480, m., „Off-grid solar power“ Retrieve on 6 July,2024.
  14. https://www.pv-magazine.com/2022/01/19/indian-power-company-invites-bids-to-build-900mw-of-solar-parks-in-cuba/, p., „On grid Solar“, Retrieved on 7 July,2024.
  15. https://worldsalaries.com/average-solar-energy-systems-engineer-salary-in-camaguey/cuba/,p, “ Solar Engineer Salaries in Cuba“ Retrieved on 13 November, 2024.
  16. https://worldsalaries.com/average-solar-photovoltaic-installer-salary-in-camaguey/cuba/, sa,  „Solar installer Salaries in Cuba“ Retrieved on 13 November, 2024
  17. https://www.worldometers.info/world-population/cuba-population/, w., „Population of Cuba“ Retrieved on 4 July,2024.
  18. https://www.bc.gob.cu/noticia/aclaraciones-sobre-las-nuevas-tarifas-del-agua/947, w., „Water Price in Cuba“ 11 July,2024.
  19. https://www.numbeo.com/gas-prices/country_result.jsp?country=Cuba, d., “ Gasoline Charges in Cuba“, Retrieved on 11 July,2024.
  20. https://www.tradeclub.standardbank.com/portal/en/market-potential/cuba/taxes, t., “ Tax Rate in Cuba“, Retrieved on 11 July,2024.
  21. https://www.worlddata.info/america/cuba/energy-consumption.php, w., „Energy production summary“, Retrieved on 3 July,2024.
  22. https://www.unionelectrica.cu/ , u., „Official website“, Retrieved on 3 July, 2024.
  23. https://cambioclimatico-regatta.org/index.php/en/key-institutions/item/energas-sa, c., „Energas“, Retrieved on 3 July,2024.
  24. https://openinframap.org/stats/area/Cuba/plants, p., „Power Plants in Cuba“ Retrieved on 6 July,2024.
  25. https://assets.publishing.service.gov.uk/media/5a7dde3340f0b65d8b4e3fe4/Renewable_Energy_in_Cuba.pdf , p., „Wind Energy“, Retrieved on 4 July,2024.
  26. https://www.researchgate.net/publication/359427199_THE_ROLE_OF_HYDROPOWER_IN_THE_CUBAN_ELECTRICITY_SYSTEM_AND_FUTURE_PLANS_TOWARD_2030, r., „Hydropower in Cuba“, Retrieved on 7 July,2024.
  27. https://www.tradecommissioner.gc.ca/cuba/market-reports-etudes-de-marches/0006689.aspx?lang=eng&wbdisable=true, t., „Cuba Imports of fuel“, Retrieved on 3 July,2024.
  28. https://www.maysunsolar.com/blog-solar-panel-testing-and-certification-2023-ensure-quality-and-reliability/, m., „Quality standards and testing“ Retrieved on 7 July,2024.
  29. https://havanatimes.org/features/importing-solar-panels-in-usd-now-allowed-in-cuba/, h., „Government Initiatives“, Retrieved on 4 July, 2024.
  30. http://www.marielsolar.com/, m., „Mariel solar“, Retrieved on 4 July,2024.
  31. https://openinframap.org/stats/area/Cuba/plants?source=solar, s., „solar farms in Cuba“Retrieved on 7 July, 2024.
  32. https://havanatimes.org/features/solar-energy-outlook-in-cuba/, s., „Solar Farms“, Retrieved on 7 July,2024.
  33. https://economictimes.indiatimes.com/industry/renewables/international-solar-alliance-floats-tender-for-1150-mw-solar-project-in-cuba/articleshow/93477386.cms?from=mdr, e., „Solar Project“, Retrieved on 4 July, 2024.
  34. https://www.renova.cu/en/home/, R., „official website“, Retrieved on 4 July, 2024.
  35. http://www.cubasolar.cu/, c., „Cuba Solar“, Official Website“ Retrieved on 7 July,2024.
  36. https://ntpc.co.in/, n., „NTPC ltd“, Retrieved on 7 July,2024.

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Sunshine Duration

On average, Cuba receives 2847 hours of sunshine annually, about 7.8 hours daily. 1

Solar radiation

Cuba receives solar radiation of approximately 5.4 kWh/m2 per day which is equivalent to 1971 kWh/m2/ year. 2

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kWh per kWp installed

The kWh/kWp value for Cuba, based on the solar radiation, is approximately 1971 kWh/kWp per year.

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Average cost per kWh from utility company

The cost of electricity in Cuba in the year 2023 for households is 0.006 USD per kWh.3

For commercial purposes the average cost of electricity is approximately 0.54 USD per kWh.4

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Reliability of electrical power supply grid

The reliability of the electrical power supply grid in Cuba can be measured in the following ways

  • Grid Challenges in Cuba: Cuba’s electrical power supply grid faces significant challenges with frequent blackouts and technical issues​. In Cuba, the residential sector absorbs 60% of the electricity produced, compared to 42% on average in the Caribbean. 5
  • Blackouts in Cuba: On average daily availability of electricity is 8 to 12 hours, indicating 12 to 16 hours of blacks out daily.
  • Transmission and Distribution Losses: Losses are estimated to be around 15% according to the most recent data of 2014, which is higher than the global average due to aging infrastructure​. 6

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Detailed Information

  • All figures have been converted into USD
  • Total solar panel production capacity (installed)

    As of year 2022 survey there were 84 solar photovoltaic parks operational with a 227MW capacity. 7

    Total solar panel production capacity (projected)

    The government of Cuba plans to install 92 solar projects to add an installed capacity of 2 GW by 2028. 8

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    The average costs of different electricity generation sources in Cuba:

    Oil: Cost of electricity produced by oil is 0.53 USD per kilowatt hour at consumption level. 9

    Solar Energy: In 2022, the cost of electricity produced by solar in Cuba was estimated to be  0.034 USD per kilowatt hour. 10

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    Electricity produced by different sources in Cuba in 2021 is as follows: 11

    Cuba produces 86.59% of its energy from oil, 8.85% from natural gas, 2.42% from biofuels, 1.33% from solar PV, 0.67% from hydro, and 0.15% from wind.

    Energy Resource Percentage

    Production (GWh)

    Oil 86.59% 15460
    Natural gas 8.85% 1580
    Biofuels 2.42% 432
    Solar PV 1.33% 119
    Hydro 0.67% 237
    Wind 0.15% 27

    Projected Renewable Energy:

    The country plans to generate 37% of its electricity from renewable sources by 2030. This includes solar, wind, and biomass energy. 5

    Average daily availability of electricity from the national grid (measured in hours)

    UNE reports that less than 40% of oil thermoelectric capacity is operational, causing daily blackouts of 8-12 hours and limiting electricity availability to 16-12 hours per day. 5

    Number of residential solar panel installations

    As of the year 2022 survey, over 160,000 homes out of the 3.9 million residences nationwide – especially in mountainous and hard-to-reach areas receive electricity from solar photovoltaic modules. 12

    Total number of solar farms (installed and projected)

    Installed:

    As of year 2022 survey there were 84 solar photovoltaic parks operational with a 227MW capacity. 7

    Projected:

    The government plans to install 92 solar projects to add an installed capacity of 2 GW by 2028. 8

    Off-grid market demand for solar panels (current and projected)

    Over 160,000 homes out of the 3.9 million residences nationwide – especially in mountainous and hard-to-reach areas, receive electricity from solar photovoltaic modules. 12

    In Cuba, the government has set a target of 700 MW in solar photovoltaic energy by 2030, including rural electrification and off-grid systems.

    Within this framework, 10,000 modular systems of 300 Wp are being installed in isolated communities.13

    On-grid market demand for solar panels (current and projected)

    The International Renewable Energy Agency estimated, from non-public sources, Cuba had 163MW of grid connected solar at the end of 2020. 14

    The government plans to add 2 GW of installed capacity through the construction of 92 solar projects.

    Average monthly income of workers in solar industry (labor cost)

    Salary data for solar energy is not available:

    • The average monthly salary of a solar engineer in the Capital of Cuba is 784 USD.15
    • The average monthly salary of a Solar installer in the Capital of Cuba is 537 USD 16

    Population of the country

    The current population of Cuba is 11,174,366 as of Thursday, July 4, 2024. 79.7 % of the population is urban and 20.3 is rural. 17

    Average overhead costs of solar panel production (with a brief breakdown)

    • Estimate for Factory Rent: 25 USD to 30 USD per meter square per month
    • Industrial Electricity Rates :54 USD per kWh .
    • Water Costs : 10 USD per meter cube. 18
    • Gasoline Charges:25 USD per liter. 19

    Key Components of Administrative Costs

    • Salaries and Wages:
      • Average monthly salary of engineer in Cuba was 145 USD per month in 2023.
      • Average monthly salary of electrician in Cuba is 126 USD per month in 2024.
    • Rent for Office Space: 25 USD to 30 USD per meter square per month.
    • Tax Rate: A tax rate of 2% is applied on wholesale sales, 10% on retail sales and 10% on services. 20

    A summary of the energy infrastructure

    This data is for the year 2021: 21

    • Total installed electricity generation capacity: 20 TWh
    • Total generation: 19.53 TWh
    • Total consumption: 16.10 TWh
    • Per capita consumption: 1,436 kWh

    Generation mix:

    Cuba produces 86.59% of its energy from oil, 8.85% from natural gas, 2.42% from biofuels, 1.33% from solar PV, 0.67% from hydro, and 0.15% from wind.

    Leading players:

    key players in electricity production and transmission are:

    • Unión Eléctrica (UNE) 22
    • Ministerio de Energía y Minas (MINEM)
    • Energas 23
    • Cuban Electric Company (Empresa Eléctrica)

    Transmission & Distribution 23

    The transmission grid operates at 220/110 kV. In total, the country has 2,833 km of 220 kV lines and 4,188 km of 110 kV lines.

    In Cuba, the transmission and distribution of electricity are carried out by several key players:

    1. Unión Eléctrica (UNE):

    UNE is the primary entity responsible for the generation, transmission, distribution, and commercialization of electrical energy in Cuba. It operates the majority of the country’s power plants and manages the national electrical grid.

    Responsibilities: Managing the overall electricity supply, ensuring grid stability, and implementing maintenance and expansion projects.

    2. Ministerio de Energía y Minas (MINEM):

    The Ministry of Energy and Mines oversees the energy sector in Cuba. It is responsible for setting national energy policies, regulatory frameworks, and strategic planning for the energy sector.

    3. Cuban Electric Company (Empresa Eléctrica)

    This state-owned company manages the distribution of electricity across various provinces in Cuba. It ensures the delivery of electrical power from generation plants to end consumers.

    4. Siemens:

    The German conglomerate has signed a Memorandum of Understanding with UNE to modernize Cuba’s energy infrastructure, including power generation, transmission, and distribution

    These organizations work together to ensure the reliable transmission and distribution of electricity in Cuba, supporting the country’s growing energy demands.

    Major power plants:

    Cuba is generating 95.2% of its electricity from fossil fuels (oil, natural gas, diesel), 0.6% from hydropower, and 4.2% from other renewable sources (solar, wind, biomass).

    1. Thermal Power Plants:

    Few major power plants in Cuba that are running on oil as per 2023 are follows: 24

    Name: Termoeléctrica de Felton „Lidio Ramón Pérez“

    • Location: Mayarí, Holguín Province
    • Capacity: 500 MW (two units: 250 MW each)​

    Name:Termoeléctrica 10 de Octubre

    • Location: Nuevitas
    • Capacity: 441 MW

    Name:Termoeléctrica „Antonio Maceo“ (Renté)

    • Location: Santiago de Cuba
    • Capacity: 400 MW​

    Name:Termoeléctrica Mariel Máximo Gómez

    • Location: Mariel
    • Capacity: 400 MW​

    Name:Termoeléctrica Carlos Manuel de Céspedes

    • Location: Cienfuegos
    • Capacity: 316 MW​

    Other Renewable Energy sources

    Wind energy: 25

    In Cuba, wind energy use is relatively new. Some major wind farms are as follows:

    La Herradura Wind Farm

    • Location: Las Tunas, Cuba
    • Capacity: 102 MW
    • Operational Date: Planned for 2023

    Gibara Wind Farm

    • Location: Holguín, Cuba
    • Capacity: Approximately 10 MW
    • Operational Date: Various phases completed

    Cabo Lucrecia Wind Farm

    • Location: Holguín, Cuba
    • Capacity: 50 MW
    • Operational Date: Planned for 2022

    Hydropower: 26

    Cuba currently uses a little more than 10 percent of its potential for producing hydroelectricity.

    In late 2011, the country had 180 hydroelectric plants. Some major farms are as follows:

    The ten most productive hydro power plants in Cuba are:

    Name Province Capacity (MW) Launch Year
    Mayarí MD Holguín 2.85 2018
    Bueycito Granma 1.46 2012
    Nuevo Mundo Holguín 2 2010
    Zaza Sancti Spíritus 2.7 2009
    Corojo Granma 2 2003
    Chambas Ciego de Ávila 1.04 2003
    C. M de Céspedes Santiago de Cuba 1.53 1998
    Yara Granma 2.6 1986
    Hanabanilla Villa Clara 43 1968
    El Guaso Guantánamo 1.05 1917

    Energy Imports: 27

    According to the Cuban National Statistics and Information Office (ONEI), in 2020 Cuba imports fuel worth 2.992 Billion USD.

    Some of the government regulations surrounding solar panel production

    Quality standards and testing:

    Solar panels in Cuba need to be certified to ensure they meet specific quality and safety standards. This certification process typically involves: 28

    • ISO Standards: Cuban solar panel manufacturers adhere to international standards such as ISO 9001 for quality management and ISO 14001 for environmental management.
    • IEC Standards: The International Electrotechnical Commission (IEC) standards, such as IEC 61215 for design qualification and type approval and IEC 61730 for safety qualification, are also followed to ensure the panels‘ performance and safety

    Testing Conditions 

    Solar panels undergo extensive testing to ensure they can withstand various environmental and operational conditions:28

    • Environmental Testing: Panels are tested for their resistance to factors like temperature extremes, humidity, wind, and UV radiation to ensure durability and efficiency over their lifespan​
    • Mechanical Testing: This includes tests for mechanical load resistance, impact resistance (e.g., hail), and structural integrity​.
    • Electrical Testing: Tests focus on evaluating the electrical performance, including efficiency, power output, and safety aspects such as insulation resistance and potential-induced degradation (PID)​.

    Government initiatives in solar panel production (includes investments and subsidies)

    29

    • Domestic Solar Panel Production: Ernesto Che Guevara solar factory is engaged in producing photovoltaic modules with a generation capacity of 15,000 kWh per year. This production aims to support the country’s renewable energy targets and reduce dependency on imported fossil fuels​.
    • Duty-Free Imports: Recent regulations allow individuals to import photovoltaic systems and related components duty-free.
    • Tax Incentives: Tax incentives have been introduced, including an 8-year profit tax exemption for renewable energy projects and waiving customs taxes on imported equipment for solar projects.
    • Self-Sufficiency and Surplus Sales: In 2023, the Ministry of Finance and Prices issued Resolution 238 which doubled the price paid to independent producers for renewable electricity fed into the national grid.
    • Renewable Energy Goals and Policies: Cuba aims to increase the proportion of renewable energy in its electricity mix to 37% by 2030 (2,000 MW). The government plans to install 92 new Cuba solar farm projects totaling 2 GW of capacity by 2028.

    In 2019, Decree Law 345 established regulations to increase the share of renewables and gradually decrease fossil fuel consumption, further promoting Cuba solar energy initiatives.

    Notable solar projects in the country (installed and projected)

    Installed Projects

    Mariel Solar: 30

    • Location: The project is divided into 3 areas: Free Havana, Horseshoe, Varela and Clover
    • Capacity: 62 MW

    Parque de Energía Solar Fotovoltaica TBD

    • Location: Guajaibón, Zona Especial de Desarrollo Mariel, near Havana, Cuba
    • Capacity: 23 MW (with plans to reach 150 MW by 2024)
    • Future Plans: Expansion to 150 MW by 2024 and installation of 550 W photovoltaic panels in five railway stations in the Mariel area.

    These farms are distributed in different regions of Cuba, top 10 locations by production are as follows:31

    Name Operator Output
    Parque Fotovoltaico La Herradura Mariel Solar S.A. 15.00 MW
    Parque Fotovoltaico Varela Mariel Solar S.A. 15.00 MW
    Parque Fotovoltaico Trébol Mariel Solar S.A. 12.60 MW
    Parque Fotovoltaico Habana Libre Mariel Solar S.A. 10.00 MW
    Parque Fotovoltaico Yaguajay UNE – SEN 8.40 MW
    Parque Fotovoltaico Antonio Pías Gómez UNE – SEN 5.00 MW
    Parque Fotovoltaico Chambas UNE – SEN 5.00 MW
    Parque Fotovoltaico Yaguaramas UNE – SEN 5.00 MW
    Parque Fotovoltaico Cabaiguán UNE – SEN 4.40 MW
    Parque Fotovoltaico Ceballos UNE – SEN 4.40 MW

    Santa Teresa Solar Plant: 32

    • Capacity: 5 MWp
    • Location:  naval base at Guantanamo

    Projected Solar Farms

    2 GW Solar Capacity Expansion:

    • Location: Various sites across Cuba
    • Capacity: 2000 MW
    • Details: This initiative is part of the broader strategy to achieve 24% renewable energy penetration by 2030.

    ISA 1150 MW Solar Project: 33

    • Capacity: 1150 MW
    • Details: The International Solar Alliance (ISA) and NTPC have initiated a tender process for a 1,150 MW solar project in Cuba. The project is expected to attract international investment.

    NTPC Cuba Solar PV Park: 14

    • Location: 175 locations
    • Capacity: 900 MW at 2.16TWh of solar power per year.
    • Details: International funding, such as the $15 million loan from the Abu Dhabi Fund for Development (ADFD), is crucial for financing these projects​

    Some of the notable solar companies (plus brief details on what they do)

    1. Mariel Solar: Active in Cuba since July 2022, it is the first utility-sized solar park in Cuba and one of the largest in the region. This project will save the government approximately $20 millionper year
    2. Renova: RENOVA is a micro, small, and medium-sized enterprise (MIPYME) based in Camagüey. This private company focuses on the installation of photovoltaic systems in state enterprises, private businesses, and residential areas. 34
    3. Ernesto Che Guevara Electronic Components Company: State-owned company producing photovoltaic modules​.
    4. CUBASOLAR: CUBASOLAR is a Cuban non-governmental organization dedicated to promoting renewable energy sources, including solar energy. They work on various projects and educational initiatives to increase solar energy adoption and sustainability practices throughout Cuba. 35
    5. NTPC Ltd: An Indian energy company partnering with the International Solar Alliance (ISA) to launch several solar projects in Cuba, including a tender for 1,150 MW of solar capacity and 150 MW/150 MWh of battery energy storage systems across the island​ 36

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