Cuba plans to close 2026 with 1500 MW of operational photovoltaics and complete a series of BESS projects in the coming months, as part of a megaplan to respond to the operational difficulties of the National Electric System, whose conventional generation is insufficient to meet demand and sustain grid stability.
“We are working on a 2000 MW photovoltaic program, spread across 96 solar parks, of which we already have 51 completed,” said Argelio Jesús Abad Vigoa, First Deputy Minister of Mines and Energy of Cuba , during his participation in the Future Energy Summit (FES) Government and Investment.
The schedule also includes battery storage using four 50 MW units , with the first installation operational and two more planned for October 2026. The fourth would complete the projected capacity between December and early 2027.
“We are working on the installation of BESS systems, primarily to achieve stability, because the introduction of renewable energies must be accompanied by regulation and stabilization systems,” the official explains.
The growth in photovoltaics coincides with a marked reduction in operational thermal capacity, as restrictions on importing hydrocarbons keep more than 1400 MW of distributed generation using engines unavailable.
“We must rebuild our thermal power generation capacity using the crude oil we extract and rapidly introduce renewable energy sources. This will allow for a level of stability in the system that will prevent the constant blackouts that Cuba has suffered in recent times,” the deputy minister emphasized.
The truth is that the transformation of the energy matrix is already registering changes in official indicators, with renewable sources representing 3.6% in 2024 and growing to around 11% by the end of 2025. Meanwhile, the projection for 2026 raises that share to 15%.
“We even have plans to reach 24% penetration of renewable energy in the energy matrix by 2030,” Abad Vigoa explained.
The plan also sets an additional target of meeting 40% of demand with clean energy sources by 2035 , while achieving a fully renewable energy supply by 2050 is the goal. The portfolio includes wind power and other technologies, although photovoltaics is the focus of immediate deployment.
Outside of large-scale renewable energy parks, consumers and the general population have accumulated 566 MW of installed renewable generation capacity through their own management , driven by tax and regulatory incentives. Available data does not break down this capacity by technology or specify the volumes allocated for self-consumption or grid injection.
Foreign capital, PPA contracts and new conditions for investing
Cuba has enabled energy projects with 100% foreign participation , without requiring a mandatory partnership with state-owned companies, and offers income tax exemptions of up to eight years during the investment recovery period.
The incentives also include tariff exemptions for importing renewable equipment , greater autonomy in hiring workers, and the possibility of establishing power purchase agreements (PPAs), within the framework of the decentralization of electricity generation.
“Furthermore, there are a number of structural and economic transformations underway in Cuba—176 in total. One of these is direct access to the foreign exchange market for investors themselves. This was a problem and something investors were requesting, in addition to the elimination of restrictions on payments between foreign suppliers and their Cuban counterparts,” the official pointed out.
The reforms coincide with difficulties in supplying hydrocarbons and the trade restrictions imposed by the United States. On January 29, 2026, the Trump Administration issued an executive order that includes additional tariffs on products from countries that supply oil to Cuba.
“In the strategy that was designed, in addition to accelerating the transition, we must seek energy sovereignty,” Abad Vigoa reaffirmed.
The next milestones of the program are concentrated in October, with an additional 100 MW of BESS, and at the end of 2026, with the goal of 1,500 MW of photovoltaic capacity. To complete the remaining storage, the Ministry anticipates a timeframe extending to early 2027, while the 2,000 MW of solar capacity does not yet have a specified completion date.
By Energía Estratégica
By Emilia Lardizabal
