HAVANA, Dec 12 (IPS) – With Decree 110, revealed on 26 November, Cuba made it obligatory for main shoppers, whether or not they’re state or non-public entities, to put money into using renewable vitality sources, whereas the vitality disaster dealing with the nation worsens.
In accordance with the decree, state and personal financial actors, representations of overseas establishments and associations should assure in new investments considered “main shoppers of vitality carriers” that half of the electrical energy they eat throughout daylight comes from renewable vitality sources.
If they can not set up photo voltaic panels, as a result of infrastructure of their premises, these entities should enter into contracts with the state-owned Unión Eléctrica – the guarantor of the era, transmission and commercialisation of electrical energy – and connect with photovoltaic parks.
Breaking these provisions can result in fines, interruption of electrical energy service for as much as 72 hours and different sanctions.
“The measure displays a failure within the coverage of incentives for funding in renewable vitality sources. It might favour the overall inhabitants, however it would not change the truth that the change within the vitality matrix is being imposed with an iron fist,” Daniel López, a self-employed Havana resident, instructed IPS.
Entities thought-about main shoppers – people who, within the final 12 months, have a median consumption of 30,000 kilowatts (KW) or 50,000 litres of gasoline – can have three years to make investments to cowl the 50% daytime use requirement.
Reactions on social media instantly adopted the information: many web customers celebrated the decree, some have been sceptical about its implementation, and a major quantity feared for the impression it might have on the non-public sector.
“Is it viable offering a greater service or growing my manufacturing to should pay extra (by investing in photo voltaic panels), and never simply in taxes? What number of companies are we going to lose due to this decree? Funding in Cuba is more and more troublesome,” commented person Horus in an article on the topic, revealed in Cubadebate, essentially the most broadly learn state-run information web site within the nation.
Certainly, the legislation might discourage entrepreneurship in mini-industries or productive areas that usually eat numerous electrical energy, and even trigger companies to lift the costs of some services to recoup funding prices.
Since 2020, this Caribbean island nation with 10 million individuals has been dealing with nice difficulties in assembly its home electrical energy demand with its manufacturing crops.
The instability of the electro-energy system has been so evident that, in lower than two months, Cuba has suffered three normal energy cuts – the newest on Wednesday 4 December – which have left a whole bunch of 1000’s of individuals with out electrical energy for days.
Within the absence of incentives
The Patio El Triunfo challenge, positioned within the capital’s Regla municipality, is an instance of a non-public enterprise that’s self-sufficient in renewable vitality sources. It has put in photovoltaic panels with a era of 10 kilowatts (KW), in addition to photo voltaic heaters and dryers, and a 0.5 KW wind turbine.
This “clear” vitality covers the daytime demand of the home and 4 companies which can be leased on the premises, together with an auto mechanic’s workshop and a lathe store.
Though the workshops have been in existence since 2010, in 2018 the challenge started the autonomous manufacturing of electrical energy, the excess of which it sells to Unión Eléctrica.
The chief of the challenge, Félix Morfis, who can be the Regla consultant of Cubasolar, a non-governmental organisation that has been selling using renewable vitality sources in Cuba since 1994 to interchange polluting ones, criticises the costs of photo voltaic panels and the bureaucratic obstacles to accessing credit score and shopping for them.
“Plainly the Cuban authorities has no curiosity by any means in individuals placing up photo voltaic panels. They promote it, they hype it lots, however really there may be nothing in hand,” he instructed IPS.
Within the retail markets of the state-owned firm Copextel, a primary one-kW era module prices 2,551 MLC, the freely convertible forex, which is digital and whose reference worth is the greenback.
The common wage in Cuba is 4,648 pesos, about US$38.7, in response to the official alternate price of 120 pesos to 1 greenback.
In 2021, the Ministry of Finance and Costs issued Decision 359,, which set the value for vitality – from renewable sources – delivered to the Nationwide Electrical energy System (SEN) by impartial producers within the residential sector: 3 pesos per kilowatt hour (kWh), about 0.025 {dollars} on the official alternate price.
In October 2023, the identical ministry accepted Decision 238, which doubled that quantity.
“They’re paying us 6 pesos (US$ 0.05) per kWh, however what I spend, they cost me via the traditional system. They promote it to me at a excessive value and pay me cheaply. There isn’t a incentive,” Morfis added.
The “regular system” that Morfis mentions is a progressive tariff that applies to the residential sector, which after exceeding 450 KWh of amassed consumption, begins to value greater than six pesos per KWh, till it reaches 20 pesos per KWh (about US$ 0.17).
In any case, it’s a subsidised value, in response to the authorities, in order that the price of paying for electrical energy via the nationwide electrical energy system is simply marginally decrease than importing or shopping for photo voltaic panels in overseas forex. Ultimately, it’s extra worthwhile to not put money into renewable vitality sources.
Even so, increasingly more persons are investing in photo voltaic panels with batteries, and personal companies that commercialise these gadgets have multiplied resulting from recurrent energy outages and gasoline shortages.
With no new playing cards in hand, the federal government imposed funding in renewable vitality sources via Decree 110.
“Essentially the most troublesome factor is how you can make it simpler for all the businesses to pay for these panels,” Néstor Pérez, a member of the Patio El Triunfo challenge, instructed IPS.
Overview of renewable vitality sources
Along with decentralised vitality era and decreasing the burden on the state, the brand new decree goals to cut back on imported-fuel dependency.
Since 2019, when the federal government issued Decree-Regulation 345 on the “improvement of renewable sources and the environment friendly use of vitality”, this coverage has been a precedence.
Cuba goals for renewable vitality sources to account for twenty-four% of its vitality matrix by 2030.
President Miguel Díaz-Canel introduced on 27 November that greater than 2,000 megawatts (MW) of photovoltaic vitality, equal to 2 million KW, is deliberate for the following three years.
Nonetheless, of the 19,825 gigawatt hours (GWh) produced in 2023, 46% got here from thermoelectric crops and 12.6% from utilizing thermal vitality from oil-fired pure fuel, in response to information from the Nationwide Statistics and Data Workplace (Onei).
Likewise, 13.8% was produced by gensets, electrical energy mills interconnected to the system that run on diesel and gasoline oil, and 22.7% from the six floating crops contracted to the Turkish firm Karpowership.
Solely 0.5% got here from hydroelectric crops and 1.2% from wind and photovoltaic energy.
© Inter Press Service (2024) — All Rights ReservedAuthentic supply: Inter Press Service
