Cuba Turns to Renewable Energy as U.S. Blocks Fuel Shipments

Oct 16

Written By CEDA The Center for Engagement and Advocacy in the Americas

Since January, a de facto U.S. oil blockade has cut off Cuba’s access to critical fuel supplies, causing a severe humanitarian and energy crisis that often leaves much of the island without electricity for more than 20 hours a day. Cuba has experienced seven nationwide blackouts this year alone, further straining an already fragile health care system, worsening medicine shortages and surgical backlogs, disrupting humanitarian aid deliveries, and undermining access to water and agricultural production. While blackouts are not new, the scale of the current crisis has reached unprecedented levels, with consequences extending far beyond the electricity grid.

CEDA has tracked the de facto blockade’s effects since January, examining its implications for Cuba’s energy supply and on the people bearing the brunt of the crisis. In an interview earlier this year, energy expert Jorge Piñon warned, “Anybody that comes out of the woodwork to help Cuba, I think the U.S. will react negatively.” Subsequent U.S. actions have underscored that risk, with U.S. authorities intercepting and diverting various fuel shipments headed toward the island. Even the Administration’s limited opening for private-sector fuel imports has faced constraints. In early October, U.S. authorities seized $2.8 million in fuel shipments intended for Cuba’s private sector, alleging that the fuel was actually destined for Cuba’s government. The island has not received a sizable shipment of imported fuel since Russia’s March delivery.

Given the realities on the ground, Cuba’s transition to renewable energy has taken on greater urgency, with many businesses and experts pointing to it as a place of opportunity in the absence of fuel imports. However, Cuba's push toward renewables predates the current crisis. The government has long committed to growing renewable energy generation, while individuals and businesses have increasingly turned to solar panels and batteries to cope with chronic outages spanning decades. Cuba now has one of the fastest solar adoption rates in the hemisphere.

But how viable is this solution given the financial, logistical, and regulatory barriers to expanding renewable energy access in Cuba? To understand this acceleration, the challenges limiting its expansion, and its potential to help rebuild the country’s electricity system, CEDA spoke with Dan Whittle, Associate Vice President at the Environmental Defense Fund (EDF). Read the full interview.

During a July visit to Cuba, Whittle observed that “people were talking not about how long the outages were, but how long they had power each day.” Expanding solar capacity could help address these shortages, but financing remains a major obstacle. Whittle noted that proposed utility-scale solar projects backed by international investors have often stalled because of concerns about returns on investment.

Despite these obstacles, Cuba has made progress in expanding its solar infrastructure. By September 2026, the country reportedly had 144 solar farms, with a combined installed capacity of approximately 1.5 gigawatts, compared with an estimated need of 6.7 gigawatts. China remains the largest supplier of solar technology to Cuba and has signaled plans to help build an additional 90 to 100 solar parks by 2028, adding two gigawatts of capacity. However, these projects lack battery storage, which would significantly increase their ability to provide reliable electricity beyond daylight hours.

Despite tightened economic restrictions under the Trump administration, including threatening sanctions against entities doing business with government-linked companies, exports of U.S. solar technology to the island have surged. According to U.S. Census data, the US exported $6.3 million worth of solar cells and modules to Cuba in the first seven months of 2026, a 1,070 percent increase from 2025. Whittle described the U.S. role as contradictory: “They've restricted Cuba's access to solar panels, batteries, and other renewable energy technologies through sanctions. But they have allowed some private businesses in the US to import under the Support for the Cuban People exception.”

Whittle argues that reliable electricity should be a shared goal for Cuba and the US, given its role in economic development, investment, and public well-being. The US has the expertise and industry to help drive Cuba’s transition; what it lacks is the policy to do so. Any transition, he stressed, must reach beyond households that can buy their way out of the crisis: “it’s critically important to think about how to ensure equitable access, not just for those who can afford solar panels and batteries or high energy prices.”

Solar power alone won’t end Cuba’s energy crisis. With financing, storage, and international cooperation, though, it could anchor a more reliable and sustainable grid. Cuba’s government has already approved two new resolutions to encourage residential rooftop solar and battery storage, but, as Whittle noted, “as long as U.S. sanctions are in place, it’ll be extremely difficult to get the international financing required to scale up solar in the country.” In the near term, additional fuel imports and temporary generation, such as floating power plants, could ease the strain while longer-term solutions take shape. However, U.S. policy and Cuba’s reforms must be complementary to ensure actual movement on solving the energy and humanitarian crises.

U.S.-CUBA NEWS

US Stops 90 Fuel Shipments Bound for Cuba

On October 7, U.S. Immigration and Customs Enforcement (ICE) announced that federal authorities had stopped 90 Cuba-bound biodiesel shipments at Port Everglades and Houston worth nearly $3 million. The statement alleged that the shipments violated U.S. export laws because they were destined for ENETEC S.A., a state-owned fuel trader in Cuba that the Trump administration sanctioned on July 13. While charges against individuals or businesses involved in these shipments have not been announced, a person connected to one of the companies whose shipments were seized told the Miami Herald that the fuel was intended for private businesses, which is currently allowed under U.S. law. The Herald also reviewed written confirmation from OFAC that the company’s transactions were authorized. On October 12, Cuba’s Minister of Energy and Mines Vicente de la O Levy denied that ENETEC or another state-owned company had contracted for the fuel.

In February, the Department of Commerce’s (DOC) Bureau of Industry and Security (BIS) clarified that qualifying fuel exports to Cuba’s private sector could proceed without individual BIS licenses and the U.S. Department of the Treasury (USDT) has issued individual licenses permitting fuel exports to private Cuban businesses. Since the changes, U.S. fuel exports to Cuba reached $231.7 million between January and August, making the US Cuba’s main fuel supplier. The nearly $3 million in seized shipments represents only a small fraction of that broader trade. Despite this uptick in fuel exports, it is not nearly enough to resolve Cuba’s energy crisis and widespread blackouts.

U.S.-Funded Humanitarian Aid Arrives in Matanzas

On October 14, a shipment of U.S.-funded food and hygiene supplies arrived at Varadero’s international airport for distribution by the Catholic charity Cáritas Cuba to an initial 700 families in Matanzas. Local church volunteers identified households facing food insecurity and limited access to water, prioritizing older adults, people with disabilities or chronic illnesses, pregnant and nursing women, and children under five. Cáritas plans to reach 18,200 households across the diocese.

The shipments are part of the Department of State’s (DOS) $60 million award to Catholic Relief Services in July which fall under the U.S. government’s $100 million humanitarian aid assistance commitment to Cuba. However, U.S. sanctions have also disrupted humanitarian deliveries by causing shipping companies to suspend services and banks to reject payments. Humanitarian exemptions have not been enough to address the barriers in transporting supplies and financing deliveries that aid organizations face.

U.S. Coast Guard Repatriates Six Cubans and a Cuban Man is Rescued Adrift off Key Biscayne

On October 13, the U.S. Coast Guard repatriated six Cubans following two operations in the Florida Straits. On October 8, crews intercepted three Cuban men aboard a vessel southwest of Cay Sal. One was medically evacuated to shore. On October 11, crews rescued four people from a broken-down Cuban fishing vessel approximately 50 miles southeast of Key West. These repatriations follow the recent return of 14 Cubans on September 10.

In a separate operation on October 12, the U.S. Coast Guard and Customs and Border Protection (CBP) crews rescued a Cuban man after a boater spotted him alone approximately 16 miles east of Key Biscayne, Florida. He was floating on a homemade foam raft no larger than a small mattress. According to CBP, Miami-Dade Fire Rescue personnel cleared him before crews transferred him to the Coast Guard cutter for processing. CBP has not confirmed whether he was subsequently released or repatriated.

His family identified the man as Enrique René Reyes Martínez, a 38-year-old originally from Santiago de Cuba who, according to relatives, left Cojímar on the preceding Thursday to go fishing before a storm swept him offshore. Other acquaintances suggested he intended to emigrate. Javier Díaz, a Cuban journalist based in Miami, shared the family’s appeal against his deportation. CBP presented the rescue as a warning about the dangers of maritime migration.

US Sanctions Cuba’s Banco Internacional de Comercio

On October 15, DOS designated Banco Internacional de Comercio S.A. (BICSA) to be sanctioned under the May 1 executive order. DOS alleged that the state-owned bank had provided services to Iran’s sanctioned Karafarin Bank since at least 2022. OFAC clarified that foreign businesses and banks can take steps to end their dealings with BICSA through November 14 without being targeted for sanctions. The limited period also covers entities in which BICSA holds at least a stake of 50 percent.

U.S. persons were already generally prohibited from transacting with BICSA without authorization. The designation thus impacts foreign counterparts more, increasing sanctions risks, and follows September 30 measures expanding sanctions enforcement and restricting banking access.

SOUTHCOM Deploys Unmanned Systems at Guantánamo Naval Base

U.S. Southern Command (SOUTHCOM) announced that General Francis L. Donovan visited the U.S. naval base at Guantánamo Bay to inspect unmanned equipment supporting regional military operations. The deployment marks the first step toward developing a training and mission-support site for SOUTHCOM’s Autonomous Warfare Command, which aims to expand the use of unmanned technology in military operations across Latin America and the Caribbean.

Mr. Donovan’s visit follows his May exchange with senior officials from Cuba’s military at the base’s perimeter concerning operational security, which took place during heightened tensions over possible U.S. military action against Cuba. The proposed training site would give Guantánamo a continuing role in developing and supporting unmanned operations across the region. The expansion comes amid reported U.S. military contingency planning involving Cuba.

U.S. Sanctions Disrupt Cuban Zinc Exports

On October 2, Cuba’s government published a resolution authorizing the temporary closure of the Castellanos–Santa Lucía mining operation through January 30, 2027. The operation is jointly owned by state-owned Geominera and private commodities trader Trafigura. The resolution cited energy shortages, logistical difficulties, and export obstacles. The closure follows Trafigura’s notification to some Chinese customers in June that they would no longer receive zinc concentrate from Castellanos as U.S. restrictions squeezed fuel supplies. The resolution does not explicitly attribute the closure to sanctions, but identifies energy shortages as barriers to continued extraction and processing. The suspension further restrains Cuba’s export earnings and its ability to finance imports.

US Gives Cuba Lowest Rating on Combating Human Trafficking

On October 8, DOS released its annual Trafficking in Persons Report, which placed Cuba in Tier 3. The lowest classification applies to governments DOS assesses as failing to meet minimum anti-trafficking standards without making significant efforts to address those shortcomings. Cuba joins Nicaragua and Venezuela in this category and has held the designation since 2019.

DOS again identified alleged forced labor in Cuba’s overseas professional missions, citing recruitment through deception, threats of retaliation, and withholding of 50 to 95 percent of workers’ wages. The report estimates that 18,000 Cuban workers participated in overseas government missions across 52 countries in early 2026, down from 26,000 the previous year. Cuba’s government maintains that revenue from these missions helps fund domestic health services. The report also cites allegations of unlawful labor involving political prisoners. On October 10, Foreign Minister Bruno Rodríguez Parrilla rejected the assessment and accused the US of using it to justify pressure against Cuban medical cooperation.

New Flights to Connect Fort Myers with Havana and Santa Clara

Two routes from Southwest Florida International Airport in Fort Myers to Havana and Santa Clara are scheduled to begin November 27, with service on Fridays. The new routes would allow southwestern Florida residents to fly to Cuba without traveling to Miami or Tampa, while service to Santa Clara will shorten onward journeys for travelers visiting central Cuba. These connections could ease family visits and the delivery of supplies as Cuba’s ongoing crisis deepens.

IN CUBA

UN Allocates $4 Million for Humanitarian Assistance in Cuba

On October 2, the United Nations (UN) announced $4 million in emergency funding for Cuba, identifying the island among 12 of the world’s most underfunded humanitarian crises. The allocation comes from the Central Emergency Response Fund (CERF), as part of a $160 million package supporting lifesaving assistance across the selected countries and territories, but does not yet specify which programs Cuba's allocation will fund.

Still, the additional funding falls well short of Cuba’s humanitarian needs. In March, the UN expanded its humanitarian response in Cuba to a $94.1 million action plan covering nearly two million people, largely in response to increased oil and energy restrictions. The plan prioritizes maintaining essential services and sustaining life-saving supply chains, with a focus on health, water, food security, and education, alongside alternative energy solutions. By mid-September, the UN had received only approximately $42 million, leaving a shortfall exceeding $52 million. The new UN allocation amounts to less than one-tenth of that funding gap. UN agencies remain active on the island. In July, World Food Programme (WFP) food and logistical assistance reached more than 800,000 people, while the UN Population Fund (UNFPA) delivered maternal healthcare supplies to eastern Cuba between January and July.

Cuba Allows Travelers to Pay Dollar Tariffs on Excess Imports

On October 5, Cuba announced new customs regulations allowing travelers to clear goods exceeding personal-import limits by paying tariffs and customs service fees in U.S. dollars. The measures took effect on October 12 and retain existing limits of five mobile phones, three computers or tablets combined, and two household appliances of the same type. Instead of confiscation, travelers can opt for separate commercial clearance, with progressive tariff rates ranging from 15 percent on the first $2,000 of customs-assessed value to 30 percent on amounts above $6,000. Goods cleared under this process face a flat 30 percent tariff.

The change implements part of the economic reforms announced in June and could make it easier for travelers to bring goods to households in Cuba that rely on diaspora support by reducing the risk of confiscation. However, dollar-denominated fees add to the cost of bringing those goods into Cuba. The measure is likely to benefit families already receiving support from abroad, while offering little relief to those without those connections or resources.

Cuba Expands Private Participation in Oil and Gas Sector

On October 12, Cuba published a new decree expanding opportunities for domestic private businesses and foreign investors to participate in its oil and gas sector. The measures take effect on October 19 and will replace legislation from 1938 and 1959. Cuban micro, small, and medium-sized enterprises (MSMEs), larger private companies, and non-agricultural cooperatives can apply for concessions to explore and extract oil and gas subject to government approval. Concessions can last up to 30 years, with possible 10-year extensions. Investors would finance operations and pay royalties, fees, and taxes in exchange for ownership of the oil and gas extracted.

The decree advances the economic reforms announced in June and permits private participation in refining, storage, transportation, and sales under separate licenses. Some arrangements involving domestic private businesses will still require additional regulations. Declining domestic oil production and U.S. restrictions on fuel supplies make additional investment particularly urgent. Cuba-Petroleum Union Deputy Director Irenaldo Pérez Cardoso said at a recent press conference that U.S. restrictions continue to limit Cuba’s ability to attract investment despite the new framework. The decree expands who can participate in the sector, but the state retains control over project approvals and strategic infrastructure, making implementation a test of how much room the reforms will create for private businesses.

Industriales Becomes First Cuban Baseball Team to Display Private Sponsor’s Logo

Havana’s Industriales baseball team has added the logo of private fuel distributor A Granel to its uniforms, a first in the National Baseball Series’ 65-year history. The company’s advertising also appears at Estadio Latinoamericano, the team’s home stadium. The sponsorship is intended to support equipment, transportation, meals, and field improvements. It follows sports sponsorship regulations approved in December 2025 permitting authorized sponsor logos on team uniforms.

Private sponsorship marks a departure from Cuba’s longstanding rejection of commercial advertising in domestic sports and reflects businesses’ expanding role beyond retail and services. Private companies are increasingly supplying food, distributing fuel, and sustaining deliveries as public services deteriorate. The economic reforms announced in June broadened opportunities for private investment, but U.S. banking restrictions continue to complicate businesses’ access to financing and payments. The league has already divided this season into eastern and western zones to reduce travel and fuel consumption.

CUBA'S FOREIGN RELATIONS

Uruguay Creates New Path to Permanent Residency for Cubans

On October 8, Uruguay approved a decree establishing a permanent residency pathway for eligible migrants who entered the country before January 1, 2026. Applicants must have a pending asylum claim that they agree to withdraw or a claim that received a final rejection. They must also have entered through an authorized checkpoint and lack another residency pathway. The decree takes effect 90 days after publication, after which applications will be accepted for 12 months. Cubans accounted for approximately 89 percent of Uruguay’s more than 30,000 pending asylum applications at the end of June 2026.

The measure extends Uruguay’s 2024 regularization initiative and offers eligible Cubans a route to a permanent status separate from recognition as refugees. For Cuban migrants, this could turn years of temporary documentation into a more stable basis for building their lives in Uruguay. CEDA’s Regional Migration Program Manager María Teresa Urueña told Foreign Policy that Uruguay’s decision is “a show of leadership that should be celebrated” and “a concrete response to the needs of asylum-seekers and Cubans in particular.” She emphasized that it signals to other countries that policies advancing regularization are possible, even as many in the region retreat from such initiatives.

Cuban Health Professionals Return to Jamaica Under Individual Contracts

On October 7, Jamaica’s Health Minister Christopher Tufton announced that 157 Cuban doctors and nurses have been re-engaged to date under individual contracts. Recruitment resumed in July with an initial announcement that 50 professionals would return. With the 43 Cuban professionals who remained in Jamaica, they bring the total serving in the public health system to 200.

The previous bilateral agreement expired in February 2023, but Cuban medical personnel continued working while the governments negotiated a replacement. Jamaica ended the program in March 2026 after those negotiations failed. The decision followed U.S. pressure on countries to end Cuban medical missions, alleging forced labor involving withheld wages and restrictions on workers’ movements. Jamaica’s own review found that workers did not themselves hold their passports and that salary payments went to Cuban authorities without guarantees specifying the workers’ share. The passport issue was corrected, but payment concerns remain unresolved. Foreign Minister Kamina Johnson Smith attributed the termination to the failure to agree on terms consistent with Jamaican law.

Jamaica’s shift to individual contracts parallels Uruguay’s proposal to pay Cuban health professionals directly. Uruguay seeks to retain its bilateral cooperation agreement while changing the payment mechanism, whereas Jamaica has replaced its former arrangement with direct employment contracts. Both approaches seek to preserve essential medical services while addressing concerns about Cuba’s government in employing and compensating health professionals.

Recommended Reading, Listening & Viewing:

Leer | OnCuba News: Cuba y las midterms: ¿Tirar los dados?

Read | Food Tank: Op-Ed: Blockade Against Cuba Exposes the Fragility of the Global Food System

Leer | El País (Uruguay): Miles de cubanos tramitan la solicitud de refugiado, pero unas pocas decenas lo consiguen

Listen | NPR: Immigration briefing: How Trump’s crackdowns are impacting Cuban voters

Read | The Atlantic: Waiting on Marco

Listen | NPR: NPR spoke to Cuban men now stuck in limbo in Central African Republic

Go | Virginia Tech Center for the Arts: Juan de Marcos and the Afro-Cuban All Stars

Blacksburg, VA | Wednesday, October 28 @ 7:30 pm

Read | BBC: The wealthy Cuban Americans ready and waiting for Havana to fall

Leer | EL PAÍS: “La verdad es que Cuba ya ha caído”: la estrategia de Estados Unidos para someter a la isla

Read | Bloomberg: Cuba Is a Holdout on Trump’s Western Game Board