Cuba Faces Economic Challenges as Currency Fluctuates

The Union Electrica, or UNE, of Cuba has reported that the restoration of electric service in Eastern Cuba has reached sixty-four point five three percent following the impact of Hurricane Melissa. However, the overall energy deficit in the country remains critical, leading to widespread blackouts across the island, exacerbated by the cyclone.

As of November 9, the UNE forecasts that forty-eight percent of Cuba will experience power outages, a figure consistent with the previous day. The daily report from UNE highlights significant failures in several thermal power plants, specifically units three, five, and six of the Antonio Maceo thermal power plant, alongside issues at the Felton plant.

Additionally, the Antonio Guiteras plant, the most crucial in the country, is currently offline for maintenance, along with other units in Santa Cruz and Cienfuegos. The peak demand for electricity reached two thousand eight hundred seventy megawatts, while only one thousand five hundred sixty megawatts of generation capacity was available, resulting in a deficit of one thousand three hundred ten megawatts.

The situation is particularly dire in the eastern provinces of Las Tunas and Guantanamo, where the cyclone has left three hundred thirty-seven megawatts offline. This ongoing energy crisis, which has persisted since mid-2024, is attributed to outdated thermal power plants, scheduled maintenance, a shortage of fuel and lubricants, and the ineffective management by the government.

The current issues reflect larger economic challenges facing Cuba, particularly the rising value of the dollar and euro in the informal market, impacting the local economy and highlighting broader concerns of currency stability and inflation.

According to reports, the economic landscape in Cuba is increasingly precarious as these factors converge, making it essential to monitor developments closely.