On September 8, 2025, the Cuban province of Holguin marked a milestone in its renewable energy journey with the inauguration of two major photovoltaic parks—each boasting a generating capacity of 21.8 megawatts. These new solar installations, one located in Pilón within the municipality of Antilla and the other in Providencia near Frank País International Airport, signal a growing commitment to shifting Cuba’s energy matrix toward greener, more sustainable sources. The launch comes at a critical time for the island nation, which continues to grapple with outdated infrastructure, frequent blackouts, and the persistent challenge of meeting its ambitious renewable energy targets.
According to reporting from The Borgen Project, renewable energy sources currently supply less than 5% of Cuba’s total electricity generation. This figure stands in stark contrast to the government’s target: 24% renewable generation by 2030. The gap underscores both the scale of the challenge and the urgency driving recent developments like the Holguin solar parks. As Raúl Alexander Castillo Rodríguez, the main investor and director of Holguin’s Renewable Energy Sources Unit (UEB), explained to local news agency CNA, the Pilón site was constructed in two stages, overcoming significant setbacks caused by heavy rains in late 2024 before civil construction wrapped up in March 2025.
Castillo Rodríguez emphasized that the UEB is spearheading several similar projects across the province, including solar parks in Melilla and Playa Blanca within Rafael Freyre municipality. Each of these parks adds 4.4 MW to the grid and is already contributing to Holguin’s annual power plan. The momentum doesn’t stop there: Holguin’s ambitious program aims to open five photovoltaic farms with a combined capacity of 109 MW before the close of 2025. The fifth site, in the municipality of Cueto, began construction just weeks before the September inaugurations, with synchronization set for December. By year’s end, Holguin expects to operate five solar arrays with similar characteristics, according to César Sarmiento Ávila, investment director of the Holguin Electric Company.
These local advances dovetail with a national strategy launched in 2024 to boost electricity generation from renewable sources. The strategy seeks to gradually replace more expensive and environmentally damaging fossil fuels with solar, wind, biomass, and small hydro alternatives. Cuba is particularly well-positioned to capitalize on solar energy, receiving an average of 5.4 kilowatt-hours per square meter per day—an enviable resource in the Caribbean context. Yet, despite this potential, the nation’s progress has been hampered by a constellation of obstacles.
As The Borgen Project notes, Cuba’s energy infrastructure remains outdated and inefficient, leading to regular blackouts, especially in rural areas where energy poverty is a persistent barrier to economic activity and improved living standards. The push for renewables is not just about technology—it’s about economic independence, climate resilience, and sustainable development. But for Cuba, attracting the investment, skills, and partnerships needed to unlock this potential has been anything but straightforward.
Foreign investors eyeing Cuba’s renewable sector face a thicket of challenges: bureaucratic red tape, legal uncertainty, and difficulties securing financing. U.S. sanctions add yet another layer of complexity, often deterring even the most enthusiastic partners. Nevertheless, creative solutions are emerging. Public-private partnerships (PPPs) have begun to take root, allowing foreign firms to contribute equity and technology alongside Cuban state-owned enterprises. New financing mechanisms, such as green bonds and blended finance models, are being explored to help de-risk investments and make the market more attractive.
Cross-border collaborations have also played a pivotal role. Spanish and Chinese firms, for instance, have engaged in partnerships to build solar parks and wind farms across the island. A separate initiative funded by a donation from the People’s Republic of China aims to add 120 MW of solar capacity nationwide, with Holguin accounting for 40 MW distributed across six five-solar farms and one 10-solar farm. These international projects have revived the feasibility of industrial-scale renewables in Cuba, offering a path forward even in the face of external constraints.
For Cuba to achieve a successful energy transition, experts and engineers interviewed by The Borgen Project highlight three critical factors: regulatory reform, improved financing mechanisms, and capacity building. Regulatory reform is needed to streamline the approval process for renewable projects, cutting through the layers of licensing and bureaucracy that currently slow progress. Financing remains a sticking point, with most projects relying on one-off grants, pilot programs, or developmental loans—arrangements that rarely provide the stable, long-term funding necessary for ongoing operations. The government must find ways to de-risk investments and offer more predictable returns to entice foreign and domestic partners alike.
Capacity building is equally crucial. Developing a skilled local workforce capable of installing, maintaining, and managing renewable energy infrastructure is essential for long-term success. Cuba can look to regional neighbors for inspiration: Costa Rica’s transition to 99% renewable electricity and Uruguay’s effective use of public-private partnerships offer valuable lessons in policy design and implementation.
The socioeconomic benefits of a greener grid are manifold. On a microeconomic level, increased renewable adoption could lower household energy costs and reduce the health risks associated with air pollution. Thousands of new jobs could be created in installation, maintenance, and manufacturing, providing a much-needed boost to local economies. In rural regions, decentralized solar and biomass systems could ensure reliable electricity access, unlocking opportunities for agricultural development, small businesses, and improved education.
Urban centers like Havana and Santiago de Cuba stand to benefit as well. Renewable-powered public transit—think electric buses and clean energy systems—could revolutionize urban mobility, while energy-efficient infrastructure tailored to local environmental conditions would transform both the economy and the environment of these cities. Yet, as The Borgen Project cautions, sustained progress will depend on long-term commitments and funding from wealthier states and multilateral institutions. Without stable policy frameworks and periodic financial support, Cuba risks falling short of its 2030 renewable energy goals.
The recent flurry of solar park inaugurations in Holguin is a testament to what’s possible when ambition, innovation, and international cooperation align. While the road ahead is fraught with obstacles, the opportunities for economic sovereignty, job creation, and environmental stewardship are too significant to ignore. With the right mix of policy reforms, financing instruments, and global partnerships, Cuba could well become a model of clean energy development in the Caribbean—one solar panel at a time.
