Cuban dictatorship will require all businesses to produce 50% of the energy they consume

From our Bureau of Disasters in the Making with some assistance from our Bureau of Nobel-Prize-Worthy Socialist Logic

Hey, how about fixing our collapsing economy by placing greater burdens on all commerce? Yeah. Sounds great to us! Let’s require all businesses to produce half of their own electricity through renewable energy sources! Yeah. Let them get windmills and solar panels. That won’t hurt their profits at all. No.

Passing on the burden of generating electricity to businesses frees Castro, Inc. from having to provide power to them, or to the Cuban people. Now it will be able to concentrate strictly on its apartheid hotels! And, how about this extra bonus: slapping heavy fines on businesses that fail to meet this requirement will bring more money into Castro, Inc.’s pockets. And it won’t hurt businesses or the economy at all. No, not at all. Nominate these geniuses for the Nobel Prize in economics!

From CubaHeadlines

This Tuesday, a decree published in the Official Gazette mandates that private, foreign, and state-owned companies in Cuba implement stringent energy efficiency measures. The new regulation, aimed at “establishing controls for the efficient use of energy carriers and renewable energy sources,” outlines specific strategies for maintaining stability in the electrical system and addressing contingency scenarios.

A pivotal element of Decree 110/2024 is the requirement for “large consumers” to generate at least 50% of their peak hour energy consumption from renewable sources by 2028. The term “large consumers” encompasses those entities consuming an average of 30 megawatt-hours per month or 50,000 liters of fuel.

The decree insists these users must adopt “a management system for the efficient control and use of energy carriers and renewable sources, aligned with their social purpose, functions, and approved mission.” According to the decree, these measures should be part of a “program for the development, maintenance, and sustainability of renewable sources and efficient energy use, with a five-year scope.”

New economic entities planning to operate in Cuba must integrate these programs into their initial planning. Existing companies will have a window of three to five years to comply. If structural limitations prevent the installation of photovoltaic panels, companies must enter into agreements with solar parks managed by the Electric Union (UNE).

For investments requiring substantial energy amounts, the government will adopt a more stringent approach regarding tariffs. These new rates will be calculated based on the “actual cost of diesel generation at the official exchange rate approved by the Central Bank of Cuba.” However, the Mariel Special Development Zone (ZEDM) will not be affected and will continue under current tariff regulations.

The decree also outlines a series of penalties for companies failing to adhere to the new rules. Infractions range from maintaining poorly conditioned facilities to not meeting peak hour consumption plans. Fines can reach up to 15,000 pesos, and electricity supply may be interrupted for up to 72 hours.

In instances of “electrical contingency regime”—defined as planned disruptions exceeding 72 hours—penalties rise to 20,000 pesos.