Cuba Petroleo Attributes Power Outages to Fuel Shortages

Officials argue that the problem isn’t failures and breakdowns in the thermoelectric plants, but rather the lack of fuel to operate them

By 14ymedio

HAVANA TIMES – After two months of blackouts and daily deficits that reached over 1,000 megawatts (MW), the State electric company (UNE) and Cuba Petroleo (Cupet) offered an “explanation” on Cuban Television this Thursday. The directors of both state-owned companies attributed the latest energy crisis in the country to a 46% drop in fuel imports in recent months.

A report from the National News on Thursday night, where the officials appeared, defended the thesis that the problem isn’t failures and breakdowns in the thermoelectric plants, but rather the lack of fuel to operate them. “The country’s consumption in one year is around 8 million tons of various fuels. Of these, 3 million are domestically produced, and the rest is imported (…). In the case of diesel, there was a one-third decrease in imports in 2023, and for fuel oil, today we have approximately 30% of the demand required for generation,” explained Nestor Perez, director of Cupet.

Thermoelectric plants run on domestic oil and usually do not have supply problems. In contrast, the production of electricity by mobile generation (floating generator boats and stationary engines) requires imported fuel oil or diesel.

According to López, in 2023 the thermoelectric plants covered about 60% of the country’s energy demand.

The problems, however, do not end there. “Both with engines and mobile generation, we are experiencing deficits due to breaches we have had with some suppliers,” admitted Perez, who described the constant search for “stable supplies” as a “permanent struggle.”

Fuels such as diesel, he added, present another difficulty, as they are not only intended for generating electricity but also “compete” with other branches of the economy to which the State allocates them, such as food production, agriculture, and public transportation, to name a few.  Likewise, “The financial issue – he added – obviously hurts us.”

Also interviewed by the News, Alfredo Lopez, director of the only electric company, stated that this year the situation is much worse than forecasted. “Last year we managed to provide (the population) with an acceptable summer and a good end of the year, but the days that have passed this year have been very tough for the National Electric System.

According to Lopez, in 2023 the thermoelectric plants covered about 60% of the country’s energy demand. So far this year, this figure has increased to almost 80%, but not because they have better generating capacity, but because they have had to cover an extra part of the demand due to the shortage of fuel to operate the Turkish generator boats and stationary generators. “We can say that blackouts have decreased this year, but there are still many,” he emphasized, although this has not been the population’s perception.

The distribution of petroleum derivatives, both domestic and imported, from the ports and the Cienfuegos refinery – the other three, including the Ñico Lopez in Havana, are shut down – to the plants has also presented problems due to the lack of fuel to transport them, Lopez asserts. “The Antonio Guiteras thermoelectric plant in Matanzas receives fuel through a pipeline, Cuban crude. The same goes for the Ernesto Guevara in Mayabeque, so the logistics are simpler. But for engines and distributed generation, we must first transport the fuel by train and then by trucks. In the case of generator boats, these are supplied by a ship. This is also a problem (due to the fuel shortage), and thermal generation has met projections, but it’s not enough,” he explained.

Regarding the condition of the plants, the news is also not favorable. “Last year we were doing minor maintenance, but the plants require major maintenance. This year we are at an intermediate point (…). This is minimal maintenance of the thermoelectric plants, so we cannot talk about guarantees (that this maintenance will keep the plants operating), but it does improve the situation of the plants,” said Lopez.

The officials also assured that the crude oil extracted in Cuba is not being exported. “There is no way to have exports. It wouldn’t occur to us, and no one in Cuba would allow exporting usable fuels given the situation we have. On the contrary, what we are doing is importing fuels to ensure the different consumption needs of the economy,” Perez insisted. “We want to gradually meet the limited consumptions to avoid reaching zero in any area.”

Perez also mentioned that in 2023 Cupet had “an increased gas production by 13% compared to 2022. And we intend to have another increase in 2024 from drilling a gas well that we must carry out by the end of the first semester.”

Lopez promised something similar, announcing the construction of four small photovoltaic parks. “That is at least 12 MW that will be available by the end of March. In addition, we are planning a rapid growth of photovoltaic energy sources, and this is a previous experience for the construction of another seven parks that we want to build before the end of the year.”

At the moment, the solutions offered are long-term, but immediately, the thermoelectric plants and Energas are the ones “that prevent blackouts from occurring with longer durations,” the News added in an attempt to praise the regime’s management.

However, their optimism is not compatible with UNE’s report for February 23rd: 884 MW deficit during peak hours, three thermoelectric plants out of the system, and blackouts across the island.

Read more from Cuba here on Havana Times.