Power outage in Cuba [EPA=Yonhap News]

Cuba, grappling with a worsening power crisis, continues to face outages that are nearing a total blackout. As the energy crisis accelerates, the government appears to be accelerating efforts to open various sectors, including energy, to the private sector.

The Cuban Electric Union (UNE) announced on the 29th (local time) that a large-scale power outage is expected during peak demand hours, with 74% of the country projected to be without electricity simultaneously.

According to local daily Cubadebate and Spanish-language media Infobae, the utility stated that while peak electricity demand is expected to reach 3,200 MW (megawatts) today, actual available power supply is only 850 MW.

Consequently, it is projected that 2,380 MW of power will need to be artificially cut to prevent a total collapse of the national grid. This means that 74% of the required power cannot be supplied.

Empty streets in Cuba [Xinhua=Yonhap News]

Cuba typically derives 40% of its power from 16 thermal power plants, but nine of them are currently out of operation due to aging and maintenance issues. In particular, the 'Antonio Guiteras' plant, one of the key thermal power facilities, has suffered malfunctions approximately 20 times this year alone, leading to complete shutdowns.

Diesel and heavy fuel oil-based power generation, which accounted for another 40% of power production, has also been effectively suspended since January of this year due to the U.S. embargo. The remaining 20% of power is currently covered by gas and renewable energy sources, such as solar power supported by China.

Cuba requires more than 100,000 barrels of crude oil per day, but it is suffering from a severe energy crisis as external supplies remain disrupted. Domestic production is only 40,000 barrels, just 40% of what is needed.

Private experts estimate that $8 billion to $10 billion (approximately 11.5 trillion to 14.5 trillion won) is needed to fully restore Cuba's national power grid (SEN). However, it is impossible for the Cuban government, which is experiencing an extreme economic crisis, to cover these costs.

Streets of Cuba [AFP=Yonhap News]

The Cuban government is promoting liberalization to overcome this persistent energy crisis and expand its fiscal resources.

To address the severe shortages caused by the U.S. energy embargo, the government announced the lifting of regulations in several sectors today, including fuel distribution, power generation, waste collection, and pharmaceutical manufacturing and sales.

As a result, private companies can now operate waste collection and recycling services, addressing the piles of trash accumulating on the streets of Havana.

Furthermore, private companies are now permitted to sell fuel as well as import and manufacture electric vehicles.

Additionally, private firms are now authorized to engage in the manufacture and sale of pharmaceutical products.

However, AFP reported that the government emphasized it will continue to maintain strict control over strategic sectors critical to maintaining its power, such as education, telecommunications, media, and defense.

Previously, the Cuban government announced an emergency economic package last month, centered on opening the market in a manner similar to the Chinese and Vietnamese models. These latest measures are part of that follow-up initiative.

Tourism in Cuba [EPA=Yonhap News]