The Cuban government has accepted a $100m emergency aid package from the United States, marking a rare moment of cooperation as the island nation grapples with a deepening energy crisis. The announcement came live from Havana, where rolling blackouts have left millions without power for up to 12 hours a day. This is not a political thaw, but a desperate response to a collapsing grid. The aid will fund fuel imports and repairs to ageing power plants, some of which date back to the Soviet era.
For context, Cuba's energy infrastructure has been in decline for decades, exacerbated by US sanctions and the Trump administration's tightening of the embargo. The recent crisis, however, has reached a tipping point. The country's oil imports from Venezuela have dropped by over 50% since 2019, and domestic production has stalled. The result is a generation deficit that threatens the functioning of hospitals, water pumps, and food refrigeration. The heat, of course, makes everything worse. Average temperatures in Havana have risen by 1.2°C since the 1960s, increasing demand for air conditioning and further straining the grid.
This is where the physics becomes unavoidable. Every 1°C of warming increases global electricity demand by roughly 2-4% for cooling. For tropical Cuba, the figure is on the higher end. The recent heatwave, with temperatures exceeding 35°C, pushed demand beyond supply. The blackouts are not a political crisis, they are a thermodynamic one.
Meanwhile, UK energy firms are circling. Several British companies, including BP and SSE, have announced plans to expand into the Caribbean. The logic is straightforward: the region has abundant solar and wind resources, and many islands are desperate for reliable power. For UK firms, this is an opportunity to export expertise in offshore wind and battery storage while diversifying away from European markets. The Caribbean also offers a chance to bypass the regulatory hurdles that have slowed renewable projects in the UK.
But there is a risk. The Caribbean is on the front line of climate change. Hurricanes are intensifying, and sea-level rise is eroding coastlines. Any infrastructure built today must withstand conditions that are rapidly worsening. The cost of insurance alone could eat into profit margins. And for Cuba, the US aid is a stopgap. The country needs a full-scale energy transition, not a bailout.
The UK government has signalled support for these ventures, viewing them as a way to drive clean energy exports. But the scale of the challenge should not be underestimated. Cuba's grid loses over 30% of its electricity to theft and inefficiency. Rebuilding it will require billions, not millions.
In the long run, the only sustainable solution is a shift to renewable energy coupled with storage. The Caribbean sun is a constant and reliable resource. But the transition must happen faster than the politics allow. The planet is warming. The ice sheets are melting. And the blackouts in Havana are a warning to the world: energy is not a luxury, it is the foundation of survival.
For now, the $100m will keep the lights on for a few more months. But the clock is ticking.
