Navigating Cuba’s Energy Choices: Design Variables and Insights from Duke University’s Energy for Emerging Markets Case Competition

Cuba’s energy decision makers are facing challenging choices as they consider the country’s energy needs in coming decades. A shifting tide in domestic policy and international relations is ushering in new economic activity that will increase demand for electricity on the long run. Meanwhile, recent events with Cuba’s traditional energy partners have highlighted concerns around reliance on foreign fuel sources for electricity production. These factors create a compelling mandate for the government to chart a transition to cleaner sources of energy and greater resiliency of its energy system. Inherently, energy systems are technically complex, capital-intensive, highly regulated, and involve a wide variety of disciplines and stakeholders. While there are a multitude of questions to address, such topics can be distilled into several key design variables. These design variables broadly fall into three categories: technology, policy, and finance. The designers of Cuba’s energy system must decide which technologies to utilize, what policies are needed to enable new approaches, and how capital will be attracted to enable the required investment. By working with international academic partners, Cuba can benefit from new insights and innovative approaches to rapidly evolving its energy system to meet its future needs.