Quote from admin on March 15, 2025, 7:32 am

The floating power plants of the Turkish company Karadeniz Holding are disappearing from Cuba – just as discreetly as they arrived. The lease agreements for the power vessels, once hailed as a quick solution to the energy crisis, have remained opaque. Experts criticize the high costs and limited efficiency of the plants. 

 

 

For weeks, the floating power plants have been disappearing from Cuban ports as mysteriously as they once arrived. At the end of February, only two of the original eight power ships operated by the Turkish Karadeniz Holding remained in Havana. These had a total capacity of 300 megawatts (MW) and would have provided approximately a quarter of Cuba's electricity generation until 2023.

A costly energy experiment.
When the Cuban government announced the lease of the power plants in 2022, Energy Minister Vicente de la O touted them as the fastest and most effective solution to increase electricity generation. However, details of the contracts with Karadeniz Holding were never disclosed. This led to speculation among experts: Why was Cuba leasing expensive floating power plants when similar generator systems already existed on the island and simply needed repairs?

An engineer from Santa Clara drew a vivid comparison: "It's like owning a car but leaving it in the garage to rent a similar one." While some of the existing generators were in need of repair, the repairs would likely have cost less than renting the power ships.

Another problem became apparent during the nationwide power outages in 2022 and 2024: Turkish power plants required an external energy source to start up. Cuba's existing plants, on the other hand, could start up independently and were thus more resilient to crises.

Unclear Contracts and High Costs
While Karadeniz Holding's unclear contractual terms have sparked controversy in other countries such as Ecuador and South Africa, the situation in Cuba remains even more opaque. To date, there is no official information on how much the Cuban government paid for the power vessels or what the payment terms were.

A rough estimate based on the Ecuadorian contracts suggests that Cuba paid at least $313 million in 2023 for the 4,494 gigawatt-hours of electricity generated by the ships – not including fuel costs. Even with discounted rates, fuel costs totaled over $155 million. By comparison, in Cuba, the Canadian company Sherritt generated energy for just 5.74 US cents per kilowatt-hour, while Karadeniz charged significantly higher prices.

Another decisive factor was the personnel structure: the foreign specialists at the Turkish power plants received their salaries in foreign currency, which further increased operating costs. In contrast, Cuban workers were paid in the national currency.

Future of energy supply: A shift to renewable energies?
With the withdrawal of Turkish power plants, Cuba is investing more heavily in renewable energy. Among other things, 55 new solar parks are to be built with Chinese assistance, but details on these projects are scarce. Given the ongoing energy crisis, it remains unclear whether this shift will lead to a more stable power supply.

Experts advocate for expanding gas-fired power generation. The Cuban-Canadian company Energas, for example, could increase its capacity through targeted investments. Gas-fired power plants not only have lower CO₂ emissions than oil or diesel generators, but also lower operating costs. Nevertheless, the Cuban government's lack of transparency remains an obstacle to an objective analysis of the best energy options.

An expensive chapter ends – but what comes next?
The withdrawal of the Turkish power plants marks the end of a costly chapter in Cuba's energy policy. Whether the switch to renewable energies or gas-fired power generation will bring the hoped-for turnaround remains uncertain. One thing, however, is certain: the Cuban government must ensure greater transparency in its energy policy in the future to avoid further squandering the trust of the population and potential investors.