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Cuba pulls the plug: Why the floating power plants are disappearing

#1 March 15, 2025, 7:32 am.

Quote from admin on March 15, 2025, 7:32 am
The floating power plants of the Turkish Karadeniz Holding are disappearing from Cuba – as discreetly as they once arrived. The lease agreements for the electric ships, once touted as a quick solution to the energy crisis, have always 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 ships had a total capacity of 300 megawatts (MW) and, as recently as 2023, accounted for around a quarter of Cuba's electricity generation.

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 for increasing 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 generators already existed on the island that 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." Although some of the existing generators were in need of repair, the refurbishment would probably have cost less than renting the power plant ships.

Another problem became apparent during the nationwide power outages of 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 therefore more resilient to crises.

Unclear contracts and high costs:
While the opaque contract terms of Karadeniz Holding have sparked debate in other countries like Ecuador and South Africa, the situation in Cuba remains even more unclear. To this day, there is no official information on how much the Cuban government paid for the power ships or what the payment terms were.

A rough estimate based on Ecuadorian contracts suggests that Cuba paid at least US$313 million for the 4,494 gigawatt-hours of electricity generated by the ships in 2023 – not including fuel costs. Even at discounted rates, fuel costs totaled over US$155 million. By comparison, the Canadian company Sherritt generated energy in Cuba for just US$0.574 per kilowatt-hour, while Karadeniz charged significantly higher prices.

Another crucial 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 national currency.

The future of energy supply: A shift to renewable energies?
With the withdrawal of Turkish power plants, Cuba is investing heavily in renewable energies. Among other things, 55 new solar parks are planned with Chinese assistance, but details about these projects are scarce. Given the ongoing energy crisis, it remains to be seen whether this shift will lead to a more stable electricity 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 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 about 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 eroding the trust of the population and potential investors.

The floating power plants of the Turkish Karadeniz Holding are disappearing from Cuba – as discreetly as they once arrived. The lease agreements for the electric ships, once touted as a quick solution to the energy crisis, have always 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 ships had a total capacity of 300 megawatts (MW) and, as recently as 2023, accounted for around a quarter of Cuba's electricity generation.

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 for increasing 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 generators already existed on the island that 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." Although some of the existing generators were in need of repair, the refurbishment would probably have cost less than renting the power plant ships.

Another problem became apparent during the nationwide power outages of 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 therefore more resilient to crises.

Unclear contracts and high costs:
While the opaque contract terms of Karadeniz Holding have sparked debate in other countries like Ecuador and South Africa, the situation in Cuba remains even more unclear. To this day, there is no official information on how much the Cuban government paid for the power ships or what the payment terms were.

A rough estimate based on Ecuadorian contracts suggests that Cuba paid at least US$313 million for the 4,494 gigawatt-hours of electricity generated by the ships in 2023 – not including fuel costs. Even at discounted rates, fuel costs totaled over US$155 million. By comparison, the Canadian company Sherritt generated energy in Cuba for just US$0.574 per kilowatt-hour, while Karadeniz charged significantly higher prices.

Another crucial 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 national currency.

The future of energy supply: A shift to renewable energies?
With the withdrawal of Turkish power plants, Cuba is investing heavily in renewable energies. Among other things, 55 new solar parks are planned with Chinese assistance, but details about these projects are scarce. Given the ongoing energy crisis, it remains to be seen whether this shift will lead to a more stable electricity 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 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 about 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 eroding the trust of the population and potential investors.

Cuba pulls the plug: Why the floating power plants are disappearing

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