Decree 110/2024, published in the Official Gazette, establishes that micro, small, and medium-sized enterprises (MSMEs) in Cuba with a monthly consumption exceeding 30 MWh must generate at least 50% of their energy from renewable sources.
This regulation has sparked controversy among economists and businesspeople, highlighting Pedro Monreal's rejection, who believes that the measure hampers private investment and reflects the structural crisis of the energy sector.
Details of Decree 110/2024
The regulations require companies to invest in their own generation systems, such as solar panels or wind farms.
If there is no space available for these installations, they must contract electricity generated at solar parks of the Electric Union (UNE), financing the necessary infrastructure themselves. Although the decree aims to promote energy sustainability, critics point to the additional costs and lack of government support.
Economist Pedro Monreal's opinions
In a series of posts on his Twitter account, Monreal questioned the decree and described it as a reflection of "state incompetence." According to the economist, the requirement for each economic actor to generate their own electricity "puts at risk the little 'modernity' left in the Cuban economy."
Monreal highlighted that this measure is an implicit admission that the State cannot guarantee basic services. "The premise that 'with the national energy situation it is impossible to continue assimilating load' indicates the government's inability to ensure essential conditions," he stated in another tweet.
He also criticized the impact of the regulation on investment: "The idea that 'everyone born as an investment must be born with their renewable source obligatorily' adds an entry barrier to a country with a very low capital accumulation rate."
Inconsistencies in implementation
Monreal also pointed out that the statements made by the Director General of the National Office for the Control of Rational Energy Use (ONURE) seem to go beyond what is stipulated in the decree. According to the economist, "the 3 to 5 year period mentioned by the official to implement renewable sources is not explicitly stated in the regulations."
Energy sector context
The economist highlighted that, by the end of 2023, wind and photovoltaic parks barely accounted for 5% of the installed capacity in public service plants. This figure demonstrates the limited investment in renewable energies by the State, which contrasts with the burden imposed on SMEs. Monreal concluded that the decree reinforces an economic model that prioritizes sectors like tourism while limiting the modernization of others.
An uncertain future for SMEs
Decree 110/2024, although it aims to promote sustainability, faces criticism for its impact on private investment and its unclear implementation. Micro, small, and medium-sized enterprises, already affected by lack of financing and adverse market conditions in Cuba, will have to bear high costs to meet the new requirements, which could hinder their growth and ability to generate employment.
Continue reading in Directory News
Follow our channels of WhatsApp, Telegram y Facebook.
They don't want or don't wish for the Cuban to improve. The only thing being done is imposing decrees and laws that only hinder business development in Cuba.
Those in power know and have shown that the more misery the people endure, the less they think about economic and political change.
Whoever doesn't agree should leave, and those who can't leave the country have to endure it, without electricity, food, transportation, etc.
And they only think about increasing excessive centralization. Everything is decided from an office in Revolution Square.
All we can hope for now is that the Lord has mercy on the Cubans living on the Island and saves us.
I never dreamed or imagined that they had intentions of destroying a country and emptying it of its population, especially its youth.
Cuban people only have three options: emigrate, live in this unbearable misery, or protest and end up in prison.
May God and fate save the Cuban people.
Greetings.
How much has the State invested in recent years in generation, specifically in renewable energies (photovoltaic cells, wind, solar panels)? Now, during these times of collapse and energy crises, we want to impose, question, and demand from the business sector and private economic actors that 50% of electricity consumption is their responsibility, making it a law of strict compliance.
this is already euthanasia for the people of Cuba