Primary energy supply

Growing in line with the country’s social and economic development, Cuba’s total primary energy supply (TPES) increased 61% from 1970 to 1989 at an annual rate of about 2.5%. During the 1990s, with the country in a critical economic situation, TPES underwent important changes, falling 38% between 1990 and 1995. By 2000, TPES had increased 15% from the lowest level experienced in 1995. However, after 2001, TPES decreased and in 2003 was still 44% lower than the peak value observed in 1985 (Table 2.1 and Fig. 2.1).

The rapid decrease of the TPES during the economic collapse period resulted mainly from a drastic drop in energy imports due to the lack of hard currency³ necessary to buy fuels on the world market at non-preferential prices.

Oil imports decreased dramatically even after 1995 and by 2003 were 67%

lower than the 1985 values. Coal imports dropped by 50% between 1990 and 1995. Decreases in domestic fuels were also observed in the same period for sugarcane biomass (55%), gas (49%) and hydropower (18%). The decrease in biomass resulted from the closure of sugarcane production facilities and a reduction in harvesting areas during the crisis, which limited the availability of

3 Hard currency refers to currency that is commonly accepted for major commod-ities trading (e.g. US dollars).

0 100 200 300 400 500 600 700 800 900

1970 1975 1980 1985 1990 1995 2000 2003

PJ

Domestic Imports

FIG. 2.1. TPES. Source: Authors’ elaboration from Refs [2.1–2.9].

TABLE 2.1. TPES (TJ) (Authors’ elaboration from Refs [2.1–2.9]) Domestic197019751980198519901995200020022003 Gas596396582551 24563921 21721 60924 318 Oila7 12710 14212 25738 86730 05565 890120 746162 525164 850 Hydropower408281437244409335401479575 Sugarcane biomass 246 661160 959182 621195 797238 350106 231115 10093 27577 599 Fuelwood11 93316 17115 29113 78014 54515 05912 68111 66010 824 Total domestic266 189188 193211 264248 943284 604188 154270 146289 549278 166 Imports Coalb2 8342 7573 1594 2045 1252 582727878938 Oilc 271 020351 866470 817604 700453 859270 737260 578194 836197 135 Total imports273 854354 623473 976608 903458 984273 320261 305195 713198 073 Total: Domestic + imports Coal2 8342 7573 1594 2045 1252 582727878938 Gas59639658255124563921 21721 60924 318 Oil278 147362 009483 074643 567483 915336 628381 32435 361361 985 Hydropower408281437244409335401479575 Sugarcane biomass 246 661160 959182 621195 797238 350106 231115 10093 27577 599 Fuelwood11 93316 17115 29113 78014 54515 05912 68111 66010 824 Total dom. + imp.540 042542 816685 240857 846743 588461 474531 450485 262476 238

Share (%) Coal0.50.50.50.50.70.60.10.20.2 Gas0.00.10.10.00.20.14.04.55.1 Oil51.566.770.575.065.172.971.873.676.0 Hydropower0.10.10.10.00.10.10.10.10.1 Sugarcane biomass 45.729.726.722.832.123.021.719.216.3 Fuelwood2.23.02.21.62.03.32.42.42.3 aRefers to crude oil production. bImported coal is for non-energy use (metallurgical industry) and includes small quantities of coke from coal. cIncludes crude oil and petroleum products.

TABLE 2.1. TPES (TJ) (cont.) (Authors’ elaboration from Refs [2.1–2.9])

the corresponding sugarcane biomass (bagasse). The decrease in gas production resulted from the reduction in demand due partially to the closure of industries during this period. The hydropower reduction was a consequence of limitations imposed by the ‘annual regulation regime of work’ of the water reservoir for the main hydropower plant, which also serves as water supply for the population and agricultural activities of the region.

Up to 1998, the TPES in Cuba had been dominated essentially by two fuels: oil and biomass. Biomass in Cuba includes mainly bagasse from sugarcane, sugarcane crop residues and fuelwood. Only since 1999 has gas started to play a considerable role. Figure 2.2 shows the fuel shares in the TPES. The share of oil, the dominant fuel, grew significantly from 52% in 1970 to 75% in 1985. This increase was compensated by an equivalent reduction in the biomass share, with the exception of the period around 1990, when there was a significant increase in sugarcane production and therefore a rise in the biomass share. Also, the lack of affordable commercial fuels caused an increase in the use of fuelwood during the crisis period, leading to the non-sustainable use of forest resources. Subsequent improvements in the fuel supply, increased generation of electricity and measures adopted to restrict or prevent the use of forest resources led to a decrease in fuelwood use to the current sustainable level (reforestation compensates for deforestation caused by wood use for

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1970 1975 1980 1985 1990 1995 2000 2003

Coal Oil Gas Renewables

FIG. 2.2. Fuel shares in the TPES. Source: Authors’ elaboration from Refs [2.1–2.9].

energy purposes).⁴ By 2003, the oil share had returned to around 76%, biomass to 16% and gas had reached about 5% of the TPES.

Even with the sustained growth achieved in recent years, the TPES has not returned to the levels reached before the crisis. This situation reflects positive results being achieved by the implementation of effective measures for the reduction of energy intensities, the introduction of more efficient equipment and the management of energy and electricity demand that allowed fuel conservation.

These activities are part of the DPNES [2.10] approved by Parliament in 1993. The main objectives of this programme are to:

— Increase the use of domestic crude oil and associated gas in electricity generation as a substitute for imported fuel oil;

— Achieve higher efficiency in the use of bagasse and other crop residues of the sugar industry, allowing this industry to provide itself with its energy requirements and to increase the electricity delivered to the National Electric System (NES);

— Extend the use of hydropower, waste based (industrial, agricultural and urban) energy sources, solar energy, wind energy and biogas.

This programme was divided into two phases, demarcated by results and not by periods of time. The first phase focuses mainly on (a) increase in the production and use of domestic crude oil and associated gas, (b) increases in energy efficiency and (c) the contribution of sugarcane biomass to the country’s energy mix. These actions combined were expected to add an additional 29 308 TJ (or 700 000 t of oil equivalent (toe)) of domestic fuel annually. The second phase was planned for when sufficient financial resources would be available for energy infrastructure development. Several components of the second phase are currently under implementation. It is expected that the total contribution of these actions will result in the following energy supply structure: sugar industry 45%, domestic crude oil and associated gas 40% and other energy sources 15%.

As a result of this programme, it was possible to increase domestic production of crude oil nearly sixfold and that of associated gas more than 19-fold between 1990 and 2003. These production increases were used to fuel almost all electricity generation in the country as well as the energy require-ments of the cement and nickel industries; they also enabled the reduction in the use of naphtha in the city gas supply [2.9]. Stepped up domestic oil and gas

4 See Section 7 for details concerning household energy use.

availability allowed the increase in electricity generation observed since 1994.

Important investments were made in infrastructure to transport crude oil and associated gas.

The sugarcane industry, however, has not yet recovered. There has been a steady reduction in the use of sugarcane biomass owing to the limited availa-bility of sugarcane, mainly as a result of the low sugar prices on the world market, and a lack of financial resources and fertilizers, which resulted in a significant drop in land productivity.

A restructuring process in the sugar sector, postponed because of its social implications, was finally implemented in 2002. Nearly half (45.5%) of the 156 sugar mills in the country were closed, and half the area devoted to sugarcane cultivation was used for other crops to substitute for food imports and for timber-yielding trees. After professional retraining and/or reorien-tation, 25% of the sector’s labour force was assigned to other productive activities. The restructuring process has not yet been completed.