While there are important current and future opportunities, Cuba is not a suitable market for first time exporters or companies seeking quick sales.
The state run electricity utility (UNE) is the sole buyer of electricity from foreign investors and sells power at heavily subsidized rates.
Foreign companies must register as authorized suppliers with a Cuban state run foreign trade company before exporting to Cuba. This process requires time and the submission of legal and accounting documentation.
From a risk management perspective, Cuba’s renewable energy market can be divided into four segments:
1. State-run importers depending on the government’s budget
Sales depend on government funding, which has been significantly constrained over the last five years due to reduced revenues from exports of goods and services.
2. State-run companies in sectors with relative autonomy
Tourism is among the few sectors allowed limited autonomy to use part of their hard currency revenues to pay for essential imports. The government is accelerating moves toward partial dollarization, which may improve the credit worthiness of state companies in sectors such as wholesale and retail, dominated by Panamericana S.A. and TRD Caribe.
3. A limited number of foreign companies allowed to import and wholesale
Some foreign companies operate business models where payments are made abroad (e.g., online platforms). Others have been authorized to import and wholesale locally. A few have established customs deposit warehouses, enabling inventory storage on the island and payment collection as goods are sold. These models can offer lower risk when appropriate banking instruments are used.
4. Private sector importers and wholesalers
Since 2021, private businesses have operated as importers and wholesalers for a wide range of goods. The private sector is now the most dynamic part of the Cuban economy. By the end of 2024, 9,236 micro, small and medium-sized enterprises (MIPYMEs) and 5,132 cooperatives were operating, compared with 2,692 state-run companies. In 2025, the private sector imported over USD 2 billion, representing 25% of total imports.
For example, a private company in Camagüey province has installed over 200 photovoltaic systems with 1.6 MW of storage capacity. In Villa Clara province, private companies have installed 4MW in solar parks, mostly using Canadian solar equipment purchased through intermediaries. Around 300 families are now energy self-sufficient through renewables, 80% of which financed by relatives abroad. Private sector solar capacity in Villa Clara is projected to reach 8 MW in 2026.
The rise of private businesses has opened new opportunities but also new risks. Private companies have more autonomy and flexibility in choosing suppliers but tend to make smaller, more fragmented purchases, requiring exporters to engage with many more buyers.
Payment processes also differ. Private companies typically pay from overseas accounts, often partially or fully in advance, but payments may come through intermediaries or relatives abroad, raising transparency and compliance challenges. By contrast, state companies normally use letters of credit—which are more secure—but request long term financing (1 to 2 years).
The private sector cannot carry out imports directly. Their imports need to go through state-run specialized foreign trade companies that currently operate mostly as customs agents. While there are over 2,500 state-run companies in Cuba, only some 240 of them are allowed to carry out foreign trade transactions. Only some 70 of these 240 state-run foreign trade companies can intermediate in imports purchased by the private sector.
