Investment in the K Tower: A Missed Opportunity for Power Generation in Cuba?
In late October 2024, retired journalist Manuel David Orrio stirred up controversy on social media by highlighting a comparison that underscores public investment priorities in Cuba. According to Orrio, the budget allocated for constructing the K Tower hotel in Havana, financed entirely with Cuban capital, could have covered a significant portion of the national electricity demand if it had been invested in solar panels. With an estimated cost of $400 million, the project has raised questions about the effectiveness of investments in tourism infrastructure amid an energy crisis that affects daily life in the country.
Investment in the K Tower vs. Renewable Energy: A Revealing Comparison
According to an analysis conducted by Orrio and supported by Dr. Daniel Stolik Novygrod, Professor Emeritus at the University of Havana, the $400 million invested in the K Tower could have been used to acquire around 1.6 million solar panels. These panels, spread over an area of approximately 4 square kilometers, could generate up to 480 MW of daily energy, a significant contribution to alleviating the Island’s energy deficit.
While the $400 million estimate remains unofficial, Orrio and Stolik based their analysis on data from the Ministry of Tourism and other government reports on previous hotel sector investments. Examples include the $200 million allocated to the Meliá Jardines del Rey in 2015, $500 million for the Manzana Kempinski in 2017, and $300 million for the Iberostar Grand Packard in 2018. This investment pattern reflects a steady commitment to tourism, despite low visitor turnout and frequent power outages across the country.
Energy Crisis and the Costly Turkish Barges
The analysis also highlights the costs associated with renting Turkish power barges, floating platforms that generate electricity and which Cuba uses to mitigate blackouts. Although they provide a temporary solution, their rental fees and imported fuel consumption represent a significant expense that could have been reduced with solar energy investments. In a country with high solar radiation, a commitment to renewable energy could have meant long-term stability and savings, as well as a reduced dependency on fossil fuels.
Tourism in Cuba at Risk: Impact of the Energy Crisis on the Country’s Image
During the recent “great blackout” that affected much of Cuba, even hotels were left without electricity, creating dissatisfaction among tourists and impacting the country’s image as a safe and reliable destination. In addition to being criticized for its design, the K Tower has sparked debate among citizens and architects who feel that this infrastructure does not address the population’s most urgent needs.
Had the funds for the K Tower been invested in solar energy, it is likely that the stability of the electrical service would have improved, thus enhancing Cuba’s image among international visitors. A renewable energy system could have prevented tourists and residents from experiencing power outages, a critical factor in the experience of those visiting the Island.
Solar Energy in Cuba: Potential Costs and Benefits
The average cost of a solar panel on the international market ranges from $200 to $300, with an average price of $250 per unit. With a $400 million budget, Cuba could have acquired approximately 1.6 million 300-Watt panels, providing a total generation capacity of 480 MW. Assuming an average of five effective sun hours per day, these panels could produce up to 2.4 million kWh daily, or roughly 876 GWh annually, covering a significant portion of the national demand.
This generation could save the country around $12 million annually, primarily in barge rentals and fuel purchases. Additionally, this initial investment would promote energy self-sufficiency and support a sustainable environmental policy, a goal that has become increasingly necessary amid the global climate crisis.
Is the U.S. Embargo the Real Cause of Cuba’s Energy Crisis?
The investment in the K Tower and other luxury hotels has reopened the debate about the impact of the U.S. embargo on Cuba’s economy and energy sector. While the government has long argued that the embargo is the main obstacle to development, these luxury projects challenge that narrative. Is the energy crisis solely due to the embargo, or is it a result of poor investment decisions? For many Cubans, the construction of hotels that remain largely vacant throughout the year reflects a lack of adequate planning, especially in a country that faces frequent blackouts and deteriorating quality of life.
Investment Priorities in Times of Crisis
Orrio’s comparison underscores the need for Cuba to re-evaluate its investment policies and allocate resources to sectors that provide direct benefits to the population. Renewable energy could offer long-term stability and savings while reducing fuel costs and improving the quality of life for Cubans. Rather than focusing exclusively on hotel projects, perhaps it is time to prioritize energy sustainability as a viable and urgent goal.
