Ref# 2798
Generation and Delivery of Renewable Energy based Modern Energy Service: the Case of Isla de la Juventud
GEF, UNEP, UNIDO, CUBAENERGIA (Ministry of Science, Technology and Environment, CITMA), GEPROP, Ministerio de Industria Básica (MINBAS), Ministerio del Comercio Exterior y la Inversión Extranjera (MINCEX), Ministerio de Economía y Planificación (MEP), Ministry of Agriculture (MINAGRI), ADEME, private investors
Progress reports/updates
Deliverable Date
Building local/national capacity to utilize the commercial potential of RETs 2008
Setting up of new and innovative financial mechanisms x private investments in RETs 2009
Establishment of a policy and regulatory framework x enabling environment x RETs. 2012
Implementation of 4 Business Models to demonstrate commercial feasibility of RETs x power generation and heating process 2014
Type Details
Financing (in USD) GEF
In-kind contribution Government of Cuba
Financing (in USD) UNEP
Financing (in USD) UNIDO
Objective & Description
The overall objective of the project is to reduce greenhouse gas emissions by supporting renewable energy technologies based power generation through business models in Cuba and other small island nations that are very sensitive to global warming, as well as adding to the energy security of these nations through reduction in the import of high cost fossil fuels. The project in Isla de la Juventud demonstrates the technical and financial viability of renewable energy based investment business models, and aims at removing the barriers to the development and replication of the renewable energy technologies. In particular, it demonstrates the viability of new institutional and financial practices that would enable the private enterprises/companies to become power producers and energy service providers, and link modern energy services with the productive use activities to enhance the employment opportunities in Cuba.
Governance & Coordination Mechanisms
A Project Steering Committee (PSC) has been set up to oversee the project implementation. The PSC comprises of the key Government agencies (including Ministry of Science, Technology and Environment, Ministry of Foreign Investment and Economic Collaboration, Ministry of Finance and Ministry of Economy), local administration, financial community, public utility, civil society and the private sector. The PSC advises on inter-ministerial coordination and cooperation, besides serving as a platform for sharing information on the project's progress. The Local Advisory Committee (LAC) comprising of key stakeholders including local administration, local electricity utility, local forestry company, NGOs and local industrial organizations is responsible for the coordination and monitoring the project activities at the local level. The LAC facilitates public participation in the implementation phase, and ensures local ownership of the project through information dissemination on regular basis. The LAC also ensures that all key decisions on location of various facilities under the proposed project are taken after taking into account inputs provided by the public representatives, NGOs and local industrial associations. The LAC assists in mainstreaming gender issues into the project activities by involving women groups in decision-making processes at every stage.
Implementation Methodologies
The project would adopt a holistic approach for demonstrating the technical, economic and financial viability of sustainable renewable energy production through business models on the Isla de la Juventud, and help in creating an enabling environment in terms of institutional, financial and policy mechanisms for their replication throughout the country and the region. Both, the national counterpart agency CUBAENERGIA under the Ministry of Science, Technology and Environment (CITMA) - and Compañía Fiduciaria a national level trust fund financial and banking company - are designated agencies for the introduction of business models to support sustainable development in Cuba.

For the GEF, UNEP is the Implementing Agency, which oversees the successful achievement of the project objectives, while UNIDO executes the project activities. The national counterpart agency is the Centre for Management of Priority Programmes and Projects (GEPROP) under the Ministry of Science, Technology and Environment, Government of Cuba, and Compañía Fiduciaria a national level trust fund financial and banking company. UNIDO has set up a Project Management Unit (PMU) expanding the existing national field office to coordinate and execute the project activities.
Arrangements for Capacity Building and Technology Transfer
Various activities for capacity-building are being undertaken including the development and implementation of effective information dissemination programmes, the dissemination of lessons learned and results as well as the creation of a regional network. In addition, key stakeholders have already been trained on technology and benchmarking of RETs as well on management of RETs based power plant and process heat generation systems. Experts and planners have also been trained to manage technical and financial services related to the project. For the four business models to demonstrate commercial feasibility of RETs, various types of technology are transferred.

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