Mariel

1. Republic of Cuba Power Sector Infrastructure Assessment Santa Cruz Guiteras Mariel Nuevitas Céspedes Felton Rente Dr. Manuel Cereijo, P.E. University of Miami August, 2008

2. STUDY CONTRIBUTION We believe this study will be one of the greatest contributions, prior to the transition, to assist in the economic recuperation of Cuba.

3. Cuba: Electrical Energy (at 1959) • Compañía Cubana de Electricidad (CCE). CCE was a subsidiary of the American and Foreign Power Company, previously part of the Electric Bond and Share Co.-EBASCO. CCE’s service territory included the Eastern part of Pinar del Río province, La Habana, Matanzas, Las Villas, Camaguey, and the Southern part of the Oriente province. • Hernandez y Hermanos. Its service territory included the western part of Pinar del Rio province and the cities of Trinidad, Casilda and several towns in Las Villas province. • Tabares. Its service territory included the northern and central part of the Pinar del Rio province. • Islas de Pinos Utility. Covering Isla de Pinos. • Many other spotted areas were served by the large sugar mill industry or the larger industrial complexes in the Island.

4. Structure of Report • The study has been divided into three parts or periods of time, that defines clearly the stages the electrical system in Cuba has gone through: • 1959-1989 • 1990-1997 • 1998-2008 • The emphasis on the report is on the last period, since it is the period of interest for the purpose of the study.

6. MAIN POWER PLANTS DATA

7. MAIN POWER PLANTS OUTPUT/CONSUMPTION

8. POWER PLANTS FUTURE INVESTMENTS

9. TOTAL INVESTMENT FOR ADDITIONAL POWER * By 2012 Cuba will need at least 500 MW of additional installed power

10. GRUPO ELECTROGENO OUTPUT/CONSUMPTION

11. ENERGAS OUTPUT/CONSUMPTION * NOTE: 5.50 MMBtu per barrel of No.2 Fuel oil 6.38 MMtu per barrel of No.6 Fuel oil

12. OIL REFINERIES, CUBA 2008

13. * 5.7 barrels=1 ton

15. PROJECTED FUEL COST BASED ON 2008 MARKET CONDITIONS* *Note that these projections are subject to change at any time, and in fact can change daily.

17. Union Electrica, Salary/Month

32. FUTURE INVESTMENT TRANSMISSION LINES* * Refer to section on Transmission lines for required assumptions

33. TRANSMISSION LINES: EMERGENCY INVESTMENT

34. SUBSTATIONS

35. COST/INVESTMENT SUBSTATION TRANSFORMERS* * Cost varies with transformer kVA

36. TRANSFORMERS

37. COST/INVESTMENT PAD MOUNTED TRANSFORMERS* *Cost varies with transformer kVA

38. COST/INVESTMENT POLE MOUNTEDTRANSFORMERS* *Cost varies with kVA, number of phases ** Cuba manufactures 15,000/year

39. Total Installed Capacity • The present installed capacity, considering the seven main thermoelectric plants is, in round numbers, 3,000 MW. • The Grupo Electrogeno, or Distributed generation, has an installed capacity of 1,500 MW, and the Energas system, 400 MW. • The total installed capacity is then 4,900 MW. • However, the total generating capacity is around 3,200 MW, that is, 65% of the installed capacity.

40. Cuba’s Overall Energy Infrastructure • Cuba's overall energy infrastructure – from refineries to power-generating plants to electrical grids to local wiring – is in an advanced state of decay, and will require significant investment to upgrade. • Although American companies are currently precluded from involvement by U.S. law, they would seem the logical choice for upgrading Cuba's power grid once the transition to democracy is in place.