Mariel

Santa Cruz Guiteras

CéspedesNuevitas

Felton

Rente

Dr. Manuel Cereijo, P.E.University of Miami

August, 2008

Republic of CubaPower Sector

Infrastructure Assessment

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.

Cuba: Electrical Energy (at 1959)

1) 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.

2) 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.

3) Tabares. Its service territory included the northern and central part of the Pinar del Rio province.

4) Islas de Pinos Utility. Covering Isla de Pinos.

5) Many other spotted areas were served by the large sugar mill industry or the larger industrial complexes in the Island.

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.

MAIN POWER PLANTS DATAPlant Units Technology/Built Modernized Workers

Antonio Maceo, Rente 6 Soviet/1966;1978-79 1983-84 240

Antonio Guiteras, Matanzas 4

Japan/ Czechoslovakia/1978-

792002-04 100

Lidio Ramón Pérez Felton 2 Czesch/1996-2000 2005-07 145

Máximo GómezMariel 4 Soviet/1965-69;1976-78 2005-07 320

10 de OctubreNuevitas 4 Czechoslovaquia/1969 1998-06 250

Carlos M. de Céspedes, Cienfuegos

4 Japan, France/1885 2002-2007 300

Este de La Habana, Santa Cruz del Norte

3 Soviet/1988-95 2003-2007 150

MAIN POWER PLANTS OUTPUT/CONSUMPTION

Plant Output, MW Consumption, fuel oil, grams/KWH

Antonio Maceo, Rente 450 310

Antonio Guiteras, Matanzas 330 260

Lidio Ramon Perez, Felton 500 290

Maximo Gomez, Mariel 450 320

10 de Octubre, Nuevitas 503 280

Carlos Manuel de Cespedes, Cienfuegos 382 260

Este de La Habana, Santa Cruz del Norte 300 250

POWER PLANTS FUTURE INVESTMENTS

Name New Combined Cycle, $ millions total, $867/kw

Plant Conversion Combined Cycle, $ millions total, $800/kw

Antonio Maceo, Rente 390.150 360.000

Antonio Guiteras, Matanzas 286.110 264.000

Lidio Ramon Perez, Felton 433.500 400.000

Maximo Gomez, Mariel 390.150 360.000

10 de Octubre, Nuevitas 436.101 402.400

Carlos Manuel de Cespedes, Cienfuegos 331.194 305.600

Este de La Habana, Santa Cruz del Norte 260.100 240.000

Total 2,527.305 2,332.000

TOTAL INVESTMENT FOR ADDITIONAL POWER

Additional Power, MW

Cost $millions, New combined

cycle

Cost, $ millions, Plant conversion

Cost, $ millions, New single cycle

Cost, $ millions, Coal

500 433.5 400 323.5 1,069

* By 2012 Cuba will need at least 500 MW of additional installed power

GRUPO ELECTROGENO OUTPUT/CONSUMPTION

Type Output, MW Consumption, grams/KWH

Diesel 1,300 400

Fuel Oil 200 250

ENERGAS OUTPUT/CONSUMPTION

Plant Output, MW Type Consumption, MMBTU/MWH

Varadero 173 Combined Cycle 6.58*

Boca de Jaruco 238 Combined Cycle 6.20*

* NOTE: 5.50 MMBtu per barrel of No.2 Fuel oil 6.38 MMtu per barrel of No.6 Fuel oil

OIL REFINERIES, CUBA 2008

Name Location Technology Capacity, MTons/Yr

Ñico López La Habana Vacuum distillation/ Catalytic cracking 1.65

Hnos. Diaz Santiago de Cuba Hydroskimming 1.00

Sergio Soto Cabaiguan Hydroskimming 0.22

Camilo Cienfuegos Cienfuegos Mixed, Combined 4.50

* 5.7 barrels=1 ton

PROJECTED FUEL COST BASED ON 2008 MARKET CONDITIONS*

YearNatural gas($/MMBtu)

Residual Fuel Oil ($/MMBtu)

Distillate Fuel Oil ($/MMBtu)

Coal($/MMBtu)

2008 11.94 14.39 24.30 2.282009 12.66 16.72 27.65 5.512010 11.37 16.84 26.71 2.662011 10.21 14.87 21.97 2.532012 10.02 14.89 22.15 2.482013 9.12 13.46 17.65 2.462014 9.28 13.69 18.03 2.502015 9.43 13.93 18.39 2.542016 9.74 14.15 18.74 2.582017 10.21 14.42 19.12 2.612018 10.96 14.68 19.48 2.652019 11.95 14.94 19.86 2.692020 12.42 15.22 20.23 2.732021 12.97 15.94 21.07 2.772022 13.55 16.70 21.95 2.812023 14.16 17.49 22.87 2.86

*Note that these projections are subject to change at any time, and in fact can change daily.

Union Electrica, Salary/Month

0

2

4

6

8

10

12

14

Peso

s/kW

h

500 to 999kWh 1000kWh to2999kWh

Over 3000kWh

ELECTRIC TARIFF FOR INDUSTRY

0

0.05

0.1

0.15

0.2

Dol

lars

/kW

h

Low load period Medium loadperiod

Peak load period

ELECTRIC TARIFF IN DOLLARS

FUTURE INVESTMENT TRANSMISSION LINES*

* Refer to section on Transmission lines for required assumptions

Voltage Level, kV Pesos/Km

220 105,000

110 85,000

33 63,000

13.8 60,000

4.16 11,000

TRANSMISSION LINES: EMERGENCY INVESTMENT

Voltage level, kV Kms needed Investment, million pesos

220 200 21.0

110 150 12.75

33 500 31.5

13.8 750 45.0

4.16 1,200 13.2

Total 2,800 123.45

SUBSTATIONS

Voltage, kV Quantity

220 22

110 109

33 2,258

13.8 60

4.16 20

COST/INVESTMENT SUBSTATION TRANSFORMERS*

Voltage High Side, kV Cost, dollars

220 250,000

110 220,000

33 35,000

13.8 9,000

4.16 8,000

* Cost varies with transformer kVA

TRANSFORMERS

Voltage, kV Quantity

220 50

110 224

33 3,059

13.8 103

Distribution Voltages 106,818

COST/INVESTMENT PAD MOUNTED TRANSFORMERS*

Voltage High Side, kV Cost, dollars

33 4,000

13.8 3,000

4.16 2,000

*Cost varies with transformer kVA

COST/INVESTMENT POLE MOUNTEDTRANSFORMERS*

Voltage Cost, dollars**

Distribution voltages 800-1000 range

*Cost varies with kVA, number of phases** Cuba manufactures 15,000/year

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.

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.