Power purchase agreements and sustainable energy development: an approximation to the Cuban legal system

Abstract

Abstract Humanity since its origins as a species has depended on energy for its existence and development. The various energy crises that have occurred have had major negative impacts on both the economic and social spheres. The current worrying world energy situation, characterized by a constant increase in demand, polluting emissions and rising prices of energy, as well as an inevitable depletion of fossil fuels, has in recent years generated a general awareness of the need to develop sustainable energy solutions. Currently, the high dependence on foreign suppliers for energy imports has put the accessibility and affordability of energy at risk, and States have had to develop numerous initiatives to protect consumers from volatile energy prices. In this framework, widespread energy production through renewable energy sources and the use of Power Purchase Agreements (PPAs) emerge as tools to achieve energy security and mitigate energy vulnerability and poverty. This research aims to contribute to this effort by making an approximation to the Cuban legal and institutional framework of PPAs. Cuba, in line with the current global energy context, is in search of energy sovereignty based on renewable energy sources. Throughout this article, it is intended to substantiate the need to regulate PPAs in the pursuit of sustainable energy development solutions. With the enactment of Decree Law 345 of 2019 for the promotion of renewable energy sources and efficient energy use and its complementary rules, the first regulatory foundations for PPAs have been laid. While the Cuban legal energy system has been making substantial progress regarding PPAs, it must still strive to be further perfected.