In recent years, the conversation around decentralized energy production has gained momentum, capturing the attention of both policymakers and the public alike. With the ongoing global energy crisis serving as a backdrop, the shift towards local and smaller-scale energy solutions has become increasingly relevant. This article explores the implications of such a shift, particularly in light of challenges faced by regions like Ukraine, Puerto Rico, and Cuba, each navigating their unique energy dilemmas.
Yves here. Readers often express concern about some of the facts and perspectives featured in John Ruehl’s articles. Nevertheless, he introduces significant concepts that often ignite engaging debates in the comments section. In this piece, he addresses a growing trend towards decentralized energy production that may gain traction, either through policy decisions or natural developments. A key issue arises: as smaller-scale energy generation—such as solar panels—becomes more prevalent, tensions related to perceived grid fairness will likely intensify. The troubled state of U.S. grid maintenance, highlighted by examples like California’s Pacific Gas and Electric (PGE) and Texas’ overstretched infrastructure, raises concerns even before considering the impact of accelerated AI data center constructions. The case studies of Ukraine, Puerto Rico, and Cuba provide valuable insights into these dynamics.
By John P. Ruehl, an Australian-American journalist based in Washington, D.C., and a world affairs correspondent for the Independent Media Institute. He contributes to several foreign affairs publications, and his book, Budget Superpower: How Russia Challenges the West With an Economy Smaller Than Texas’, was published in 2022. Follow him on X @john_ruehl. Produced by Economy for All, a project of the Independent Media Institute
In April, the executive director of the International Energy Agency (IEA), Fatih Birol, referred to the ongoing global energy crisis as the “biggest energy security threat in history.” Over the summer, events occurred that validated his warning. In late July, the United States authorized the grid operator, Southwest Power Pool, to utilize backup power resources across 17 states due to escalating demand and extreme heat. Simultaneously, droughts in Europe forced nuclear power plants to either reduce or halt operations. By the end of August, EU gas stock levels hit a record low, while Bangladesh imposed tighter restrictions on business operating hours due to a worsening gas shortage.
Extreme weather continues to disrupt energy production and transportation routes, compounding challenges brought about by conflicts in the Middle East and Ukraine. Additionally, the demand for electricity is rising globally due to economic development, the proliferation of electric vehicles, and a burgeoning AI sector, placing immense pressure on systems designed for a more stable energy environment. After decades of expanding energy supply and security, the 2020s have ushered in a more strained energy landscape amid a fragmented global political situation that affects nations across various economic and resource landscapes.
This mounting strain has sparked renewed interest in reimagining the aging, centralized energy systems of the 20th century. Many national electricity grids were developed during times of rapid urbanization and industrialization, making it financially viable to produce electricity at massive plants and transport it over long distances. However, studies have found that “up to 35.655 percent of the energy transmitted is lost throughout this process,” as highlighted by a 2025 article in the Journal of Electrical Systems and Information Technology.
The advent of solar panels, batteries, smaller generators, and digital controls has partially decentralized energy production and storage capabilities. Many of these technologies are categorized as distributed energy resources (DERs), which can function independently or contribute electricity to the main grid. They can also be assembled into microgrids to ensure power for local communities when the larger grid fails.
Significant advancements in decentralized energy infrastructure have occurred predominantly in wealthier nations with stable governments. Leading private corporations, such as General Motors and Tesla, harness their own software to connect household batteries and solar energy systems to the grid. By contrast, less affluent regions grappling with conflict, disasters, or economic woes are now testing whether distributed energy can help maintain access to electricity as traditional systems falter.
Ukraine Under Attack
More than four years into the war, Russia has decimated much of Ukraine’s major power plants and transmission infrastructure. According to Ukrainian investment firm System Capital Management (SCM), “Russia has systematically targeted energy infrastructure with missile and drone strikes, destroying or occupying roughly two-thirds of Ukraine’s prewar power-generation capabilities.”
Meanwhile, as rebuilding efforts continue, Russia is increasingly focusing on smaller facilities. With severed ties to Russian energy, Ukraine’s prewar generation capacity has plummeted by nearly half—down to 27 gigawatts (GW) from 56.1 GW, as reported by a 2025 analysis from the Center for Strategic and International Studies.
Ukraine’s integration into the Continental European Grid has provided some relief through energy imports. However, Ukraine is also pioneering microgrids to reduce dependence on vulnerable transmission networks. These systems are geographically dispersed, making individual installations less appealing as targets. Solar microgrids are keeping essential services, like hospitals and water systems, operational when the main grid collapses.
Smaller gas turbines have proven effective, but renewable sources have become crucial for maintaining energy access. In 2025, DTEK Renewables collaborated with Octopus Energy Group to implement rooftop solar and battery storage systems at 100 public and business locations over three years. Additionally, Ukrainian towns have established “‘invincibility points’—designated emergency shelters stocked with heat, communication resources, and necessities,” as reported by Business Insider. Currently, the central city of Vinnytsia boasts five microgrids that integrate local energy generation from solar, gas, and hydropower systems, with plans to add five wind farms in the next two years.
To enhance larger energy projects, Ukraine is ensuring they are geographically widespread. Notably, DTEK and American firm Fluence launched Ukraine’s most extensive battery storage system in 2025, capable of generating 200 megawatts across six sites. The approximately $145 million project was completed in just six months—one-quarter of the typical timeframe for similar endeavors in Europe. This urgency has positioned Ukraine as “one of the fastest-growing renewable energy markets in Eastern Europe,” according to the German-Ukrainian Energy Partnership.
Though progress has been made, challenges remain. On sunny days, Ukraine’s solar capacity can yield substantial electricity surpluses; conversely, adverse conditions or Russian attacks can lead to significant deficits. As winter looms, the effectiveness of Ukraine’s emerging network of smaller generators, storage solutions, and microgrids will be tested against the backdrop of its vulnerable centralized grid.
Puerto Rico and Self-Reliance
Since 2017, Puerto Rico has faced a series of natural disasters that have exposed the fragility of its energy system. Hurricanes Irma and Maria devastated the grid in 2017, resulting in an unprecedented 11-month blackout, recognized as the longest in U.S. history. Subsequent earthquakes in 2019 and 2020, along with Hurricane Fiona in 2022, have perpetuated the cycle of outages, including a two-day blanket blackout in 2025. As noted by Politico, “Puerto Ricans endure approximately 15 percent more service interruptions and experience outages lasting 21 percent longer than their counterparts on the mainland.”
As the poorest U.S. jurisdiction, Puerto Rico has received inconsistent support from Washington. In the aftermath of Hurricane Maria, federal efforts initially leaned toward repairing the centralized grid and supporting fossil fuel generation. The Biden administration later shifted focus to renewable energy and distributed systems, but bureaucratic hurdles impeded progress. The Trump administration also reversed course, canceling up to $450 million in funding for grid resilience and distributed energy initiatives in January 2026.
However, Puerto Ricans have actively sought paths to self-reliance. After Hurricane Maria, rooftop solar installations nearly doubled within a year. By 2020, engineering expert Agustín Irizarry Rivera expressed to The Intercept that adopting solar panels had become more cost-effective for many compared to settling electricity bills from PREPA (Puerto Rico Electric Power Authority). Rivera is also a member of Queremos Sol, or “We Want Sun,” one of the community coalitions advocating for the adoption of distributed solar solutions.
In 2023, the popularity of rooftop solar, along with home battery systems and generators, surged so much that Puerto Rico’s private grid operator, LUMA Energy, began integrating them into the broader system through its Customer Battery Energy Sharing (CBES) initiative. These privately owned energy storage systems now function within a virtual power plant, enabling stored electricity to be dispatched during peak demand or emergencies.
For example, during a power outage in June, residential solar and battery company Sunrun collaborated with LUMA to utilize power from over 33,000 homes, generating 30 MW during four-hour intervals across two evenings. In July alone, more than 70,000 household batteries contributed 48 MW to the grid, helping to prevent a significant blackout. This demonstrates how DERs can rapidly adapt to and stabilize a stressed grid more effectively than centralized generation, as highlighted by Pew Research.
Now, rooftop solar accounts for over 10 percent of Puerto Rico’s electricity supply, emerging as the territory’s second-largest source of power, trailing only petroleum. By shifting focus from centralized power systems, Puerto Rican households and businesses are actively creating their own localized energy alternatives.
Cuba Caught Between Decay and U.S. Pressure
Similar to Puerto Rico, Cuba’s electrical grid has suffered from adverse weather events, but its centralized system has been further stressed by fuel shortages and heightened U.S. pressure during the Trump administration. On August 3, 2026, Cuba’s national electrical grid failed for the sixth time that year, following another nationwide blackout just a day prior.
Traditionally, over 90 percent of Cuba’s electricity has been generated by 16 major oil-fired thermoelectric plants, many of which were constructed between the 1960s and 1980s. The collapse of the Soviet Union led to significant oil shortages in the 1990s, but subsequent support from Venezuela and Russia helped stabilize the system. However, after 2015, Venezuelan oil exports to Cuba dropped sharply, and starting in late 2024, the grid has experienced recurrent major failures as fuel supplies became increasingly limited due to U.S. sanctions.
As nine thermal plants remained offline due to maintenance and breakdowns, Cuba’s energy grid—which has an approximately 3,000 MW installed capacity—was producing only 1,278 MW at peak demand in April, according to Electric Choice. Even the distributed diesel generators previously utilized to sustain critical systems are largely incapacitated due to reliance on imported diesel and fuel oil. A U.S. waiver allowed a Russian tanker to deliver about 700,000 barrels of crude to Cuba in March, but this supply only lasted a few weeks.
China has emerged as a critical ally in addressing these energy challenges. In 2024, Beijing announced a collaboration with the Cuban government to establish 92 mid-sized solar parks with a total capacity of 2,000 MW by 2028, with ongoing installations already in place. This distribution aims to reduce Cuba’s reliance on its aging large power plants.
Additionally, Chinese firms are supplying equipment via commercial channels, resulting in solar panel exports to Cuba increasing from $3 million in 2023 to $117 million in 2025, according to energy think tank Ember. Cuban households are also starting to adopt solar technologies, particularly in wealthier areas of Havana, where residents are installing their own solar and battery systems to circumvent the unreliable grid. However, the initial cost remains a barrier for many in poorer regions.
Amid deteriorating infrastructure and external pressures, Cuba’s options are limited. While household energy systems are helping alleviate dependence on the traditional grid, the growth of distributed solar parks is providing newfound electricity generation across the island. Nevertheless, uncertainty surrounding Cuba’s energy security is likely to persist moving forward.
A Decentralized Future?
The experiences of Ukraine, Puerto Rico, and Cuba highlight that although these regions share distinct challenges, they are all grappling with the pressing need to sustain their electricity systems. Their conditions also reflect broader trends emerging across various nations. For instance, Taiwan is decentralizing its energy grid in response to potential threats from China. Similarly, countries in Latin America are looking to China as viable alternatives to U.S. political and economic influence.
As Ukraine and Cuba become battlegrounds in the global competition for promoting energy technologies, the narrative is shifting at the local level. Puerto Rico exemplifies how unreliable centralized systems and neglecting community needs can catalyze the rapid adoption of decentralized energy solutions.
Across the Global South, countries are experimenting with localized energy systems, effectively “leapfrogging” over centralized grids that historically underserved remote communities. Even in the U.S., despite its wealth and extensive energy resources, a similar approach can yield benefits. When residents of Gary, Indiana experienced prolonged power outages, distributed systems could have provided essential local support.
Though challenges remain in scaling local DERs, these case studies illustrate a pathway to enhancing the resilience of electricity systems. The aim is to expand generation and storage across smaller networks, making such systems applicable not only in conflict-ridden regions but also in any country where centralized infrastructure leaves communities vulnerable to disruptions.
