A company led by a former UK energy minister has struck the UK’s first major renewable energy deal with Cuba.

Guernsey-headquartered Havana Energy has been set up to focus on the Cuban energy sector. The company’s chairman is ex-energy minister Brian Wilson.

Havana Energy has signed a strategic partnership to build biomass power generation plants next to sugar mills.

A pilot 30MW power plant will be built first around 400km from Havana, with four further plants on the drawing board.

Currently, Cuba gets 7% of its energy needs via renewable energy sources, and the government is eager to increase this.

Mr Wilson said: “Having tried for more than a decade to promote closer economic links between the UK and Cuba, I am delighted to be involved in a project that demonstrates the benefits of such co-operation. Cuba has an excellent record both in providing electricity for its people and promoting environmental sustainability. This project will support both objectives.”

Cuba’s Ministry of Sugar and the National Electricity Board have a strategy to increase power generation in all its sugar mills to decentralise the grid and provide power generation in areas which have a weaker supply.