Cuba, an island in the Caribbean, is planning to construct a $60m bio-fuel power plant, a move that will boost the electricity generation capacity in the region.

The proposed 20MW bio-fuel power plant will be developed at a sugar refinery in the western province of Matanzas, using Chinese technology and technical support, reports Prensa Latina news agency.

This power plant will be powered by sugarcane residue, bagazo, while wood residues could be used as fuel over the next coming years.

Construction of the power plant is anticipated to commence at the end of 2013. When completed, the plant will be the first bioelectric power plant operating in the region.

Currently, around 3.8% of the electricity is being generated from renewable sources in Cuba. The island is aiming to increase the amount of clean electricity to 12%, over the next coming eight years.