A Structural Deficit of 2,000 MW
According to opposition deputy Ezio Angelini, Venezuela produces 12,000 MW and consumes 14,000 per day, compared with 20,000 MW produced before chavismo came to power. The government also recorded a consumption peak of 15,579 MW on May 7, the highest in nine years. Hydropower plays a structural role in the national mix, anchored by the lower Caroní complex, where the Guri dam has an installed capacity of around 10 GW. This resource, which underpins long-term hydroelectric power purchase agreements (PPAs) in many stable markets, requires a full overhaul in Venezuela before it can contribute effectively.
Over six weeks, GE conducted an analysis of the national electricity system, covering hydraulic and thermal generation, transmission bottlenecks and deferred maintenance needs. The volumes targeted by the agreement cover both the recommissioning of idle units and the reliability improvement of existing assets, to increase the effective availability of the fleet over the 2026-2030 period. Modernizing substations and protection systems will be critical to stabilizing the overall grid.
Oil Industry Recovery Contingent on Grid Reliability
Experts cited warn that the recovery of the oil industry — the country’s main economic activity — will remain constrained as long as the electricity grid is not secured. The power supply to upstream sites, processing units and port infrastructure depends directly on a reliable electricity supply. Grid rehabilitation thus constitutes, according to these analyses, a prerequisite for any sustained recovery in hydrocarbon production.
Venezuela has undergone a deep restructuring of its energy sector since the capture of leader Nicolas Maduro by the United States in January, according to AFP. The nationalization of the electricity sector in 2007 had excluded 14 companies, including some with foreign capital. Parliament has initiated work toward a reform aimed at reopening access to private actors, to attract investment and expertise in generation and grid infrastructure.