Venezuela and General Electric Sign Agreement to Restore Power Grid
Venezuela’s state energy company, Corpoelec, has teamed up with General Electric (GE) Vernova to address the country’s troubled power grid, which has seen severe deterioration over the years due to poor governance.
The agreement was finalized at the Miraflores presidential palace in Caracas during a ceremony presided over by Delcy Rodriguez, who is currently acting as president. As noted by the Venezuelan Ministry of Communications, this collaboration aims to tackle the daily electricity outages plaguing the nation. John Barrett from the U.S. Embassy in Caracas was also in attendance during the signing.
Rodriguez mentioned that the partnership would help gradually improve the country’s energy capacity with both immediate and longer-term objectives. Preliminary assessments were conducted by GE Vernova in the weeks leading up to the signing, allowing for a clearer understanding of the existing issues within Venezuela’s grid.
The memorandum outlines a plan to restore 1,000 megawatts over the initial 24 months, eventually aiming for more than 5,000 megawatts within four years, according to the Ministry of Communications.
“Electricity is vital for every Venezuelan household, the nation’s industrial base, and, most importantly, for the well-being of our people. This is, I think, a promising development for Venezuela,” Rodriguez stated.
Roger Martella, CEO of GE Vernova, expressed optimism about swift progress. He noted that discussions around technical details have been productive and that efforts will focus on enhancing Venezuela’s National Electric System in the coming year.
The country’s grid has suffered immensely due to years of mismanagement and corruption under the leadership of former President Hugo Chávez and current President Nicolás Maduro, leading to frequent power outages. Some regions, such as the western state of Zulia, are already grappling with recurring electricity cuts. The situation has deteriorated significantly over the years, with instances like transformer explosions occurring as recently as this year.
By the mid-2010s, the Maduro regime implemented nation-wide electricity rationing, largely exempting Caracas—the power center for the socialist government. This precarious condition escalated dramatically in March 2019, when a total failure of the national grid resulted in widespread blackouts lasting several days. In 2024, another large-scale outage was attributed to what the government referred to as “electrical sabotage.”
According to a recent report, Venezuela has an installed capacity of 36,732 megawatts, but the grid operates at only about 36% of this potential, or roughly 12,415 megawatts. This is insufficient to meet the estimated national demand of around 15,000 megawatts. Because of these energy shortages, many areas have been facing nearly daily electricity outages this year.
As of last week, certain states experienced daily outages lasting anywhere from six to twelve hours, while other regions reported interruptions averaging three to eight hours daily. Although Caracas has generally been less affected, it is witnessing an increase in power fluctuations.
Following Nicolás Maduro’s arrest in a U.S. law enforcement operation earlier this year, Rodriguez has been working to attract U.S. investment for the country’s revitalization in various areas, including energy and mining.
Rodriguez met with Energy Secretary Chris Wright in February, just after Maduro’s arrest, to discuss potential long-term partnerships across multiple energy sectors, such as oil and electricity.
