Venezuela has signed an agreement with the U.S.-based corporation General Electric to begin the restoration of its national electricity grid, interim President Delcy Rodríguez announced on Monday, June 15, 2026. The deal follows six weeks of technical assessments by the company and aims to recover 1,000 megawatts of capacity within two years, with a total target of 5,000 megawatts over four years.
Before the 1999 arrival of the chavismo government, Venezuela’s daily electricity production reached 20,000 megawatts, significantly outpacing the national consumption level of 12,000 megawatts at the time, according to opposition deputy Ezio Angelini.
Current State of the Electrical Grid
The national power system is currently struggling to meet daily demand. According to figures provided by deputy Ezio Angelini, the country produces 12,000 megawatts daily while consumption sits at 14,000 megawatts. Government data confirms the severity of the strain, noting that demand hit 15,579 megawatts on May 7, the highest level recorded in nine years.
This supply deficit has led to daily power outages, some lasting up to ten hours. While these interruptions were once rare in Caracas, they have now extended into the capital city. The current administration, led by Rodríguez since the fall of Nicolás Maduro following a U.S. incursion in January, views the GE agreement as a necessary step to stabilize essential services.
The reliance on a multinational firm to rehabilitate state infrastructure marks a shift from the 2007 nationalization policy, which removed 14 electrical companies from the market. Analysts suggest this move is likely intended to address broader economic concerns, as experts have warned that the recovery of the country’s oil industry—the primary driver of the Venezuelan economy—is fundamentally dependent on a stable electricity supply.
Potential Next Steps for Energy Infrastructure
The government is currently pursuing a legislative path to facilitate these repairs. The Venezuelan Parliament began discussing a reform earlier this month that would allow for private capital to assist in recovering the state-controlled electrical system. If passed, this legislation could serve as a framework for future international partnerships similar to the current GE agreement.
General Electric’s involvement followed a detailed survey of both hydroelectric and thermal generation facilities. While the 24-month and four-year targets for capacity recovery are the primary goals, the speed of implementation will likely depend on the success of the ongoing legislative reforms and the integration of private investment into the nationalized sector.
Frequently Asked Questions
What is the primary goal of the agreement with General Electric?
The agreement aims to recover 1,000 megawatts of electrical capacity in the first 24 months and a total of more than 5,000 megawatts within four years.
Why is the electricity grid currently considered unreliable?
According to deputy Ezio Angelini, the country faces a deficit where it produces 12,000 megawatts but consumes 14,000 megawatts daily, resulting in frequent power outages that can last up to ten hours.
How does this agreement relate to the 2007 nationalization of the sector?
The 2007 policy removed 14 electrical companies from the market. The current government is now debating a reform to invite private capital back into the state-controlled system to assist with its recovery.
Do you believe the reintroduction of private capital into Venezuela’s utility sector will be sufficient to overcome the current supply deficit?
