Venezuela has signed an agreement with GE Vernova to rehabilitate and expand its electricity system, with work expected to cover power generation as well as the country’s transmission and distribution infrastructure.
U.S. Energy Secretary Chris Wright said the immediate goal is to stabilise the grid within six to 12 months. The agreement was signed during his visit to Caracas this week.
Under the plan, GE Vernova expects to bring 1 gigawatt of reliable power online within the first 24 months. A further 5 GW is planned over the following four years, according to the U.S. Department of Energy.
The work will cover both thermal and hydroelectric generation, along with transmission and distribution infrastructure and key substations.
Attention will also turn to the Guri hydroelectric complex, one of the country’s most important sources of electricity. Wright told Reuters that Guri is operating at about half of its designed capacity, with ageing turbines and transmission problems limiting output.
The September agreement follows an earlier cooperation agreement signed by GE Vernova and Venezuela’s state electricity company, Corpoelec, on June 15. That agreement established a framework for rehabilitating and strengthening the country’s power infrastructure.
Venezuela’s electricity system has faced years of outages and declining generation. The U.S. Department of Energy said in January that electricity production nationwide had fallen by more than 30%, attributing the decline to prolonged underinvestment and shortcomings in operations and maintenance.
Restoring electricity supply is also tied to Venezuela’s efforts to raise oil production. Reliable power is needed across oilfields, processing facilities and other infrastructure as the country seeks new investment in its energy sector.