Venezuela Signs Energy Agreement with General Electric

The Venezuelan government has signed an agreement with the American conglomerate General Electric to enhance the country’s electrical service. Venezuela has been dealing with frequent power outages. Critics point to issues in generation capacity, poor maintenance, and inadequate management as the causes.

The event took place at the presidential palace of Miraflores. Acting Venezuelan President Delcy Rodríguez and Eric Gray, CEO of GE Vernova—a division of General Electric—led the signing. GE Vernova focuses on electricity generation, transmission, distribution, and storage.

Rodríguez described the memorandum of understanding as a “historic step” towards the recovery of the electrical service, essential for the nation. After six weeks of collaboration and a detailed report on Venezuela’s electrical system, she urged the teams to quickly finalize a definitive contract. This agreement aims to restore 1,000 megawatts within 24 months and more than 5,000 megawatts in four years. The cost of the agreement was not disclosed.

Experts frequently highlight that daily failures in power supply are apparent in 23 states, including the capital. They often result from poor management leading to inadequate maintenance of the national electrical system. The infrastructure, particularly thermal power plants, has deteriorated. These plants once served as backup during droughts or outages at the Gurí hydroelectric plant, which supplies 60% of the nation’s energy. Venezuela faces an estimated 3,000 megawatt deficit.

The agreement follows a series of legal reforms since January. These reforms have loosened the strict state control over the energy sector, opening it to foreign investment. In response, the U.S. Department of the Treasury has eased sanctions on Venezuela, granting U.S. and foreign energy companies expanded operational capacity in the country.

Following a U.S. military operation that ousted and captured the former president Nicolás Maduro on January 3, Washington set a “three-phase” roadmap focusing on stabilization, recovery, and democratic transition in Venezuela.