Electricity

Caracas, November 10, 2026 (venezuelanalysis.com) – The Venezuelan National Assembly approved on Tuesday a reform of the Organic Law of the Electrical System and Service to open the electrical grid to the private sector amid a crisis of rising demand and recurring blackouts.

The new legislation stipulates that power generation, transmission, distribution, and commercialization can now “be carried out by the state-owned operating company, as well as by mixed-ownership and private companies holding the corresponding authorization.”

“The reform will allow private entities to provide electricity services,” National Assembly President Jorge Rodríguez told reporters after the legislative session. “It will make self-generation possible, allowing private companies to generate and supply electricity to businesses, industries, shopping centers, etc. This will help increase supply.”

The Venezuelan parliament had preliminarily approved the reform in June. A commission incorporated adjustments to the text, which deputies reviewed across several parliamentary debates before Tuesday’s final vote. The final text, seen by Venezuelanalysis, will be published in the National Gazette in the coming days.

The updated law puts an end to the state monopoly over electricity established by former President Hugo Chávez. A 2007 law identified the sector as “strategic for the nation” and merged several companies into the National Electric Corporation (CORPOELEC). 

Under the new rules, private companies can set up new power plants, build transmission infrastructure and charge a fixed toll, or receive distribution and commercialization rights in specific areas.

In addition, they can also receive concessions of state assets for a maximum of 25 years, with the responsibility of returning them to CORPOELEC or another designated state entity at the end of the period. The state will retain exclusive control over all hydroelectric generation in the Caroní basin as well as transmission and distribution responsibilities in “strategic” areas.

The law also provides that disputes or disagreements of any kind that cannot be settled amicably by the parties may be brought before Venezuelan courts or resolved “through alternative dispute resolution mechanisms.” US licenses allowing Western corporations to deal with Venezuela have demanded that disputes be settled in the US, the UK, France, or Singapore.

Regarding oil companies, the law stipulates that they must “ensure a reliable and stable supply of electricity for the execution of primary activities” through self-generation, cogeneration, or third-party contracts designed to secure operational autonomy. Oil and independent power generation firms will also not require state authorization to generate electricity for their internal networks, unless they connect to the national grid.

Rodríguez stressed that the changes do not to amount to privatizing electricity services but rather constitute an “expansion.”

“An appropriate sanctions framework has been established, along with guarantees for private entities to participate. This is not privatization, but an expansion that allows private companies to provide services, particularly to large consumers,” he stated.

The head of the legislature added that electricity consumption tariffs will be computed in foreign currency and converted using the official exchange rate set by the Central Bank of Venezuela (BCV). He also disclosed a policy of subsidies intended to shield vulnerable sectors.

“This will primarily benefit people who, because of their income level, cannot afford the full tariff, unlike industries or major retailers,” he concluded.

The legislation also establishes a National Electric System Superintendency, empowered to establish tariffs, initiate administrative investigations, and impose penalties on those who violate the law. Operators may face fines of up to 2 percent of their gross revenue for failing to comply with regulations governing electrical installations, disregarding instructions issued by competent authorities, refusing to provide requested information, or obstructing inspections.

Consumers, meanwhile, may be fined between US $50 and $10,000 for unauthorized use of electricity, with similar penalties for unauthorized consumption, and ten times larger ones for connecting equipment that causes disturbances. The same range of fines applies to tampering with, damaging, or modifying meters and supplying electricity to third parties without authorization, among other violations.

The new law also allows the Venezuelan government to grant tax breaks to private corporations at its discretion to “promote the expansion, efficiency, or environmental sustainability” of the electric system.

The electricity reform, which follows major legislative pro-business overhauls to the mining and energy sectors, comes amid a persistent electricity crisis that sees most of the country face daily blackouts, sometimes lasting up to 12 hours.

Residents have staged recurring protests. On Monday, a crowd blocked the Argimiro Gabaldón highway connecting Barcelona and Puerto La Cruz in Anzoátegui State for several hours.

The Venezuelan Observatory of Social Conflict (OVCS) registered 531 protests related to electricity services nationwide in September. For her part, Acting President Delcy Rodríguez has criticized the demonstrations, affirming that “burning tires does not add a single megawatt to the electric grid.”

Venezuela currently produces only around 12,000 MW, roughly 40 percent of its installed capacity, and faces a generation deficit of over 4,000 MW. Venezuelan authorities have pledged to add 1,300 MW to the grid before the end of the year and have negotiated agreements with GE Vernova, Siemens, and IMPSA to bring paralyzed power plants back online.

Targeting short-term improvements, CORPOELEC recently signed an agreement with Turkish company Karpowership to lease two power-generating vessels that would add 200 MW to the grid in western Zulia State, one of the states hardest hit by electricity shortages. 

However, Venezuelan officials have not provided additional details on the contract, including its cost, duration, and fuel supply.

Edited by Ricardo Vaz in Caracas.

Laura and Callum Anderson say the better weather and cheaper cost of living made it a no-brainer

A family swapped “miserable” Scotland for the Mediterranean – where their energy bill costs just £85 and they have no pressure to “keep up with the Joneses”.

Laura and Callum Anderson, both 42, moved out to Malta with their youngest daughter when their heating bill shot up to £1,100 a month. They swapped their £1,600 a month four-bed farmhouse in Fife for a three-bed penthouse for £2,500 per month and moved out in October 2026. And despite the jump on rent, they are saving £1,251 a month – as bills and petrol is cheaper and there is no council tax.

Laura, a business owner, living in Naxxar, Malta, said: “If we weren’t living in Malta we would have had to move out of our house.

“It was £690 per month just for oil, with electricity on top of that, wood on top of that, it was £1,100 just to heat the house and put the lights on. Electricity is £85 per month here. We basically wanted to move to Malta to enjoy life.”

Laura and Callum had previously lived in Malta between 2010 and 2013 after they were able to get a full relocation package through Callum’s work as a recruitment consultant – but moved back to Fife to set up their own business.

And after returning to renew their vows in 2024, they decided to move back out permanently. Laura said: “We came here in 2024, and we renewed our wedding vows.

“At that point we were like, ‘Why are we staying in Scotland, what is the point?’ I love Scotland and I’m very much an outdoorsy person and like walks with the dogs and being at the beach even in Scotland, but it was just miserable.

“Last winter in Scotland was especially bad. It didn’t stop raining for six months. It sounds like an exaggeration, but it must have rained for 26 days every single month.”

Laura’s health was also a motivation to move. She was diagnosed with Premenstrual dysphoric disorder (PMDD) – a severe form of premenstrual syndrome that causes intense emotional and physical symptoms – such as depression, anxiety, irritability, and fatigue – in November 2023 and had to pay for private care as she struggled to get help on the NHS.

She struggled with her mental health and said the “doom and gloom” of Scotland was not helping, and so they made the “positive step” and made the move.

“I was paying a fortune in tax and in private medical insurance,” she says. “It makes me feel resentful at my own country and I don’t want to feel like that because I love Scotland.

“Because of my PMDD, I struggle a bit with my mental health and being in Scotland in the doom and gloom was not great for my mental health so we decided to make a positive step by moving.

“We were spending too much time indoors with the fire on. We ended up getting dragged into watching the news with the doom and gloom about how taxes have gone up and people can’t afford to feed themselves. It’s very negative.”

They flew out in October 2026 on digital nomad visas with youngest Mia, 17 – with Lucy, 20, flying out to visit whilst she remains in the UK to attend university. Laura and Callum still run their business selling saunas remotely, and have a team based in Scotland covering the day-to-day operations.

Their daughter, Mia, plans to become a strength and conditioning coach, and Laura says Malta is a “hub” where people travel to train up. They flew out without a permanent home sorted, choosing to stay in an Airbnb so they could view properties in person.

Now settled in a three-bed penthouse, Laura says the “pressure to keep up with the Joneses” is not as big a thing out in Malta. She said: “Our car in Scotland was included on our insurance and it was £650 per month.

“We lived on a farm and I had to drive 20 minutes just to get to the shop. Fuel was £130 per week. Here, fuel is £33 every two weeks. It was £180 per month for Sky broadband and Wi-Fi. Here, Wi-Fi is £25.”

Paying £750 for their visas, they are “really happy” they made the move. “Apart from missing our eldest daughter, we’re not missing anything,” she said.

“We’ve deliberately chosen to live in an area with access to good walks for the dogs. Walking is one of the things that really helps my head so it’s important I go out on those long walks.

“I love Scotland and I’m more than happy to go back and visit but it was stifling and there’s a lot of positivity here.”

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Price breakdown per month

Fife

Rent: £1,600

Electricity: £1,100

Council tax: £150

Car: £650

Fuel: £520

Broadband and Wi-Fi: £180

Private healthcare: £240

Total: £4,440

Malta

Rent: £2,500

Electricity: £85

Car and insurance: £375

Private medical insurance: £138

Fuel: £66

Wi-Fi: £25

Total: £3,189

About 850,000 people lose power after Russian attacks on energy infrastructure in Ukraine’s Dnipropetrovsk and Kharkiv.

More than 600,000 people in Ukraine’s eastern Dnipropetrovsk region are without electricity after a Russian overnight attack on an energy facility, a Ukrainian energy provider has said.

Residents across the Pavlohrad, Samarivskyi, Kamianske and Dnipro districts, as well as the city of Dnipro, faced electricity outages on Sunday, power company DTEK wrote in a Telegram post.

Engineers were at the scene attempting to restore the damaged facility, but “repairs are being complicated by repeated attacks”, DTEK said.

Ukraine is bracing for yet another harsh winter of war as Russia ramps up daily aerial attacks, raining down drones and missiles on the power network.

Another 250,000 Ukrainians were left without power in the Kharkiv region in northeastern Ukraine on Sunday after Russia struck an infrastructure facility there.

“No casualties have been reported, ” said Mykola Baksheyev, mayor of Zlatopil city, on Telegram.

“Power engineers are currently working to repair the damage; however, the exact timeframe for restoring the electricity supply remains unknown.”

The attacks came a day after Ukraine’s Ministry of Energy said a massive attack on energy facilities had plunged residents in five regions into darkness and significantly hampered electricity transmission in Kyiv.

President Volodymyr Zelenskyy has accused Russia of intensifying attacks to put pressure on Kyiv at United States-brokered trilateral talks in Abu Dhabi, United Arab Emirates, scheduled for Tuesday and Wednesday.

Russia’s Ministry of Defence stated on its Telegram channel that its forces will “continue to carry out strikes against Ukrainian fuel and energy infrastructure facilities” that they say are used to aid the Ukrainian military.

Within a week, two of the three largest cloud computing companies in the world signed 20-year contracts for nuclear electricity. Amazon has taken 690 megawatts from Constellation’s Calvert Cliffs plant in Maryland, including 190 megawatts of additional generating capacity expected between 2030 and 2032. Google has signed an agreement that will bring 890 megawatts of additional nuclear capacity into the United States. Constellation is investing more than $4.3bn to upgrade 11 reactors across Illinois, Pennsylvania, and New Jersey. Neither agreement, however, involves building a new nuclear reactor. Rather, they are paying to generate more output from reactors that already exist – some of which are even older than the companies themselves.

A few years ago, such agreements would have seemed inconceivable. Nuclear power had fallen out of favour following accidents at Three Mile Island in 1979, Chornobyl in 1986 and Fukushima in 2011. Germany phased out nuclear power, while Japan shut down its reactors after Fukushima, although it has since begun restarting them. In many democratic countries, advocating for nuclear energy became politically difficult.

Today, an undamaged reactor at Three Mile Island is being brought back into service, with Microsoft contracted to buy its output for 20 years. The US Department of Energy is providing up to $4.4bn in loans to support the restart of three shuttered plants, with the aim of restoring about 2.25 gigawatts. Palisades in Michigan, which was closed in 2022, is contracted to be generating again by March 2027. If successful, it would become the first US commercial nuclear plant to restart after entering decommissioning.

What has changed?

The quiet reversal

In the last decade, the industry’s answer to AI’s energy problem was efficiency – things such as better chips, smaller models and smarter cooling seemed appealing and feasible. Industry conferences featured discussions about performance per watt, with modern artificial intelligence (AI) chips performing more computation per unit of electricity than their predecessors.

Yet those efficiency gains did not reduce overall electricity demand. Instead, each gain was quickly put towards something larger. Even when DeepSeek demonstrated that a competitive model could be trained at a fraction of the computing cost many had expected, the result was not a reduction in industry spending. Instead, laboratories continued planning more training runs, models that reason for longer, agents that work continuously in the background, and video generation.

This would not be the first time something like this has happened in history. In 1865, William Jevons observed that more efficient steam engines made Britain burn more coal, not less, because cheaper power created uses that had not existed before. The International Energy Agency estimates that global data centre electricity demand will more than double to around 945 terawatt-hours by 2030, even assuming continued improvements in efficiency.

Hence, the industry has changed strategy – unable to shrink demand, companies are now buying up supply.

The arithmetic of waiting

Money, however, cannot solve every problem quickly.

A new large reactor takes a decade or more from decision to electricity. Tech companies are investing in small modular reactors to power their data centres, although many of these projects are not expected to deliver electricity until the early 2030s. So far, very few of these have been built anywhere in the world. Thus, while reactor restarts and upgrades are the faster option, the “fast option” still means 2027, 2028, 2029, or beyond.

AI capital expenditure, however, does not operate on that same calendar. The chips being installed this year could be overtaken by newer technology long before the 20-year electricity contracts powering them expire. This discrepancy underpins all of these announcements, yet the industry has not addressed the implications if demand weakens while contractual obligations remain.

Who pays in the meantime

This is where the story stops being about technology.

Most of these deals sit inside PJM, the grid operator serving roughly 67 million people across 13 American states and Washington, DC. PJM uses capacity auctions to secure sufficient electricity-generating resources for future demand, with the associated costs ultimately passed on to consumers through their electricity bills. Capacity prices have reached the regulatory price cap in three consecutive auctions. According to the grid operator’s independent market monitor, data centre demand contributed approximately $29.4bn in capacity costs across the four most recent auctions. In the latest auction alone, around $6.3bn of these costs were attributed to data centre demand, including forecasts for facilities that have yet to be built.

In effect, households are already paying higher electricity capacity charges, partly because of projected demand from facilities that may never become operational. The Natural Resources Defense Council estimates that, by 2028, the typical household within PJM could face an additional $70 per month in electricity costs if current trends continue. These rising costs are also having political consequences. Recent US polling shows growing public dissatisfaction with data centres, with electricity bills among the main concerns. In response, Virginia has established a separate electricity rate class for data centres, Ohio has introduced minimum billing requirements, and Illinois is debating legislation.

The aim of the Google agreement is to tackle this objection. Its underlying principle is that major new electricity consumers should bring additional generation capacity rather than compete with existing users for an already constrained supply. This approach represents a constructive step towards mitigating the pressure that data centres place on electricity systems.

However, the arrangement remains voluntary. In October 2026, US federal regulators rejected most of PJM’s proposal to require large new electricity consumers to provide their own generation capacity. As a consequence, the industry is voluntarily offering a commitment that regulators have so far declined to impose through PJM’s proposed rules. This poses the question: how long will such voluntary commitments remain viable if the costs of fulfilling them begin to rise?

What the Gulf should take from this

For Gulf countries preparing their own AI infrastructure expansion, the US experience offers a warning about the costs of getting these arrangements wrong.

For countries with abundant energy resources, the expansion of AI infrastructure presents a significant opportunity.

Qatar’s sovereign fund has committed to a $20bn joint venture with Brookfield for AI infrastructure, beginning with a first phase of roughly 300 megawatts and potentially expanding to near 1.5 gigawatts. Abu Dhabi is pursuing plans for up to five gigawatts of AI data centre capacity. Saudi Arabia is targeting almost two gigawatts through HUMAIN. The region’s competitive advantage is substantial. As demand for AI computing grows, access to electricity is becoming an increasingly important factor in determining where computing infrastructure is built. The Gulf is well positioned to capitalise on this demand.

However, the scale of the proposed developments warrants scrutiny. If the proposed 1.5-gigawatt build-out is completed in Qatar, it would represent electricity demand equivalent to approximately 12 percent of the country’s installed generating capacity. Electricity allocated to AI infrastructure cannot simultaneously serve other purposes, meaning the opportunity costs of these projects deserve serious consideration.

In the United States, the debate over AI infrastructure is becoming increasingly centred on who ultimately bears the cost of its electricity demands, with many of the major commitments already in place. The Gulf is in a rare position of being able to settle that question first: what the industrial tariff is, who funds the new generation, what happens to the contracts when the hardware ages, and what long-term economic benefits the country would see beyond energy revenues and a limited number of jobs.

While hosting AI infrastructure can generate considerable economic value, the greater strategic opportunity lies in determining the conditions under which that infrastructure operates. For Gulf countries, the opportunity to establish these terms exists now, before large-scale commitments constrain their options.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.