Venezuela’s interim President Delcy Rodriguez signed a memorandum of understanding with U.S.-based GE Vernova, General Electric’s energy division, and state-owned utility Corpoelec to repair, modernize and stabilize the country’s struggling national power grid. File Photo by Miguel Gutierrez/EPA
June 16 (UPI) — Venezuela’s government signed a memorandum of understanding with U.S.-based GE Vernova, General Electric’s energy division, and state-owned utility Corpoelec to repair, modernize and stabilize the country’s struggling national power grid.
The plan aims to restore 1,000 megawatts of generating capacity over the next 24 months and more than 5,000 MW within four to five years.
The agreement, signed Monday by Venezuela’s interim President Delcy Rodriguez, comes shortly after the National Assembly approved reforms to the country’s electricity law. The changes create a new framework that allows foreign investment in the sector after 15 years of an exclusive state monopoly.
During the signing ceremony, attended by Venezuelan government officials, company representatives and U.S. Charge d’Affaires in Caracas John Barrett, Rodriguez said the project will address both hydroelectric and thermoelectric infrastructure.
“We want to move forward steadily in the recovery of the national electricity system, for the benefit of the entire country but also to facilitate conditions for all the international investments arriving in the country,” Rodriguez said during the ceremony, which was broadcast on state television.
GE Vernova technical teams spent six weeks conducting an audit of Venezuela’s electrical system. The assessment confirmed the deteriorated condition of Corpoelec’s facilities, which have contributed to electricity rationing and widespread blackouts, particularly in western states such as Zulia, the center of Venezuela’s oil industry and a major agricultural region.
“We want to move quickly so the system works as well as possible within a few months, and I believe we can do that together,” GE Vernova Chief Sustainability Officer Roger Martella said. “We already have an agreement on the technical aspects and how we can move forward rapidly. Over the next 12 months and beyond, we will strengthen the national electric system.”
According to local media reports, the Guri Hydroelectric Plant, which supplies about 70% of the country’s electricity, has suffered significant wear because of a lack of original replacement parts. New equipment will be used to stabilize and rehabilitate generating facilities at hydroelectric dams in southern Venezuela.
GE Vernova’s equipment also is expected to help restore local thermoelectric generation capacity, reducing pressure on the Guri complex and improving energy independence for central and western regions.
Transmission lines that cross the country face constant overloads and aging substations. The plan includes energy management software and upgrades to substations to improve reliability and reduce recurring power fluctuations.
The legal reforms approved this month allow concessions of up to 25 years in power generation, transmission and distribution, providing legal certainty for companies such as GE Vernova to deploy technology and services in the sector.
The legislation also establishes stricter accountability requirements for operators and creates a formal framework for renewable energy development.
In addition to increasing generating capacity and modernizing grid operations, the agreement includes a specialized training program for Venezuela’s technical workforce.