The Daily Journal.- Repairs to Venezuela’s power grid remain on hold as GE Vernova awaits the first capital injection from the Venezuelan government.
The U.S. company has already selected contractors and completed engineering and planning work, but it has yet to receive any formal orders to carry out the project.
GE Vernova CEO Scott Strazik took a firm stance. “This is not a market environment where we are going to proceed without receiving payment before we start doing the work, except for planning activities,” he stated. The executive confirmed that the company continues to await the initial capital injection.
The September agreement and the 6 GW target
In September, GE Vernova signed an agreement with PDVSA and Corpoelec to restore thermal and hydroelectric power generation, transmission networks, and substations. The plan includes an initial phase lasting six to twelve months to rehabilitate existing infrastructure and stabilize the grid.
The agreement subsequently calls for adding 1 GW of capacity within the first 24 months and another 5 GW over the following four years, bringing the total to 6 GW of new capacity. However, the U.S. company has demanded an initial payment from the Venezuelan government before beginning operations.
Power grid repairs remain stalled as oil production expands
While repairs to Venezuela’s power grid remain stalled, oil production continues to expand. A reliable electricity supply plays a crucial role in the country’s oil-driven economic recovery strategy.
Experts estimate the electricity system needs at least $25 billion in investment. In comparison, the Venezuelan Association of Electrical Engineering (Aviem) estimates a comprehensive rehabilitation would cost $15 billion to $40 billion, with the process potentially taking up to a decade.
Until the Venezuelan government makes the payment, power grid repairs will remain on hold, and blackouts will continue to disrupt both industrial operations and everyday life.
With information from news agencies.
