Venezuela approves electricity sector reform to allow private investment

The Venezuelan National Assembly voted unanimously on June 2, 2026 to amend the Organic Law of the Electrical System, opening generation, transmission, distribution and commercialisation of electricity to private capital for the first time since 2007. The reform creates four participation models—including fully private firms—and grants concessions up to 25 years, renewable for 15 more, with tariffs set to cover real costs and ensure reasonable investor returns.

Proponents say the change will attract foreign investment, modernise the grid and help resolve chronic power shortages that impair oil and gas production. Deputy Ezio Angelini stated, "Esta ley modernizaría el país e introduciría empresas privadas para la recuperación de centrales hidroeléctricas y termoeléctricas." The legislation also highlights the potential to use up to 7,500 MW of wasted hydroelectric capacity in Bolívar’s Bajo Caroní region for industrial‑scale Bitcoin mining, a prospect championed by Bitcoin miner Alessandro Cecere.

Critics note several provisions that could limit the reform, such as state reversion of assets at zero cost and discretionary intervention powers. The bill still requires a second and final parliamentary vote before becoming law.