Venezuela electrical grid requires up to $40 billion for recovery

The Venezuelan electrical system requires an investment of between $15 billion and $40 billion to undergo a rehabilitation process that could last five to ten years, according to the Venezuelan Association of Electrical and Mechanical Engineering (Aviem). Aviem president Gelvis Sequera noted that the sector has suffered from over a decade of disinvestment, leading to infrastructure congestion in transmission and transformation.

GE Vernova Venezuela President Carlos Mousadi confirmed the deterioration of the national grid, citing a lack of manufacturer-required maintenance. Mousadi stated that inspections of turbines and substations revealed precarious equipment conditions. In response to a request from the Minister for Electric Energy, GE Vernova will implement a plan for technical training, certification, and monitoring.

While the government attributes the energy crisis to sanctions and climate phenomena, experts point to corruption and maintenance failures. Recent developments include a strategic alliance between PDVSA and GE Vernova to recover electrical infrastructure for the oil industry, as well as an agreement with the state electric corporation to strengthen the national system.