Caracas (theassemblymedia.com) — Power outages lasting several hours, or even entire days, have become routine across Venezuela, fueling recent localized protests in western and central regions. The Delcy Rodríguez government has acknowledged the public outrage and pledged to prioritize the years-long electricity crisis with a long-term plan to strengthen the grid, as Washington rolls out sanctions waivers.
The blackouts have affected nearly the entire territory, from urban centers in the eastern and western states to the farming communities in the interior. In September, rallies demanding solutions began to increase. In San Joaquín, Carabobo state, residents shut down the main highway while demonstrations in the states of Anzoátegui, Aragua, Guárico, and Portuguesa denounced three consecutive days of recurring service interruptions without previous warning.
In a televised address on September 29, Electric Energy Minister Rolando Alcalá said a comprehensive plan was underway to restore and expand the country’s power system. The plan aims to add 1,300 megawatts (MW) to the National Electric System (SEN) by the end of 2026, followed by another 5,000 MW over the next four years. Recent progress includes the return to service of the Termozulia 5 unit in Zulia state, which adds 150 MW to the system.
Alcalá said that, for the first time in nearly 12 years, the country had “direct access to original spare parts from the world’s leading manufacturers” for its power infrastructure. He said this would help tackle the technical updating of the electric grid more effectively than in previous years, when similar efforts had failed. Recent shipments from companies including General Electric and Siemens have arrived in the country to support round-the-clock repair work.
On September 28, the US Treasury Department’s Office of Foreign Assets Control (OFAC) issued the amended General Licenses 48D and 49B, authorizing the purchase of “goods, technology, software, or services” for Venezuela’s oil, gas, and petrochemical sectors, as well as for the “generation, transmission, storage, or distribution of electricity.”
Since 2017, a combination of US financial restrictions and sweeping asset-freezing decrees has prevented Caracas from buying the supplies needed to maintain public infrastructure, including electricity, gas, water, transport, telephone and communication systems, as well as schools, hospitals and other public institutions, according to the 2021 report by UN Special Rapporteur Alena Douhan on the negative impact of US sanctions on living conditions. Washington’s oil blockade led to diminished oil revenue and a severe lack of investment. Meanwhile, the 2017-2020 migration wave caused a brain drain, depleting the nation of professionals, technicians and skilled workers.
The country experienced days-long national blackouts in 2019, 2021, and 2024. In some cases, the government denounced sabotage of transmission lines and cyberattacks on power plants by US-backed opposition sectors. Repair work often fell short due to a lack of spare parts, droughts and climate patterns such as El Niño and La Niña.
The damage from the June 24 double earthquake caused the loss of 800 megawatts of capacity, of which 600 have been recovered, according to Acting President Rodríguez.
The sanctions waivers are part of Washington’s broader easing of restrictions since it restored diplomatic and commercial ties with Caracas. After decades of repeated attempts to oust the Venezuelan government—including the imposition of crippling economic sanctions that devastated the country’s economy—across White House administrations, the Trump government launched a military intervention in early January and abducted President Nicolás Maduro and his wife, Cilia Flores, on unproven “narcoterrorism” charges.
Since then, the United States has largely taken control of Venezuela’s oil exports, with the proceeds deposited into an account controlled by the US Treasury Department. The funds can be transferred, withdrawn, or used only under specific licenses authorized by the Treasury and Secretary of State Marco Rubio.
The easing of sanctions followed a first discussion of legislative partial reform. In June, Venezuela’s National Assembly unanimously backed a 42-article electricity reform as the government moves to modernize a grid battered by chronic blackouts. The law has entered the public discussion phase and is yet to be fully enacted. The final approval is expected before year-end.
The ongoing reform would allow mixed public-private investment under strict concession terms and public oversight. It would also open generation, transmission, distribution, and commercialization to a broader range of participants, while requiring the state to retain a controlling stake in mixed companies.
In the first discussion, lawmakers approved a new tariff framework based on actual costs to attract investment and to force distributors to compensate users for outage damages.
“This law should modernize the electricity system in an efficient, accessible, and sustainable manner. To that end, I propose creating the position of comptroller and advocate for electricity efficiency,” said opposition deputy José Gregorio Correa.
Under the new regulatory framework, Electric Energy Minister Alcalá has announced strategic agreements with Brazil’s Eurobras, Argentina’s IMPSA, US’ GE Vernova, and Germany’s Siemens covering hydroelectric and thermoelectric generation, as well as equipment and technology for transmission, generation, and distribution.
Eurobras is expected to help restart Units 17, 18, and 20 at the Simón Bolívar Hydroelectric Power Plant (El Guri), which is located in the southern state of Bolívar and is responsible for about 70 percent of the country’s electricity supply. The remainder of the supply comes from thermoelectric power plants fueled primarily by fuel oil, other petroleum products, and natural gas.
The agreements with IMPSA center on projects at the Tocoma and Macagua plants. Together with the Guri and Caruachi plants, they comprise Venezuela’s Lower Caroní Hydroelectric Complex, which is the main backbone of the country’s national electricity grid.
Meanwhile, the deals with GE Vernova and Siemens are expected to provide the necessary parts and technology to upgrade the generation and transmission systems. On September 2, the state-owned oil company PDVSA and GE Vernova signed a partnership agreement to restore the power infrastructure that serves the oil industry.
Normalizing electricity service is essential for Venezuela’s socioeconomic recovery following years of economic crisis under U.S. sanctions. However, expectations remain fragile as the sanctions regime remains intact and licenses require periodic renewal by OFAC. This licensing scheme is determined by Washington’s foreign policy toward Venezuela.