Venezuela signs deal with General Electric Vernova to rebuild power grid

Venezuela's interim president has signed an agreement with General Electric Vernova to help rebuild the country's electricity grid, in a move announced at the presidential palace in Caracas. Delcy Rodríguez said the deal was a step towards restoring what she described as an essential service. The agreement comes as the country continues to face frequent and prolonged power cuts.

Sponsored

Rodríguez announced the signing at a televised event on Monday, according to the supplied report. The deal was struck under Energy Minister Rolando Alcalá, an electrical engineer appointed by Rodríguez three months ago. The report says the agreement is with the US company's local branch, General Electric Vernova, and is part of a broader opening to US investors and companies.

The electricity system has long been under strain, with outages often lasting 10 hours or longer and affecting major cities including Caracas. The report says the grid was nationalised in 2007 under Hugo Chávez and has suffered from a lack of investment and maintenance, alongside high consumption. The government has previously blamed drought for reduced output at the Guri hydroelectric power dam, a key source of electricity, but analysts have argued that structural problems in the grid have been central to the crisis.

The deal is significant because it touches one of Venezuela's most persistent infrastructure failures. Reliable electricity is central to daily life, industrial activity and any wider economic recovery. The agreement also suggests a further shift in the interim administration's approach to foreign companies, particularly from the United States, after years of tension over Venezuela's political and economic direction.

Sponsored

The report says Rodríguez, who was once a fierce critic of the United States, has recently cooperated closely with the Trump administration on several matters. It also notes criticism from opponents who say that while the government appears to be loosening state control over parts of the economy, key institutions remain under the control of her party. The appointment of Rolando Alcalá was presented as a change from six years in which the ministry was led by senior military figures.

What remains unclear is how quickly the agreement will translate into repairs, what specific work General Electric Vernova will carry out, and how much investment will be involved. It is also not yet clear whether the deal will ease the long-running outages that have affected Caracas and other cities. The next focus will be on implementation, financing and whether the government can deliver measurable improvements to the grid.

#Venezuela #electricitygrid #GeneralElectricVernova #DelcyRodríguez #Caracas