Privatization and Energy Recovery: Venezuela and General Electric Sign a Historic Agreement to Restore the Electricity Supply

Venezuela’s interim government and the local subsidiary of U.S. corporate giant General Electric signed a technical memorandum of understanding on Monday with the aim of intervening to restore the country’s collapsed power grid, which has been severely affected by years of neglect and Chavista inefficiency.

The signing of the agreement, broadcast by state media, marks the formal entry of U.S. private capital into a sector that has remained under strict centralized state control for the past two decades.

The official ceremony, held at the Miraflores Palace, was led by Delcy Rodríguez and Eric Gray, CEO of GE Vernova’s energy segment, the division specializing in electricity generation and storage.

The agreement was finalized after six weeks of joint audits and assessments regarding the deterioration of the national infrastructure.

Generation targets to reverse the collapse

The interim government requested to expedite bureaucratic procedures to formalize the final contract and begin engineering work.

The strategic plan stipulates the addition of 1,000 megawatts to the national grid within the first 24 months of work, with a projection to exceed 5,000 megawatts within four years. The interim authorities did not disclose the investment amounts that the execution of this binational project will entail.

"This is a historic step for Venezuela, allowing us to restore a service as essential to life in a country as the electricity supply," stated the head of the interim government, Delcy Rodríguez, during her speech.

Currently, analysts estimate the supply deficit at around 3,000 megawatts, a shortfall that results in daily outages due to the neglect of the thermoelectric plants that were supposed to back up the Guri hydroelectric plant.

Market opening following the regime’s fall

General Electric’s entry is a direct response to the legal reforms implemented since January of this year, which have sought to reverse previous economic interventionism, opening the strategic energy and hydrocarbons sectors to foreign investment and private enterprise.

As a direct consequence of these regulatory changes, the U.S. Department of the Treasury proceeded to ease its restrictive measures, allowing multinational corporations to operate directly on Venezuelan soil.

This institutional shift is part of the reconstruction strategy launched following the intervention by U.S. military forces on January 3, an action that removed Nicolás Maduro from office.

Since then, the roadmap outlined by Washington envisages strict phases aimed at stabilization, the economic resurgence of the productive sector, and the nation’s definitive democratic transition.