The electricity sector in Venezuela is heavily dependent on hydroelectricity, with this energy source accounting for 64% of the country's electricity generation in 2021.[1] The country relies on six hydroelectric plants, with Central Hidroeléctrica Guri providing the majority of this capacity. In 2021, natural gas and petroleum contributed 25% and 11% to electricity generation, respectively. Managed by CORPOELEC, the sector has declined due to outdated infrastructure and insufficient investment, reducing generation from 120 billion kWh in 2013 to 95 billion kWh in 2021. Despite a 99% electrification rate in 2019, frequent power outages have worsened, peaking with a nationwide blackout in 2019 and increasing by 22% from 2021 to 2022. Fuel shortages have also hampered power plant operations.[2]
The electricity sector in Venezuela is heavily dependent on hydroelectricity, which accounted for 64% of the nation's electricity generation in 2021. Besides hydroelectric power, Venezuela also relies on natural gas and petroleum, contributing 25% and 11%, respectively, to the total electricity output that year. The country operates six hydroelectric plants, totaling a capacity of 16,010 megawatts (MW), with the Central Hidroeléctrica Guri in Orinoco being the most significant, accounting for 64% of Venezuela's hydroelectric capacity. This reliance on hydroelectricity highlights the grid's vulnerability to fluctuations in water availability.
From 1980 to 2000, Venezuela's electricity consumption almost tripled from about 30 to 88 terawatt hours (TWh), primarily met through hydroelectric expansion, while thermal capacity stayed flat. By 2002/03, electricity theft and drought-induced shortfalls led to a mid-2000s policy shift towards enhancing thermal plant capacity, which nearly doubled. Despite the regional trend towards solar and wind energy since 2015, Venezuela's efforts to establish wind energy, with a projected 50 MW capacity, failed to result in operational facilities.[3]
In 2015, Venezuela produced 75 TWh of hydropower, which accounts 1.9% of world's total,[4] a small increase over the production of 2004 of 70 TWh .[5] The installed capacity had however in 2012 reached 26 GW[6] from a total of 13.76 GW at the end of 2002, where 4.5 GW were under construction and 7.4 GW planned.[7] The World Energy Council energy resource report of 2010 estimates the gross theoretical hydropower production could reach 731 TWh per annum, of which 100 TWh are economically exploitable,[8] an increase over the 320 TWh estimates of 2004.
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
| 122.9 | 127.9 | 132.6 | 130.9 | 125.3 | 114.7 | 110.3 | 95.4 | 80.1 | 74.5 | 76.7 |
The largest power companies are state-owned CVG (EDELCA), a subsidiary of the mining company Corporación Venezolana de Guayana (CVG), and Compania Anonima de Administracion y Fomento Electrico accounting respectively for approximately 63% and 18% of generating capacities. Other state-owned power companies are (ENELBAR) and (ENELVEN) and Energía Eléctrica de la Costa Oriental (ENELCO) or ENELVEN-ENELCO (approximately 8% of capacities). In 2007, PDVSA bought 82.14% percent of Electricidad de Caracas (EDC) from AES Corporation as part of a renationalization program. Subsequently, the ownership share rose to 93.62% (December 2008).[11] EDC has 11% of Venezuelan capacity, and owns the majority of conventional thermal power plants.[12] [13] The rest of the power production is owned by private companies.
The national transmission system (Sistema Interconectado Nacional, SIN) is composed by four interconnected regional transmission systems operated by EDELCA, CADAFE, EDC and ENELVEN-ENELCO. Oficina de Operación del Sistema Interconectado (OPSIS), jointly owned by the four vertical integrated electric companies, operate the SIN under an RTPA regime.[12]