Venezuela faces $15bn-$40bn power overhaul as talks with US advance

Published: 2026-04-24 20:30:10 ET GE

Published on 04/24/2026 at 08:30 pm EDT

Venezuela’s ageing electricity network will require between $15bn and $40bn in investment over the medium to long term, with a full recovery expected to take anywhere from five to fifteen years, according to preliminary technical assessments following a recent international review, DW reported.

Engineers from Siemens and General Electric compiled the estimates after inspecting key hydroelectric facilities in Bolívar state in late March 2026, including the Guri, Caruachi and Macagua plants, which together account for roughly 70% to 80% of national generation capacity.

The findings underscore extensive deterioration linked to years of insufficient maintenance, contributing to persistent system failures.

Authorities plan to prioritise Zulia state in the initial phase, an area frequently hit by outages. Interim President Delcy Rodríguez said the effort is tied to renewed diplomatic engagement with Washington. “Thanks to this diplomatic dialogue, I can say that we are now in direct contact with Siemens and General Electric to resolve the electricity problem in Zulia state,” she said.

The technical visit followed meetings earlier this year between Rodríguez and US officials, including Energy Secretary Chris Wright in February and Interior Secretary Doug Burgum in March, as both sides explored joint initiatives spanning oil, gas and power supply. Rodríguez has publicly urged multinational firms to invest in Venezuela.

Siemens is expected to submit a formal recovery proposal before the end of 2026. The underlying diagnosis reflects widespread instability affecting households, industrial output and crude production, with analysts noting that dependable electricity is critical for broader economic recovery.