Venezuela could diversify its electricity mix with new solar and wind power generation, BESS systems and distributed resources close to consumption centers , in a scenario where estimates place the cost of the first two technologies at up to USD 100/MWh .
Calculations shared by Emiro Vásquez, an energy consultant , establish an approximate range of USD 45 to 100/MWh for a new photovoltaic solar plant and USD 45 to 100/MWh for new wind power projects . Hydroelectric rehabilitation would start at a lower level, between USD 25 and 60/MWh .
However, the economic differential alone does not determine which investments are most advantageous. Availability, firm capacity, quality of supply, execution time, proximity to demand, transmission, maintainability, access to spare parts, and climate resilience all influence the effective value of each alternative, especially for industrial consumers.
“ It’s not just about installing MW, but about delivering quality energy when the system and production need it ,” Vásquez stated.
For a factory or facility that operates continuously, an interruption or variations in voltage and frequency can increase the actual cost of supply , even when the chosen source initially has a lower price per MWh.
The approach thus aims to recover part of the available infrastructure and, in parallel, reduce dependence on a single technology through new capacity and decentralized solutions .
“ My position is not to replace hydroelectricity. Venezuela needs to conserve it, rehabilitate it, and complement it ,” he stated.
The discussion coincides with a particular moment for the Venezuelan market. A reform of the Organic Law of the Electric System and Service advanced in 2026 with the aim of enabling greater private and mixed participation in generation and marketing activities, opening a new window for energy infrastructure projects.
The new regulatory scenario could prove especially relevant for solar, wind, hybrid and storage installations linked to large consumers , particularly those that need to reinforce their supply without increasing the pressure on a grid with operational constraints.
More than generation: the challenge of moving electricity
The availability of resources does not guarantee that all the electricity produced can reach the consumption centers , so the transport infrastructure appears as another of the conditions for defining the expansion of the matrix.
A recent analysis published by Energía Estratégica indicates that the Lower Caroní River has nearly 10 GW of operational hydroelectric capacity , while the 765 kV transmission backbone was designed to carry around 7 GW . The difference could potentially be between 2 and 3 GW, depending on evacuation limitations .
The bottleneck highlights the need to coordinate any capacity additions with investments in transmission, distribution, control, and localized demand , so that the new MW can effectively translate into usable supply.
Among the obstacles identified by Vásquez are deferred maintenance, unavailability of units, deterioration of transmission and distribution, limitations in protection, control and supervision, lack of spare parts and technological support, and loss of specialized knowledge .
The consultant also warned about the lack of sufficiently reliable public information for planning , along with difficulties in financing, contracting, and ensuring the continuity of projects. In his view, the recovery will also require technical governance based on auditable indicators.
The state of the assets opens another discussion for investments: when it is convenient to rehabilitate existing infrastructure and in what cases developing facilities from scratch presents better technical and economic conditions .
“ It is possibly easier and more cost-effective to install new than to repair ,” Vásquez noted.
The definition does not imply abandoning available capacity, but rather individually evaluating which facilities justify rehabilitation and combining that recovery with new generation , considering costs, technical condition, component availability and expected performance.
“ Rehabilitating is progressing; but diversifying is accelerating ,” he summarized.
Solar, wind and BESS close to demand
Decentralization emerges as another component of the strategy. Bringing solar and wind power generation closer to consumption points would allow for the supply of electricity to cities, industries, oil fields, water systems, hospitals, and remote communities , while reducing some of the dependence on large production centers.
This configuration could also reduce transmission losses and facilitate the deployment of microgrids capable of temporarily operating autonomously when incidents occur on the main system.
The scheme would complement both the main grid and hydroelectric power plants and would reduce exposure to centralized failures , particularly in facilities where an interruption has direct consequences on production or the provision of essential services.
“ Energy diversity in Venezuela is fundamental, so the cost of renewable energy would not be representative of the benefit of 24/7 productivity in any industry ,” the consultant stated.
For these large consumers, the economic parameter must consider the cost of interruptions, the quality of the electricity received and the possibility of sustaining processes 24 hours a day , in addition to the direct price of generation.
Battery Energy Storage Systems (BESS) become relevant within this configuration, although their sizing and location must respond to specific operational problems and not to a generalized incorporation without a defined application.
“ BESS systems can indeed add value, but they must be installed where they solve a specific need ,” Vásquez stated.
Its potential functions include stabilizing frequency and voltage, smoothing solar and wind variations, backing up critical loads, forming microgrids, handling peak demand, and supporting black start-up .
“ Batteries do not generate energy; they store, displace, and improve the quality of available energy ,” he explained.
Because of this characteristic, the viability of each project will depend on the required duration, the consumption profile, the necessary power, the associated renewable source, and the specific function that the storage must fulfill .
The combination with photovoltaics is particularly important in installations with continuous demand, where batteries can shift part of the production to periods without radiation and offer additional services on sensitive loads.
“ In an industry that operates 24/7, the installation of BESS aligned with solar energy is fundamental ,” Vásquez stated.
This configuration would allow for increased utilization of photovoltaic generation, management of certain consumption peaks, and support for critical processes , according to the technical design and the needs of each user.
Five actions to organize investments
Based on this diagnosis, Vásquez defined five priority lines to strengthen the Venezuelan system and generate conditions to incorporate new infrastructure in an orderly manner.
The first step involves conducting an independent and auditable technical diagnosis of generation, transmission and distribution , which will determine the actual state of the assets, their availability and the main points that require intervention.
The second plan contemplates the recovery of hydroelectric, thermoelectric and wind power capacity through maintenance and rehabilitation , prioritizing those facilities where the intervention is technically and economically justifiable.
The third front focuses on modernizing transmission, protection, control, measurement and Supervisory Control and Data Acquisition (SCADA) systems , components necessary to increase operational visibility and manage a network with greater participation of variable and decentralized resources.
As a fourth action, the consultant proposes to promote solar, wind and BESS pilot projects near industrial loads, essential services and vulnerable areas , with the aim of evaluating their performance under local conditions before moving towards larger-scale deployments.
The fifth line requires a stable framework for investment, transparent contracting, technical training and monitoring through indicators of availability, reliability, quality and cost .
Regulatory liberalization toward private actors could contribute to this agenda. The electricity reform discussed during 2026 includes mechanisms to allow greater participation of private capital and joint ventures, while energy-intensive industries could become one of the primary sources of demand for new developments .
For renewable energy developers and storage providers, this scenario could generate opportunities in generation aimed at large consumers, self-consumption, microgrids and hybrid configurations , although the effective scope will depend on how the new regulatory scheme is implemented.
In parallel, the existence of between 2 and 3 GW of hydroelectric power potentially conditioned by transmission capacity reinforces the need to coordinate investments in generation with networks and demand close to the producing centers.
The estimated ranges of USD 45 to 100/MWh for solar and new wind power , compared to USD 25 to 60/MWh for hydroelectric rehabilitation , thus constitute an initial reference for evaluating projects, but must be analyzed together with the effective availability that each solution can offer.
The final decision will depend on the location of the assets, evacuation capacity, consumer continuity requirements, necessary storage, and the condition of the facilities that can be rehabilitated .
“ Of course cost matters, but for a country and for any industry, reliability, quality, and continuity of energy can be even more important ,” Vásquez emphasized.
Under this approach, the recovery of existing infrastructure, the incorporation of renewables, energy storage, and grid modernization are all part of the same strategy. “ The solution lies in a diversified, maintainable, and resilient energy mix ,” the consultant concluded.