Venezuela is beginning to move two key pieces of its energy chessboard: the opening of the electricity market to private capital and the requirement of electricity self-sufficiency for new oil and gas operations.
The debate is taking place in a critical context. The country's electricity demand exceeded 15,000 MW in May , according to the Minister of Electric Power, Rolando Alcalá, while the system faces a generation deficit of around 2,000 MW , equivalent to the consumption of the entire Greater Caracas metropolitan area.
The main cause is the unavailability of thermoelectric units due to breakdowns, lack of maintenance, and fuel shortages. This is compounded by an electrical infrastructure with significant technical and non-technical losses, deteriorating networks, metering problems, and a high dependence on hydroelectric power.
In that scenario, the National Assembly approved in first discussion the partial reform of the Organic Law of the Electric System and Service , which opens the door to private and mixed participation in generation, transmission, distribution and marketing , after years of state monopoly exercised through Corpoelec.
But the most significant development for the renewable energy market could come from the oil sector.
The new hydrocarbon regulations would require international energy companies developing projects in Venezuela to bring or install their own power plants to operate oil and natural gas assets without relying on a grid with frequent blackouts.
The signal is clear: oil growth can no longer rely entirely on the National Electric System. And this constraint opens a window for dedicated generation solutions, including solar and wind hybrids, battery storage, and efficient backup thermal power plants.
An electrical system with deficits and structural losses
According to data shared by industry specialists, Venezuela's estimated peak electricity demand is around 14,500 MW, met approximately 75% by hydroelectric sources, about 25% by thermoelectric plants, and less than 0.5% by solar and wind sources.
The problem is not just one of installed capacity, but of actual availability.
The thermoelectric power plant is experiencing significant unavailability, especially in the western, central and southwestern parts of the country, while system losses are reaching critical levels.
According to expert Alexis Barroso 's analysis, around 40% of the electricity generated in Venezuela is lost due to a combination of technical losses, energy theft, lack of billing, lack of metering, and management failures.
This deterioration explains the recurring rationing: demand cannot be met in a stable manner.
The situation directly affects households, but also industrial and oil operations, which require firm energy, stable frequency and permanent availability.
Why the oil industry could become a next-generation consumer
Oil extraction is increasingly dependent on electrical power.
In particular, the production of heavy and extra-heavy crude oil in the Orinoco Belt requires pumping, artificial lift, treatment, transportation, and processing. Each increase in production implies new associated electricity demand.
According to technical estimates shared in the analysis of the Venezuelan electrical system, producing heavy and extra-heavy crude may require around 152 MW for every additional 100,000 barrels per day, considering not only the wellhead or well, but also associated transportation and processing.
In the case of light and medium crudes, the requirement would be lower, with references close to 50 MW per 100,000 barrels per day.
This makes the link between oil and electricity strategic: if Venezuela seeks to recover oil production, it will need to figure out how to supply electricity to these new developments without deepening the crisis of the National Electric System (SEN).
Oil companies that may need their own energy
The new framework opens up opportunities for companies with activity or potential expansion in oil and gas.
Chevron emerges as one of the most significant players due to its presence in Petropiar, Ayacucho 8, and other PDVSA-linked assets in the Orinoco Oil Belt. Its operations may require energy for pumping, upgrading, well clusters, treatment, transportation, and production expansion.
Shell could face demand related to assets such as Carito, Pirital, Monagas Norte, and gas or offshore projects. In these cases, energy is key for production, compression, capturing vented gas, and processing infrastructure.
Repsol has exposure in Petroquiriquire and Cardón IV together with Eni, with requirements associated with oil and gas production, compression, linked plants and energy security for the operation.
Eni, through Cardón IV / Perla, could demand energy for gas destined for the domestic market, eventual regional export, liquids, compression and treatment.
Maurel & Prom, in Urdaneta Oeste, may require energy for field development, pumping, production recovery and expansion.
BP, together with NGC Trinidad, in the Manakin-Cocuina project, appears as another potential case, especially due to the need for energy for cross-border gas, compression, offshore/onshore operations and processing.
Added to this are PDVSA and its refineries, such as Paraguaná and El Palito, where refineries, upgraders and pumping systems are large electricity consumers.
Oilfield services companies —SLB, Halliburton, Baker Hughes and Weatherford— could also increase energy demand due to the reactivation of drilling, pumps, compression, workovers and auxiliary infrastructure.
Solar, wind and storage: what opportunity arises
The requirement to operate off-grid or with self-generation can open up three types of opportunities.
The first is photovoltaic solar energy for self-generation in the oil, industrial, and commercial sectors. In fields, pumping stations, auxiliary facilities, camps, operational bases, and for daytime consumption, solar energy can reduce grid demand and displace some fuel consumption.
The second is wind power, especially in areas with favorable resources such as Zulia, Falcón, and coastal or island regions. Venezuela has a history of wind power projects, although many were left unfinished or without reliable operation.
The third is battery storage, which can be key to stabilizing microgrids, sustaining critical loads, reducing the use of generator sets and improving the quality of supply in sensitive operations.
For oil and gas, the challenge is not just generating cheap energy. It's ensuring continuity, stability, and operational safety.
There, hybrid systems —solar, wind, batteries and thermal backup— may make more sense than isolated renewable solutions.
Renewable background: little development and plenty of available space
Venezuela has a history of renewable energy, but it is still marginal compared to the size of its electrical system.
In solar energy, projects identified include the Nestlé Venezuela solar park in Santa Cruz, Aragua, geared towards industrial self-generation; the Mérida photovoltaic farm, described by journalistic sources as one of the first public solar projects; and advertisements in El Vigía / Don Luis Zambrano, with capacities mentioned between 50 MW and 52.8 MW, linked to cooperation with Chinese companies.
There is also the case of Los Roques, with an island solar project of 1.1 MW, and small microgrids such as that of the Venezuelan American Center of Margarita.
In wind power, the most relevant precedents are the La Guajira Wind Farm, in Zulia, with an initial phase of 25.2 MW and a later phase that was cancelled, and the Paraguaná Wind Farm, in Falcón, with historical references close to 30 MW.
Both appear as assets that are paralyzed or without verifiable reliable operation.
This shows that Venezuela is not starting from scratch in terms of renewables, but rather from an extremely low base. Less than 0.5% of its electricity mix would come from solar and wind sources.
The bottleneck: tariffs, financing, and ability to pay
Opening up the electricity market does not in itself guarantee an immediate wave of private investment.
One of the main obstacles is the electricity tariff. With low or subsidized prices, the repayment of private generation projects may not be attractive if the model depends solely on selling energy to the grid.
Therefore, the first realistic market could be in customers with critical energy needs: oil companies, gas companies, refineries, industries, hotels, agribusiness, isolated areas and large consumers who value continuity of supply above the regulated price.
In other words, the business will not necessarily start with merchant energy sales to the grid, but with private contracts, dedicated generation, microgrids, self-generation, and behind-the-meter solutions.
Two companies are already analyzing the thermal park
Alongside the renewable energy discussion, the market is also looking at the state of the thermoelectric power plant.
Companies such as Siemens and General Electric are mentioned in the sector analysis as actors that could evaluate or participate in the recovery of thermal infrastructure, although under a logic more linked to supply, construction, rehabilitation or equipment than to direct capital investment.
This point is relevant because the Venezuelan solution will not only be renewable.
The country needs to restore thermal power availability, reduce losses, improve grids, stabilize frequency, modernize operations, and add new localized generation. Solar, wind, and batteries can be part of that solution, but they will coexist with conventional generation and the rehabilitation of existing assets.
Electric openings can change the business landscape
The reform of the Organic Law of the Electric System and Service seeks to diversify actors in generation, transmission, distribution and marketing under a regime of concessions, public supervision and civil and criminal co-responsibility.
If fully approved, it could mark the most important change in the Venezuelan electricity sector since the consolidation of the state monopoly with Corpoelec.
The Executive's interest seems geared towards allowing private and mixed capital, both national and international, to modernize infrastructure and alleviate the burden on the State.
But the most dynamic sector could be oil. Companies looking to expand production will need reliable power and probably cannot wait for a full recovery of the national electricity grid.
There you'll find space for renewable developers, battery suppliers, EPC contractors, inverter manufacturers, microgrid integrators, thermal power companies, and engineering firms.
Where to look for business opportunities
For commercial monitoring, the most relevant focuses are PDVSA, Corpoelec, the governments of Mérida, Falcón and Zulia, Nestlé Venezuela, Chinese companies linked to solar projects in Mérida, local solar installers and oil companies with operations in Monagas, Orinoco Belt, Zulia and Paraguaná.
It is also advisable to monitor Chevron, Repsol, Eni, Shell, Maurel & Prom, BP, NGC Trinidad and oilfield services companies such as SLB, Halliburton, Baker Hughes and Weatherford.
The demand will come not only from new power plants, but also from specific operational needs: pumping, compression, treatment, upgraders, refineries, drilling, workovers, camps, remote stations and backup power in case of blackouts.
Conclusion: Oil can open the door to renewables
The Venezuelan paradox is clear: oil recovery can be one of the factors that drives new opportunities for solar, wind and storage.
The electricity grid does not have sufficient capacity to absorb all the additional demand for oil and gas without significant investment. Therefore, new regulations requiring energy companies to generate their own electricity could create a specific market for private solutions.
In a system with a generation deficit, high levels of losses, a deteriorated thermal park, and low renewable participation, the opportunity is not only in large parks connected to the grid.
It is in localized generation, renewable hybrids, batteries, industrial self-generation and dedicated energy solutions for critical operations.
If regulatory liberalization progresses and oil companies are effectively required to guarantee their own supply, Venezuela could become an emerging market for renewables driven not by a climate agenda, but by an operational need: to produce oil and gas without depending on an unstable electricity grid.