Venezuela relies heavily on domestic production of fossil fuels, with oil and natural gas comprising approximately 90% of the country's total energy supply. Hydro power also plays a key role in electricity generation, accounting for roughly half of installed capacity.
Note: Another article to be published soon will focus on the organization of the national electricity system and its regulatory framework. Venezuela has the world’s largest oil reserves and holds the 8th place in natural gas reserves (OPEC, 2017). It is also a net energy exporter with crude oil counting for more than 80% of the energy exports.
In this sense, Corpoelec has the opportunity to shape the future of the electricity sector in Venezuela by assuming an active role in the energy transition journey, rather than being a passive passenger.
EDC has 11% of Venezuelan capacity, and owns the majority of conventional thermal power plants. The rest of the power production is owned by private companies.
The energy sector in Venezuela has fallen into a phase of stagnation – or regression – due to the mismanagement of resources and an intense policy of subsidies with political aim. As a result, in 2014 the country reported to have a fiscal breakeven point of more than 100 $/bbl (Black gold deficits, 2014), one of the highest in the world.
The Venezuelan electricity system has been designed so the main hydropower plants are located in the southern part of the country, taking advantage of multiple rivers and water reservoirs. Whereas, the thermal power plants are located throughout the whole country.