Venezuela: The Disconnected Energy Giant. The Organic Law of the Electric System (June 2026)

Decades of collapse, new investment agreements, and the potential to create tens of thousands of jobs in power generation

Venezuela has 36,000 MW of nominal installed capacity and the world's largest certified oil reserves. Yet 90% of its households suffer recurring power outages. On September 2, 2026, five multinational companies signed agreements in Miraflores that could rewrite that story. The question is not whether the potential exists — it does, and it is enormous — but how many real jobs its reactivation can generate.

By: Paulo Peña  |  EnergyInPower Editorial  |  September 6, 2026 

Sources: Bloomberg Línea · Al Jazeera · Energy News Beat · CORPOELEC · ARCE

The collapse: a system delivering 1 in every 3 MW

The National Electric System (SEN) has 36,000 MW installed “on paper”. It delivers only ~12,500 MW, barely one third. Peak historical demand reached 15,579 MW in May 2026, leaving a structural deficit of 2,500–3,000 MW during peak hours.

Why did it collapse?

▸ Thermoelectric plants without maintenance for 20 years → operating at 10% of capacity.

▸ Guri Dam (10,000 MW, 60% of national generation) with no investment in turbines or control systems.

▸ Brain drain: lack of technical talent due to emigration.

▸ No foreign currency for spare parts and critical imports over two decades.

September 2, 2026: agreements that change the landscape

In the presence of U.S. Energy Secretary Chris Wright, Venezuela signed eight contracts with global energy giants at the Miraflores Palace. The one with the greatest structural impact on the power sector: GE Vernova.

GE Vernova will begin with the rehabilitation of Guri Dam — the backbone of the national grid — to recover stalled turbines and modernize control systems. Director Roger Martella confirmed: +1 gigawatt of reliable energy within 24 months, +5 additional GW over the following four to five years, with the hiring of more than 1,000 Venezuelan workers for specialized technical training.

Renewable potential: vast resources, almost untapped

The Organic Law of the Electric System (June 2026) formally opened the sector to private investment, eliminating the state monopoly in place since 2007. It is the most significant regulatory change in nearly 20 years.

How many jobs can power sector reactivation create?

If the agreements signed on September 2 materialize between 2026 and 2031, Venezuela's power sector could generate an unprecedented wave of employment. Estimate by category:

Conclusions

• The potential is real and the September 2 agreements represent the most significant opening in two decades.

• Critical risk factors every investor must weigh. Rule of law: without a stable legal framework, private capital demands extraordinary guarantees.

• Turning paper megawatts into real jobs depends on sustained regulatory reform, respect for contracts and, above all, retaining, or repatriating, the talent that left. Without human capital, no rehabilitation is possible.