In a meeting held by potential providers and financiers for Venezuela's electric industry, including Siemens Energy and GE Vernova, the question of how to get paid to shore up the country's deteriorated grid was the main concern.
Securing stable electricity is among interim President Delcy Rodriguez's top priorities since she replaced deposed President Nicolas Maduro in January, but the cash-strapped country has so far failed to guarantee timely payments to suppliers that would help key industries - like its oil-and-gas sector - recover.
Less than 40% of Venezuela's power generation capacity is currently available, causing frequent blackouts and constraining manufacturing output. The country's thermal plants were expanded under Hugo Chávez up to 2013, but left behind large unpaid debts to contractors, some of whom are now being asked to return funds.
Uncertainty over which projects will be prioritised, along with supply needs for transmission and plant repairs, is delaying recovery efforts. Combined with unclear payment guarantees and regulatory approvals from both Washington and Caracas, investment is expected to remain stalled.
Venezuela's communication ministry, state utility Corpoelec, and state-run oil company PDVSA did not reply to requests for comment.
No Payment Solutions In Sight
Following the April meetings with foreign executives, Rodriguez's government approached firms including Siemens Energy, GE Vernova and Mitsubishi Power about repairing the grid.
Siemens Energy and GE Vernova said they held meetings with Venezuelan officials, with GE noting it is 'motivated to meet the moment' in supporting the country.
Of Venezuela's 36,000 MW installed capacity, less than 13,000 MW is currently available, with fuel-powered plants operating at just about 13% of capacity, according to independent data.
However, uncertainty over project priorities, payment guarantees, and approval from both Washington and Caracas is slowing investment. Past unpaid debts, sanctions, and rejected proposals for prepaid contracts or Treasury-linked payments have further complicated financing.
Lengthening Blackouts And Rationing
Power shortages are severely affecting Venezuela's oil and gas sector, including the Paraguana Refining Center, where blackouts have disrupted fuel production and caused long queues.
Experts say at least $15 billion is needed over three years to stabilise the grid, while PDVSA is reviewing repair needs but remains wary of offering credit after past losses.
Frequent outages, infrastructure decay, and theft have worsened the crisis, while investment remains limited due to payment and legal uncertainties.
Residents continue to endure daily power cuts of up to 10 hours, with basic services increasingly disrupted.
(With inputs from Reuters)