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Venezuela faces rapid electricity demand growth, combined with serious under-investment in its power sector, which hasresultedinshortagesandaneedforprivateinvestment (an estimated $5.7 billion over the next five years in transmissionanddistributionalone). Hydroelectric’sshare of power generation is expected to grow as Venezuela adds about 8 GWe over the next five to ten years. With hydropower potential estimated at 70 to 80 GWe or more, Venezuela has plans for several additional plants. Venezuelahastakeninitialstepstowardprivatizingand reorganizing its state-owned power sector companies but theprocesshasbeendelayedseveraltimes.The Government of Venezuela (GOV) will privatize thermal generation facilities, electricity distribution companies, and small-scale transmission (115 kV or lower voltage). The GOV has begun the privatization of several large electric utilities to modernize and improve the reliability of itselectricsystem. Toattractprivatesectorinvestment, the government has taken steps towards reforming the legal frameworkwhichgovernsitssector. Accordingtoarecent Duff & Phelps report, many large industrial customers are facing high electricity costs with poor quality and reliability due to the lack of capital investment and maintenance. The Electric Power Management and Development Company (CADAFE) has undertaken several renewable rural electrification programs, focusing on potential markets in large rural areas that are not attractive to the privatepowerindustry. Providingelectricservicesto 100% of towns having more than 1,000 inhabitants, CADAFEhasbeenabletoextendserviceto90%ofthe national territory (Lawrence, 1998). Hugo Chávez, a populist who was imprisoned for an unsuccessful military coup attempt in 1992, was elected president in December 1998 and sworn in on February 2, 1999. Hehasproposedtoredraftthecountry’s1961 constitution through a popular convention or constituent assembly. Thismayallowhimtoundertakelongoverdue economic reforms. Government / Legislation Ministry of Energy And Mines TheGOVwillretainresponsibilityforthemajor hydroelectric generation facilities of the Caroni, the nationaltransmissiongrid,andallregulatoryactivities, including the design of guidelines and regulations for the industry and the monitoring of the performance of the electric utilities. Geothermal Resources in Latin America & the Caribbean 181PDF Image | Geothermal Resources in the Caribbean and Latin America
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