Venezuela Braces for Worsening Utility Crisis as El Niño Threatens Power Grid

Venezuela's government is calling for increased power and water conservation as the El Niño weather pattern threatens to bring drought, a move that signals deeper utility cuts for a population already enduring severe rationing. The warning from Interim President Delcy Rodriguez comes as the nation grapples with a fragile power grid and the aftermath of recent devastating earthquakes, raising concerns about further economic disruption and social unrest.

A System on the Brink

Venezuela's electrical system is operating at a fraction of its capacity, making it acutely vulnerable to a drought that would impact its primary power source. The country's infrastructure has deteriorated after years of underinvestment and deferred maintenance.

• Available Capacity: Less than 13,000 megawatts (MW) are available from an installed capacity of 36,000 MW.
• Hydropower Dependence: The grid relies on hydropower, primarily from the Guri dam system, for over 80% of its electricity.
• Thermal Collapse: Nearly 90% of the country's thermal generation capacity is out of service, according to a report from energy expert Nelson Hernandez.

This leaves a supply shortfall of more than 1,500 MW relative to current demand, a gap authorities are struggling to manage. Jose Antonio Robles, head of the Zulia state engineers' center, told Reuters that El Niño is not the root cause but is "aggravating a long-standing deficit."

Economic and Social Fallout

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The crisis is compounding hardship for citizens and businesses, with some regions already experiencing power cuts of up to 10 hours per day. The government has ordered office buildings and malls in Caracas to shut down elevators for three hours daily, and some public offices have reduced their work week.

Business chambers warn of lower output and revenue losses if the situation worsens. "How will companies grow if there’s no certainty over the national power system’s restoration?" asked Ernesto Abbas, leader of the commerce chamber in the industrial state of Carabobo. The rationing also complicates recovery efforts in coastal areas like La Guaira, which were heavily damaged by recent earthquakes.

Government Pledges and Public Skepticism

Interim President Rodriguez has promised that up to 4,800 MW of installed capacity will be restored by the end of the year, citing new contracts with GE Vernova and IMPSA for upgrades and new turbines. However, a history of unfulfilled promises has left many Venezuelans skeptical.

The government's call for conservation has triggered fresh protests in areas where residents and businesses are already facing prolonged outages. "I can’t wrap my head around more power savings measures if we don’t have it at all," said Mariela Nunez, a resident of Valencia, to Reuters.