Venezuela Signs Deal With US Energy Giant to Rebuild Power Grid

Tue Jun 16 2026 21:25:58 GMT+0000 (Coordinated Universal Time)

Venezuela’s interim president signs a partnership with General Electric to overhaul the electricity network amid longstanding outages and a broader political shift.

Venezuela’s new interim administration has secured a partnership with U.S. energy giant General Electric to perform critical repairs and upgrade the nation’s power grid. The deal signals a pivot toward inviting foreign investment after months of economic isolation. With the grid suffering decades of neglect and frequent power cuts lasting up to ten hours, the project is seen as a vital step toward restoring essential services. While critics argue that political reforms remain limited, the agreement provides a financial injection that could help stabilize the energy sector and support broader economic recovery.

Venezuela signs deal with US energy giant to rebuild power grid

Delcy Rodríguez, the interim president who assumed office after the U.S.‑led overthrow of Nicolás Maduro, unveiled a landmark agreement with General Electric (GE) to refurbish and expand Venezuela’s deteriorating electrical infrastructure. The contract, signed at the presidential palace, will channel U.S. capital and technical expertise into repairing hectares of damaged transmission lines, upgrading power stations and modernising distribution networks that have long suffered from chronic outages.

Power lines outside a prominently displayed billboard calling for the release of former Venezuelan president Nicolás Maduro and his wife Cilia Flores — Juan BARRETO / AFP via Getty Images

The initiative follows a series of crises that have pushed Venezuela’s power grid into a near‑collapse: decades of under‑investment, an aging hydroelectric reservoir, and a spike in energy consumption. Energy Minister Rolando Alcalá, an electrical engineer newly appointed by Rodríguez, will spearhead the project, aiming to meet national demand and lift the country’s electricity reliability to international standards.

Observers note that while the agreement represents a concrete opening to foreign investment, many of the political institutions remain dominated by the previous regime. Nonetheless, the deal is touted as a historic step toward restoring a critical public service and signaling a broader shift in Venezuela’s economic posture.