The Chinese company China Machinery Engineering Corp. plans to commission a 600 MW power unit at Venezuela’s Planta Centro power plant next month. The facility has been largely out of operation since 2021. Restoring the site’s operations is expected to help address the country’s prolonged power outages. Bloomberg reports, UNN writes.
Details
According to the publication’s sources, the company plans to commission the plant’s sixth power unit, which runs on fuel oil. This will restore about 25% of the complex’s former capacity. Fuel for the generator will be supplied by the state-owned oil company Petroleos de Venezuela SA.
The Planta Centro power plant is located approximately 135 km west of Caracas, in the state of Carabobo. Construction of the complex began about 50 years ago, and at one time it supplied electricity to Venezuela’s capital. If fully commissioned, all six power units will be able to generate more than 2,500 MW of electricity.
The plant has been largely out of operation since 2021 due to equipment failures, wear and tear, fuel shortages, and other problems. The Chinese company is working to restore it under a contract concluded around 2010, during the presidency of Hugo Chávez.
Venezuela’s energy crisis
Venezuela’s power system is suffering from years of underfunding and inadequate maintenance. The situation is being compounded by economic problems and U.S. sanctions. According to the Venezuelan Observatory of Social Conflict, 531 protests over power outages were recorded in the country in September—more than 20 times as many as during the same period last year.
According to BloombergNEF estimates, Venezuela theoretically has generating capacity to produce about 37,000 MW of electricity, approximately half of which comes from hydropower plants. At the same time, many facilities are in a dilapidated condition, and equipment from some power units is being used to repair others.
Other international companies are also working to restore the energy infrastructure. In particular, GE Vernova signed a preliminary agreement with Venezuela in June to repair the power system, but the work has slowed due to negotiations and delays in equipment deliveries. The Argentine company Impsa is repairing the Tocoma hydroelectric plant on the Caroní River.
Restoring electricity supplies is particularly important for the oil industry, which is the backbone of Venezuela’s economy and depends heavily on the stable operation of the power system.
At the same time, the Chinese company’s involvement in restoring Planta Centro indicates that China’s economic presence in Venezuela is being maintained despite statements by the administration of U.S. President Donald Trump about its intention to reduce Beijing’s influence in the country.
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