The Venezuela power market is expected to grow at a CAGR of more than 6.92% during the forecast period 2020 - 2025. With a growing population, the demand for power is increasing tremendously. Adding to this, factors such as rapid urbanization, technical advancement, and industrialization is increasing the demand for electricity. With the acceptance of renewable energy sources, a robust grid development is required, which is expanding the distribution and transmission sector of the power market. On the other hand, considerable high investments required in upgrading and developing new generation transmission or distribution networks are hindering the growth of the power market in Venezuela.
- Wind energy with a share of more than 45% in 2019, is the cheapest power generation technology and one of the major clean power generation technologies is one of the significant energy generation sources.
- The Venezuela Plan for the National Electric System aims to integrate renewables in the power system by including it in medium and long-term strategies. It aims to develop the use of renewables within isolated rural communities
- The future development of the solar energy sector in Venezuela with the growth of energy consumption and substitution of fossil fuels by renewable energy potential is likely to promote the solar energy market in Venezuela. Moreover, efforts to decrease the emission of greenhouse gases is also expected to provide opportunities for growth in the coming future.
Key Market Trends
Wind Potential to Dominate the Market
- As demand for energy is rising, Venezuela is turning toward the adoption of renewable energy as it has the ability to provide clean energy. The adoption of wind energy with advanced technology gradually makes wind energy a dominant type.
- The Paraguaná Wind Farm (PEP) began a new phase of operations in 2019 aiming at the regional electric strengthening with its own workforce that has reactivated the production of 14 wind turbines, under the responsibility of Petróleos de Venezuela (Pdvsa), Paraguaná Refining Center (CRP).
- At the end of 2019, Venezuela holds 71.28 MW of installed wind capacity much higher capacity compared to the solar PV installed capacity as of 2019. Venezuela is also planning to build wind farms with a generating capacity of 10,000 MW over the next 15 years.
- Venezuela has great potential to use power from wind energy and this, in turn, is expected to hinder the growth of the solar energy market during the forecast period.
Hydro-Power Generation to Drive the Market
- The market for hydropower in Venezuela is huge and accounts for most of the electricity production in the country. Hydropower accounted for around 72% of the total power generation mix in 2019 in Venezuela. In terms of renewable power generation, hydropower is the only source that has been utilized until now for power generation.
- The Guri hydroelectric power plant, also known as Simón Bolívar hydroelectric power station and Raul Leoni Hydroelectric Central, is situated 100km upstream of the Caroni River in Necuima Canyon in Orinoco, Venezuela.
- The power plant has an installed capacity of 10,200MW and is one of the biggest power plants in the world. The plant provides approximately 50,000GW/h of energy to the country annually.
- To support the demand for power generation, Venezuela hydropower plant planning to expand the electricity generation and hence promulgate the Venezuela power market.
Venezuela power market is moderately fragmented. Some of the key players are Companhia Energetica de Sao Paulo, Andritz AG, NK Rosneft PAO, Petroleos de Venezuela SA, Vestas Wind Systems A/S.
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