Venezuela Signs Agreements with INSA and General Electric to Add 7,400 MW Over Four Years

Rodríguez disclosed that INSA will complete the long-stalled Tocoma hydroelectric dam, a project that consumed approximately $9 billion before being abandoned by the Chavista government despite nearing completion. The original budget tripled during construction, representing one of Venezuela’s most significant infrastructure failures. Under the new agreement, INSA will transfer turbines already manufactured in Russia to add more than 2,000 MW at Tocoma. The Russian company will also optimize the Macagua power station, reinforcing the entire Bajo Caroní hydroelectric complex to reach a combined total of 2,400 MW recovered capacity.

The General Electric Vernova agreement, signed June 15, establishes a progressive four-year plan targeting 5,000 MW of recovered generation capacity. The first phase aims to restore 1,000 MW within 24 months, with the remaining 4,000 MW to be completed in the subsequent two years. Rodríguez characterized the electrical service as the cornerstone of national infrastructure, noting its critical role in water supply, healthcare, education, food production, and agroindustry.

The combined 7,400 MW target addresses Venezuela’s persistent power crisis, which has plagued the country since 2006 with regular blackouts and rationing. The acting president emphasized that having available megawatts for economic growth represents significant progress for the Venezuelan population. INSA, originally an Argentine firm that went bankrupt before acquisition by a US investment fund, brings experience in hydroelectric development to the Tocoma completion effort.

The agreements mark a shift toward international partnerships in Venezuela’s energy sector, combining Russian manufacturing capabilities with American technical expertise. Rodríguez described the INSA signing as historic given the project’s troubled past and the scale of investment losses. The progressive implementation structure suggests phased capital deployment rather than immediate large-scale investment, potentially reflecting financing constraints or technical staging requirements for integrating new capacity into Venezuela’s degraded national grid system.