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Energy crisis in Venezuela

Venezuela has experienced a marked deficit in the generation of electrical energy. The immediate cause of the energy crisis was a prolonged drought that caused the water in the reservoir of the Simón Bolívar Hydroelectric Plant to reach very low levels. Although various measures were taken to overcome the crisis, one of the most controversial was the implementation of a program of electrical rationing throughout the country, except in the capital Caracas, which was ultimately officially suspended in June 2010, due to the recovery of reservoirs due to the rains, and not to interrupt the transmission of the 2010 FIFA World Cup. Power cuts have continued to occur in the interior of the country, although with less frequency and duration, this time driven by failures in other parts of the system. The situation of "electrical emergency" decreed by the government on 21 December 2009 was suspended on 30 November 2010; however, on 14 May 2011, after the country experienced two national blackouts, the government of Hugo Chávez announced a temporary rationing plan and acknowledged that the electricity system continued to face "generation weaknesses" that they did not expect to surpass until end the year.

Causes and characteristics
Venezuela, the main oil exporter in South America, suffered from a long drought that significantly reduced the volume of water in the dams of hydroelectric plants. For 2009, 73% of the electric energy consumed by Venezuelans depended on these plants. Additionally, the country's electricity consumption has been increasing by 6% per year, a percentage that exceeds the growth rate in the electrical supply that has been installed. Most of Venezuela's power comes from one of the largest hydroelectric dams in the world, Guri Dam in Bolívar State, Venezuela on the Caroni River; as of 2019, 70–80% of Venezuela's power comes from Guri. Venezuela has a history of electrical blackouts dating at least to 2010; Juan Nagel wrote in Foreign Policy in 2016 that the problems resulted from "massive government corruption [...] and the country’s disastrous energy policies". Univision also reported that the problems in the energy sector resulted from corruption and "lack of maintenance and investment". The private company, Electricidad de Caracas was owned by the United States' AES Corporation until 2007; according to The Wall Street Journal, "Venezuela's power grid was once the envy of Latin America". and by the beginning of February 2010, the level of the dam had dropped nine meters below its optimum level. If the level of the Guri reservoir falls below 240 masl, some turbines in the plant could not work, and the country's electricity supply would decrease. The government foresaw that if nothing were done, this level would be reached in May 2010, so it began to execute a series of measures that seek to reduce electricity demand and minimize Venezuela's dependence on hydroelectric power plants. By the end of March 2010, this date had been postponed to June 2010. On 9 March, Chávez was more emphatic about it, declaring: Subsequently, on 18 March, the Minister of Electric Power, Alí Rodríguez Araque, accused the Venezuelan opposition of causing fear in the population by talking about a "collapse." On 23 April, the Minister of the Environment, Alejandro Hitcher, assured that the Guri would reach a normal growth rate within fifteen or twenty days. However, according to Miguel Lara, former general manager of the Interconnected Systems Operation Office, the crisis continued due to problems in the thermal generation park and transmission lines, although he recognized that it is unlikely that the Guri will collapse. Thermal park deficiency The National Electric Corporation, the public body that manages all electricity generating companies, acknowledged that by the end of 2008, 79% of thermoelectric plants were more than 20 years old, and that 30% were unavailable due to technical problems. In addition, of the plants that were working, many did not do so at full capacity: 3,800 MW were generated, when the installed capacity was 9,051 MW. Although the funds to reactivate an additional unit were delivered months before, for the start of the crisis the work was 21 months behind. Subsequently, on 27 March, a unit was stopped for maintenance. By the beginning of April 2010, Planta Centro operates only with a unit of 400 MW, which is only generating 250 MW. Electrical specialists believe that Planta Centro is unlikely to recover in the short term, claiming lack of maintenance in recent years as the main cause. According to figures from the Office of Operation of Interconnected Systems, the Chávez government completed less than half of the investments in thermoelectric energy generation planned in 2005. Alí Rodríguez has denied that the government has not made the necessary investments, although he acknowledged that there are delays in the execution of projects. Due to the distribution of the fault, Ciro Portillo, former vice president of Enelven, has assured that it is due to overload in one of the three transmission lines that start from the Guri. The company Enelven, responsible for the affected areas, has not reported on the causes of this energy slump. For its part, the National Management Center has reported that Cadafe-Occidente overloads transmission lines daily. ==Responses==
Responses
Investments In 2009, the Chávez administration declared a national electric emergency and invested $100 billion US dollars towards solving it. The Chávez administration "distributed million-dollar contracts without bidding that enriched high officials of his government and the works were never built", according to Univision. Installation of thermoelectric plants President Chávez set a goal of installing 6,000 MW in 2010 through thermoelectric plants, Rationing in Caracas Initially, an electric rationing plan was implemented in Caracas, the Venezuelan capital, but it was suspended days later amid protests, which also led to the departure of then-Minister of Electric Energy Ángel Rodríguez, who was replaced by Rodríguez Araque. According to the director of the Chamber of Commerce of Caracas, this last measure was an attempt by the government to "blame the companies for the crisis". However, the results were not as expected; between January and February, a reduction in demand of 3% was experienced, while the goal set by President Chávez was 20%. In this case, rationing would be accentuated in the Venezuelan territory corresponding the Guiana Shield, eastern Venezuela, and the Central-Falcón zone. At the end of April, Corpoelec ordered greater rationing, this time without prior notice and at night. Blackouts due to this cause have been reported in the states of Aragua, Anzoátegui, Mérida, Sucre, Táchira and Zulia. Reduction of activities in basic industries SIDOR's basic industries in Venezuela's side of the Guiana Shield have been hit hard by the crisis, whose production had already fallen by 40% in December 2009, after the Electricity Ministry set a 300 MW consumption limit; before the crisis, SIDOR consumed 800 MW. By February 2010, SIDOR operated at only 45% of its capacity, and 30,000 tons of metal billets were imported to Brazil to meet national demand. ==Official suspension of rationing and new blackouts==
Official suspension of rationing and new blackouts
On 22 May, the Venezuelan government announced the suspension of rationing on weekends and holidays, and off peak hours throughout the country. Rationing would then be maintained only on weekdays during peak hours, due to the partial recovery of the reservoirs thanks to the arrival of rains and the inauguration of some electrical works. In addition, the state of electrical emergency would be maintained, as well as the rationing schedule in the public offices, at least until 30 July 2010. Chávez also acknowledged that the production of the basic companies of Guayana "went to the ground, but the worst is over". The suspension of rationing was carried out due to the recovery of the reservoirs for the rains and not to interrupt the transmission of the 2010 FIFA World Cup. However, there has also been recognition of inefficiency on the part of the government: ==Consequences==
Consequences
Venezuela presented a GDP contraction of 3.3% in 2009, leading the energy crisis to prolong the recession in 2010. Additionally, the transfer of power generation from hydroelectric to thermoelectric increased domestic consumption of petroleum products and natural gas, causing a drop in Venezuelan exports, that had already experienced a 17% drop in 2009. For his part, Chávez accused the opposition of seeking political gains from the energy crisis. ==See also==
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