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The collapse of Venezuela's electricity sector from an energy governance perspective

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  • León-Vielma, J.E.
  • Ramos-Real, F.J.
  • Hernández Hernández, J.F.

Abstract

This paper analyzes the historical evolution of the Venezuelan Electricity Sector (VES) from the 1940s to the present. The objective is to identify the causes that have led to the current chaotic situation in power supply and propose corrective measures. This analysis is conducted within the framework of the literature on energy governance and extractivism in Latin America (LA). The VES has been conditioned upon the general objectives of energy policy in Venezuela. What has been called extractivism in the 20th century has been prolonged with the neo-extractivism of the 21st century. The country's oil revenues allowed for a highly interventionist energy governance policy, which was implemented hierarchically without the participation of VES stakeholders. On the other hand, the lack of market mechanisms and company financing schemes have led to inefficiencies in the operations of the sector. Finally, the lack of stable regulation, political uncertainty, and the absence of control mechanisms have contributed to the collapse. Due to the importance of electricity for the stability of Venezuela, it is necessary to propose a new and more participative energy governance strategy which also entails to rethink the VES structure and regulation.

Suggested Citation

  • León-Vielma, J.E. & Ramos-Real, F.J. & Hernández Hernández, J.F., 2022. "The collapse of Venezuela's electricity sector from an energy governance perspective," Energy Policy, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:enepol:v:167:y:2022:i:c:s0301421522002348
    DOI: 10.1016/j.enpol.2022.113009
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    Cited by:

    1. León-Vielma, J.E. & Ramos-Real, F.J. & Hernández Hernández, J.F. & Rodríguez-Brito, María Gracia, 2023. "An integrative strategy for Venezuela's electricity sector (VES), from an analysis of stakeholder perspectives," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    2. Henry Aray & David Vera, 2023. "A Tale of Oil Production Collapse," ThE Papers 23/10, Department of Economic Theory and Economic History of the University of Granada..

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    More about this item

    Keywords

    Venezuela; Electricity; Energy governance; Extractivism; Oil revenues;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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