Report Published: "Venezuela Power Report Q4 2015"

From: Fast Market Research, Inc.
Published: Fri Sep 11 2015

This quarter we have upwardly revised our forecast for Venezuela's thermal power generating capacity in 2015, on the back of the completion of maintenance works on existing plants. That said, we continued to believe that Venezuela's power market will continue to suffer from severe infrastructure inefficiencies and unreliable electricity supply over our 10-year forecast period to 2024, as lower oil export revenues will constrain public investment in the power sector. Given the high dependence of the market on public spending, a cut in the 2015 budget for Venezuela's power ministry supports our view and increases the risk of power shortages for the country's downstream oil sector. The development of Venezuela's power sector will therefore remain reliant on Chinese financing.

Over the past year, Venezuela's power market has swelled in terms of capacity. For instance, according to a report from BNamericas, 1.07 gigawatts (GW) have been brought online since Energy Minister Jesse Chacon announced an energy short-term plan at the beginning of May 2013, after President Nicolas Maduro declared a state of emergency for the power sector in April 2013.

Full Report Details at

This notwithstanding, our grim outlook for the Venezuelan power sector remains. In order to meet demand, which averages between 17GW and 18GW, Venezuela has an installed capacity of approximately 28GW. However, only 20GW is currently operational. The country's business environment continues to present sizeable risks to investment (both industry and country specific). Under Chavez, private enterprise was stifled and rigidly controlled tariff rates led to a lack of capital for investment in sufficient capacity. The situation has hardly improved under President Maduro. In addition, despite repeated promises from the government, delays and problems with funding obstruct capacity development and improvements to the transmission and distribution (T&D) system in Venezuela.

More specifically, we believe:

The Venezuela Power Report features BMI Research's market assessment and independent forecasts covering electricity generation (coal, gas, oil, nuclear, hydro and non-hydro renewables), electricity consumption, trade, transmission and distribution losses and electricity generating capacity.

The Venezuela Power Report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing national and multinational operators by sales, market share, investments, projects, partners and expansion strategies.

Key Benefits

* Use BMI's independent industry forecasts for Venezuela to test other views - a key input for successful budgeting and strategic planning in the power market.
* Target business opportunities and risks Venezuela's power sector

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