Venezuela’s interim president, Delcy Rodríguez, signed an agreement with General Electric’s local branch, General Electric Vernova, to modernize and repair the nation’s deteriorating power grid. The deal was announced during a televised event at the presidential palace on Monday.

Opening the Economy to US Investment

Rodríguez, who assumed power after US forces took control of Venezuela in January following the ouster of former President Nicolás Maduro, described the agreement as “a historic step for Venezuela.” This move is seen as part of a broader effort to open the country’s economy to foreign investors, particularly from the United States.

Before Maduro’s removal, Rodríguez was known for her staunch criticism of US influence in Venezuela. However, the interim administration has recently shown a shift in policy, allowing greater participation from international companies. Energy Minister Rolando Alcalá, an electrical engineer appointed by Rodríguez three months ago, played a key role in negotiating the deal with General Electric.

Challenges in Venezuela’s Energy Sector

Venezuela’s power infrastructure has been in decline for years. The country has faced frequent power outages, with some lasting up to 10 hours, affecting major cities including Caracas. The Guri hydroelectric power dam, a critical source of electricity, has been operating below capacity due to a prolonged drought, a factor the Maduro government previously cited as the cause of outages.

However, analysts have pointed out that the energy crisis is more complex than just drought. Years of underinvestment, poor maintenance, and high consumption have severely weakened the grid. The nationalization of the power sector in 2007 under Hugo Chávez, Maduro’s predecessor, has also been cited as a contributing factor to the current state of disrepair.

Rodríguez emphasized that the agreement with General Electric would help restore what she called “an essential service.” The deal is expected to bring much-needed modernization to Venezuela’s energy infrastructure, though critics remain skeptical about the government’s ability to maintain transparency and accountability in the process.

Cooperation with the Trump Administration

Rodríguez has closely collaborated with the Trump administration on various issues. Last week, US forces conducted a military strike that killed the leader of the Tren de Aragua criminal gang. US Secretary of Defense Pete Hegseth stated that the operation was carried out “in full co-operation with Venezuelan security forces,” a shift from previous years when such coordination was nearly nonexistent under Maduro.

Despite this cooperation, some opposition figures have highlighted that key government institutions—such as the legislative, executive, and judicial branches—remain under the control of Maduro loyalists. The electoral council, which is responsible for overseeing elections, is also still dominated by his supporters, raising concerns about the feasibility of holding free and fair elections in the near future.

US Senator Marco Rubio, speaking to Congress, stated that “ultimately the answer in Venezuela is a free and fair democratic election because it’s not just the right thing, it’s also necessary for them to attract the kind of investment that they want.” However, he added that “you have to create the conditions for that,” including free and open media and the ability for political parties to organize and prepare for elections. He noted that “all that work is ongoing,” but did not specify when elections might occur.