Venezuela is one of the world’s largest producers and exporters of crude oil. Its power matrix relies on conventional sources, such as large hydro, natural gas and oil & diesel. Hydro generation represents half of its total 30.4GW of installed capacity. The nation’s abundant hydro resources, together with subsidies for oil-based generation, leave little space for the development of clean energy projects.
State-owned Corporación Eléctrica Nacional (CORPOELEC), the sole power generation, distribution and transmission company, controls Venezuela’s electric system. It was created in 2007 from a merger of 14 regional public and private companies. The Ministerio del Poder Popular para la Energía Eléctrica (MPPEE) is in charge of formulating and implementing energy policies.
After large hydro, the bulk of Venezuela’s installed capacity is oil and diesel (8GW) and natural gas (7.4GW). Renewable energy from non-conventional sources, less than 0.2% of the total capacity, is comprised of 25MW of small hydro, 50MW of wind and 2.3MW of solar.
The South American country has almost 100% grid coverage, and its electricity prices are heavily subsidized. In 2014, the average retail rate was $0.02/kWh, the lowest in Latin America and the Caribbean.
In 2005, FUNELEC, a technical institution to the electric sector development, created the “Programa Sembrando Luz” to bring solar- and wind-powered electrification to the handful of rural and indigenous areas not connected to the grid. As of September 2012, the program had installed 3,139 renewable energy systems in more than 1,000 communities. In addition, there has been some development on utility-scale projects. In early 2015, a 1MW solar project in the archipelago of Los Roques was commissioned, part of a diesel-PV hybrid plant.
Score Summary
Venezuela ranked 54th overall in this year’s Climatescope, the same as in the prior year’s survey. Its overall score was 0.40, compared to 0.32 last year.
Venezuela enjoyed a higher ranking on Low-Carbon Business & Clean Energy Value Chains Parameter III due to a better Financial Institutions in Clean Energy Indicator. However, the country’s overall ranking was restrained by a lack of progress on other parameters.
Venezuela was ranked last among all Climatescope countries on Enabling Framework Parameter I, with a 0.15 score. Last year ranking was the same on a score of 0.11.
On Clean Energy Investment and Climate Financing Parameter II, Venezuela equaled its last year ranking of 51st. Its 2015 Parameter II score was 0.17 versus 0.19 in 2014.
On Low-Carbon Business & Clean Energy Value Chains Parameter III, Venezuela in 2015 advanced 13 places to 31st with a score of 1.34. Its 2014 score of 0.89 put it in 44th place.
On Greenhouse Gas Management Activities Parameter IV, Venezuela’s 2015 metrics of 44th place at 0.60 were unchanged from its 2014 metrics.