Venezuela in Talks with China on New Power Projects

18 November 2010 (Last Updated November 18th, 2010 18:30)

Venezuela is in talks with China to develop 3,000MW of new electricity projects to boost production capacity after power shortages. Electricity Minister Ali Rodriguez said Chinese companies may work on five projects, which includes building hydroelectric reservoirs and thermoelectric p

Venezuela is in talks with China to develop 3,000MW of new electricity projects to boost production capacity after power shortages.

Electricity Minister Ali Rodriguez said Chinese companies may work on five projects, which includes building hydroelectric reservoirs and thermoelectric plants in Venezuela to boost capacity by 18,700MW.

Venezuela has faced its worst power crisis in six years due to drought caused by the El Nino weather phenomenon earlier this year, according to Bloomberg.

The drought led to a reduction in water levels at the hydro dams, which provides 73% of the country's power, which in turn led to cuts in production lines at state-run aluminium and steel companies.

Venezuela is also in talks with China to develop reservoirs that could generate 1,000MW on the Cuchiveros River in the south and the Uribante Caparo reservoir that would produce 500MW.

The government has also imported 142 transformers from Siemens AG and Portugal to replace old ones and is looking to form alliances or buy local transformer factories.

Venezuela is strengthening its ties with China and is seeking help from Russia to build its first nuclear plant to diversify power sources.