Venezuela could build a 745MW power plant for the El Palito oil refinery, as a national energy crisis causes rolling blackouts, Electricity Minister Ali Rodriguez said.

The power plant will cost about $700m to build, Rodriguez said at a press conference in Caracas, reports Bloomberg.

The El Palito refinery in Carabobo state has the capacity to process 130,000 barrels of oil a day.

The country is investing about $6bn this year to boost power output and reduce dependence on hydroelectric plants, after a drought caused blackouts.

“We’re looking to solidify our electricity grid,” Rodriguez said.

Venezuela plans to raise power generation to 25GW this year and 31GW in 2015 to meet growing demand, according to Bloomberg.