Venezuela in Talks With China on Power Projects After Shortages

Nov. 16 (Bloomberg) -- Venezuela is in talks with China for 3,000 megawatts of new electricity projects as it seeks to boost production capacity following a crisis earlier this year that forced power rationing to avoid a collapse of the national grid.

Chinese companies may work on at least five projects to build hydroelectric reservoirs and thermoelectric plants in Venezuela as the nation seeks to boost capacity by 18,700 megawatts, Electricity Minister Ali Rodriguez said yesterday in an interview in Caracas, without naming the companies involved.

Venezuela is strengthening ties with China and tapping Russia for help to build its first nuclear plant to diversify power sources. The El Nino weather phenomenon caused drought earlier this year, cutting water levels at the hydro dams that provide 73 percent of the country’s power. The dry period led to Venezuela’s worst power crisis in six years, prompting cuts to production lines at state-run aluminum and steel companies.

“A crisis like the one we had this year will not be repeated,” Rodriguez said. “All of these investments will allow us to respond to any new problem El Nino might throw up.”

Venezuela is in talks with China on reservoirs that could generate 1,000 megawatts on the Cuchiveros River in the south and the second stage of the development of the Uribante Caparo reservoir that would produce 500 megawatts, Rodriguez said.

http://www.businessweek.com/news/2010-11-16/venezuela-in-talks-with-china-on-power-projects-after-shortages.html