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Venezuela Renewable Energy Market rising at CAGR of 5.88% by 2030, Driven by Government solar build-out plan and Solar Expansion | Mordor Intelligence
Venezuela Renewable Energy Market Size Overview
The Venezuela renewable energy market is projected to grow from 18.67 GW in 2025 to 24.85 GW by 2030 at a 5.88% CAGR. Hydropower remains dominant, while solar energy gains momentum through government projects and diaspora-financed rooftop systems.
This growth trajectory highlights Venezuela’s potential to diversify its energy mix. The nation’s geography offers abundant solar irradiation, strong wind corridors, and biomass resources. However, reliance on hydroelectric generation has exposed the grid to drought-linked blackouts, underscoring the need for diversification. The market’s expansion is shaped by both state-led initiatives and grassroots adoption of distributed solar solutions.
Venezuela Renewable Energy Market Growth Trends
Government Solar Build-Out Plan
The Venezuelan government has outlined plans to expand solar generation in the Andes region, focusing on states such as Mérida, Táchira, and Trujillo. The area’s strong sunlight and favorable climate conditions make it well suited for large-scale photovoltaic projects. Early approvals for new solar parks signal the beginning of efforts to reduce the country’s reliance on hydroelectric power.
Declining Cost of Solar and Wind
Falling global costs for solar panels and wind turbines are making renewable energy more accessible in Venezuela. Households and small businesses are increasingly able to invest in solar systems, particularly in areas where electricity supply is unreliable. This trend is helping narrow the gap between traditional energy sources and renewables.
Diaspora-Financed Rooftop Solar Kits
Financial support from Venezuelans living abroad is playing a growing role in the adoption of rooftop solar systems. Families and communities are using remittances to purchase solar kits, which are being installed in major cities where power outages are common. This grassroots movement is quickly becoming one of the most dynamic segments of the renewable energy market.
Rural Electrification Programs
Programs aimed at expanding solar access in remote regions have been relaunched to bring electricity to communities in the Andes and the Orinoco basin. Partnerships with local suppliers and assembly firms are helping improve the reach of off-grid solutions, ensuring that rural households benefit from renewable energy.
Emerging Microgrids and Crypto-Linked Demand
Small-scale microgrids are beginning to appear in certain regions, often linked to new forms of demand such as crypto-mining operations. These projects provide decentralized energy supply options and demonstrate alternative financing models outside of traditional state-led structures.
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Venezuela Renewable Energy Segmentation
By Technology
- Hydropower: Accounts for 99.4% of installed capacity (2024). The Tocoma Dam’s 2,700 MW expansion will reinforce hydro dominance but also deepen dependency risks.
- Solar Energy: Forecast to grow at an exceptional 142.2% CAGR through 2030, driven by the Andes initiative and rooftop adoption.
- Wind Energy: Limited growth, with 45 MW commissioned in Paraguaná. Expansion depends on tariff clarity and transmission upgrades.
- Bioenergy, Geothermal, Ocean Energy: Still at concept stage with no significant funding
By End-User
- Utilities: Represent 61.1% of installed capacity (2024) and are projected to grow at 8.9% CAGR by 2030.
- Residential: Fastest-growing segment due to remittance-driven rooftop solar adoption.
- Commercial & Industrial: Growth remains limited due to restrictive joint-venture rules and unclear permitting processes
Explore Competitive Landscape Details: https://www.mordorintelligence.com/industry-reports/venezuela-renewable-energy-market/companies?utm_source=industrytoday
Venezuela Renewable Energy Key Players
The competitive landscape is shaped by state control, sanctions, and financing challenges. CORPOELEC, the state-owned utility, dominates generation and dispatch, holding most hydro assets. International suppliers such as Siemens Gamesa, Andritz, ABB, and Huawei provide turbines, inverters, and control systems, often through sanction-compliant intermediaries. Local engineering and construction firms, including SOLINAL C.A., INGESOL C.A., Ingelectra, and Elecven, play a critical role in balance-of-plant works. Partnerships with Cuban and Chinese crews are common due to Venezuela’s workforce shortages. Recent developments include Zelestra’s EUR 5 billion investment plan for photovoltaic and hydrogen projects, with 200 MW earmarked for Venezuelan industrial off-takers
Conclusion:
While hydropower will remain dominant, diversification is essential to reduce blackout risks and strengthen resilience. The expansion of rooftop solar systems, diaspora financing, and rural electrification programs signal a shift toward decentralized energy solutions.
Challenges remain significant: grid unreliability, price-controlled tariffs, sanctions, and a shortage of skilled labor. Yet, opportunities exist for companies that can leverage alternative financing models, diaspora crowdfunding, and climate funds. As households and utilities embrace solar, Venezuela’s renewable energy market is poised for gradual but meaningful progress.
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