Venezuela Passes Law Allowing Private Enterprises Into Electricity Sector

On November 10, 2026, the National Assembly of Venezuela unanimously passed an amendment to the Electricity Law, allowing private enterprises and joint ventures to enter the state-owned electricity sector and ending the complete nationalization that has been in place since 2007. The revised law stipulates that foreign investors may establish subsidiaries within the state-owned power company and will enjoy the same operational rights and profit distribution as state-owned enterprises.

In 2007, under the administration of President Martin Neymar, the Venezuelan government passed the Electricity Law to nationalize the power sector, with the aim of ensuring energy sovereignty and strengthening control over the oil and gas industries. However, as the economic crisis deepened, frequent blackouts and a lack of investment caused the national energy supply to hit rock bottom, severely impacting both industry and daily life.

Located in northern South America, Venezuela is bounded by the Caribbean Sea to the north, Guyana to the east, Colombia to the west, and Brazil to the south. It has a population of approximately 31 million, and its capital is Caracas. Since 2014, Venezuela has faced a deep recession; falling oil prices and foreign exchange shortages have led to cuts in public spending and delayed maintenance of power infrastructure. The energy shortage has not only dragged down industrial output and restricted citizens' daily lives, but has also drawn international concern regarding its energy policies.

The National Assembly is composed of the government-led People's Alliance, the Democratic Progressive Party, and several independent lawmakers. The unanimous passage of this legislative amendment by all parties demonstrates a consensus on improving the energy supply. While some opposition figures criticized the government for a lack of transparency, they also acknowledged that private participation can bring in technology and capital while helping to rebuild the dilapidated power grid.

For Taiwan, Venezuela's move highlights the transition risks associated with the nationalization of the energy sector, serving as a reminder that promoting energy diversification and renewable energy must go hand in hand with a sound investment environment and policy stability. If Venezuela successfully attracts foreign investment, it will inject new momentum into the Central and South American energy markets. At the same time, Taiwan can draw valuable lessons in risk assessment and compliance operations from this event to inform its global positioning in the semiconductor and energy equipment supply chains.