FINWIRES · TerminalLIVE
FINWIRES

Venezuela Activates Emergency Grid Measures as Power Demand Hits Near-Decade High

By

-- Venezuela's Ministry of Electricity has activated emergency measures to stabilize the national grid after electricity consumption surged this week to its highest level in nearly a decade, the government said Thursday, warning of renewed strain on a system long marked by instability, news outlets reported.

The Ministry of Electricity did not specify the measures but called on private businesses to cut usage and reiterated a ban on energy-intensive cryptocurrency mining. Officials said the spike in demand was driven by higher temperatures and increased economic activity, adding that peak consumption exceeded 15,500 megawatts on Thursday.

Bloomberg reported that the rising load on the system is complicating efforts to revive key sectors such as oil, mining, and industry, all of which are heavily dependent on reliable electricity. The grid has endured years of underinvestment in hydroelectric facilities and transmission infrastructure.

On Monday, Reuters reported that less than 40% of Venezuela's electricity generation capacity is currently operational, resulting in frequent blackouts and restricting industrial and manufacturing activity.

Outages have been especially severe outside Caracas. In Zulia state, a major oil-producing region, residents have reported blackouts lasting six hours or more per day amid ongoing rationing.

Electricity Minister Rolando Alcala, speaking on state television, said consumer cooperation was essential. "We are working hard to recover and stabilize the system," he said. "The national electrical system is the engine, the core factor, for all development activities in a country," Bloomberg reported.

State media have repeatedly aired conservation messages urging households to unplug appliances when not in use as part of efforts to reduce grid load, the news agency said.

Energy analysts have long warned that Venezuela's dependence on an overstretched hydroelectric system, combined with limited thermal generation capacity and maintenance gaps, leaves the grid highly vulnerable to demand spikes and climate-related stress.

Related Articles

Commodities

Hawaiian Electric Q1 Power Sales Edge Higher, Expands Grid Investment Plans

Hawaiian Electric Industries (HE) reported Q1 earnings on Friday, showing total electricity sales of 1,972 GWh, compared with 1,965 GWh a year earlier.The company reported Hawaiian Electric sales rose to 1,457 GWh for the quarter ended Mar. 31, up from 1,453 GWh a year earlier.Electricity sales for Hawaii Electric Light were 258 GWh for the quarter, compared with 255 GWh a year earlier.Maui Electric maintained quarterly electricity sales at 257 GWh in Q1, unchanged from a year earlier, according to Hawaiian Electric.Hawaiian Electric secured approval for the Waiau Repower project with a revised estimated cost of about $1.16 billion, compared with the original $847 million estimate submitted earlier in the process.Hawaiian Electric forecast total capital expenditures of $625 million to $750 million in 2026, compared with $368 million in 2025, as the utility expands wildfire safety and grid modernization programs.

$HE
Commodities

US Natural Gas Update: Prices Soften on Slower LNG Exports

US natural gas futures prices extended losses in after-hours trade on Friday amid slower feedgas flows to LNG terminals, after earlier gains following US government data showing a smaller-than-expected inventory build.Both the front-month Henry Hub futures contract and the continuous contract edged down by 0.69% to $2.75 per million British thermal units.Prices dipped as less natural gas was used in the export system, leaving more floating around in the domestic US.Feedgas flows to LNG export terminals slowed by 4.6% from last week to 17.7 billion cubic feet on Friday, Barchart said, citing BNEF data. LNG feedgas had recently reached peak levels of about 20 Bdf per day but declined due to ongoing maintenance and operational constraints at several terminals, including Corpus Christi, Cameron, and Calcasieu Pass.Some of the deficit was offset by increased flows to the Golden Pass facility as it continues to ramp up and has recently reached record output levels during commissioning, Gelber & Associates said.A total of 30 vessels left the US carrying 115 Bcf in the week ended May 6, down five vessels and 18 Bcf from the previous week, the US Energy Information Administration said.On Thursday, prices rose after the EIA said net injections into storage totaled 63 Bcf for the week ending May 1, below analyst expectations of 72 to 80 Bcf. The build was also significantly smaller than the five-year average of 77 Bcf and last year's net injection of 104 Bcf during the same week.Thursday's total put stocks at 2,205 Bcf, 139 Bcf, or 7% above the five-year average and 75 Bcf, or 4% more than last year at this time.Production was pegged at 110.6 Bcf/d, up nearly 4% from year-ago levels and demand was 0.8% stronger than it was a year ago at 67.5 Bcf/d.

Commodities

Money Managers Uphold Bullish Stance in Biofuels Futures, Options Markets, CFTC Says

Money managers stay bullish or net long in the biofuel futures and options markets, according to the Commodities Futures Trading Commission's weekly Commitments of Traders Report.The weekly COT Report, as of the week ending May 5, showed that money managers are net long, a bet that the market will go higher, in the California Low Carbon Fuel Standard market by 61,602 contracts.The COT report showed that money managers are net long by 467 contracts in the D6 RINS Current Year futures and options markets.In the D4 Biodiesel RINS Current Year futures and options markets, money managers hold a net long position of 3,620.For ethanol, money managers are net long by 6,928 contracts in the futures and options markets.Money managers are net long soybean oil futures and options by 169,142 contracts, after adding 4,000 long positions from a week ago.