Power-hungry Venezuela to up electricity output

Venezuela is mulling over plans to boost its electric power generation by 17%, amid a power shortage that has forced the Latin American nation to ration electricity.

The newly installed Electricity Minister Ali Rodriguez says that in order to achieve the 17% rise in output, Venezuela will construct new power plants and overhaul the existing ones.

Speaking on Sunday Venezuelan President Hugo Chavez threw his weight behind the plan by announcing that he would create an “electricity fund” to guarantee that the goal is met, The Wall street Journal reported.

Chavez said he would allocate some USD 1 billion to improve the country’s energy sector.

Venezuela relies mostly on hydroelectricity produced at the Guri Dam in its largest Bolivar state.

Affected by El Nino weather phenomenon the country has witnessed low levels of downpour from May through November.

The water level at the Guri Dam, which generates 73 percent of the country’s electricity, has dropped by10 meters (33 feet) prompting the officials to take measures to avert a catastrophe.

Expert estimate that Venezuela will need some USD 18 billion to meet its growing demand in the power sector.