Energy thumb|right|Wind energy in Pedernales province. The electricity sector has had big investments in the last decade 2010 to 2020 diversifying the sector away from petroleum which decreased from 50% of energy generation to 7%. The largest generation sources as of 2021 are coal, natural gas and renewables representing together 93% of electricity generation. This has transformed a strategic sector of the economy into a stable and lower cost sector. The rate of electricity loss improved from 38% in 2005 to 30% in 2019 showing improvement in the infrastructure. Low collection rates, illegal connections, infrastructure problems and poor governance are the sources of the high level of electricity loss in the system. The government plans to continue providing subsidies. Congress passed a law in 2007 that criminalizes the act of illegal electric connections. The state subsidizes the cost of electricity, funding the cost via indirect taxation instead of direct price increases for lower-income households, therefore it is a redistributive policy and partly funded by the country as a whole instead of the direct consumers of electricity. The profit from renewables, natural gas, and coal is positive and considered the current and future of the system, given that petroleum derivatives are considered more volatile and expensive in running costs.
Energy thumb|right|Wind energy in Pedernales province. The electricity sector has had big investments in the last decade 2010 to 2020 diversifying the sector away from petroleum which decreased from 50% of energy generation to 7% The largest generation sources as of 2021 are coal, natural gas and renewables representing together 93% of electricity generation. Th.is has transformed a strategic sector of the economy into a stable and lower cost sector. The rate of electricity loss improved from 38% in 2005 to 30% in 2019 showing improvement in the infrastructure. Low collection rates, illegal connections infrastructure problems and poor governance are the sources of the high level of electricity loss in the system. The government plans to continue providing subsidies. Congress passed a law in 2007 that criminalizes the act of illegal electric connections. The state subsidizes the cost of electricity, funding the cost via indirect taxation instead of direct price increases for lower-income households, therefore it is a redistributive policy and partly funded by the country as a whole instead of the direct consumers of electricity. The profit from renewables, natural gas, and coal is positive and considered the current and fu,ture of the system, given that petroleum derivatives are considered more volatile and expensive in running costs.