The Bolivian government presented the draft of the new Electricity and Renewable Energy Law , an initiative that aims to transform the country's energy model by opening the sector to private investment and promoting clean energy.
The proposal, prepared by the Ministry of Hydrocarbons and Energy and submitted to the Ministry of the Presidency, now begins a technical and political evaluation process that will include analysis by the Social and Economic Policy Analysis Unit (UDAPE), the National Council for Economic Policy (CONAPE), legislative debate, and outreach to various sectors of civil society.
The new framework maintains ENDE as a strategic player in the Bolivian electricity system, albeit under a competitive model with private companies. The initiative envisions private participation in electricity generation, transmission, and distribution through long-term contracts and legal guarantees designed to attract capital and increase predictability for investors.
"With this new law, we are moving from a market controlled almost entirely by the State to a competitive market, giving the private sector the role it deserves." "Furthermore, the current law does not take into account renewables and storage, so we must adapt it to the new reality," stated Marcelo Blanco , Bolivia's Minister of Hydrocarbons.
One of the project's central aims is to accelerate the diversification of Bolivia's energy matrix through the development of renewable energy sources. The legislation also recognizes universal access to electricity as a right and promotes competitive mechanisms, such as public auctions, to improve tariff efficiency and service quality.
The law also proposes the creation of the Energy Regulatory Entity (ERE), an independent body that will seek to strengthen transparency and technical control of the market, eliminating potential conflicts of interest within the current regulatory structure.
"We have incorporated the figure of the marketer and there will be renewable energy auctions to have a more competitive and transparent market and above all greater competition and efficiency," Blanco explained.
With this reform, Bolivia seeks to align itself with regional trends in modernizing the electricity sector, where several countries are advancing competitive bidding processes to incorporate large-scale renewable energy generation. The government believes the new framework will allow for increased installed capacity, strengthen interconnection infrastructure, and boost energy exchange with neighboring markets.
In addition to the renewable energy component, the proposal aims to position the country as a future regional energy hub, leveraging its strategic location and the potential for expansion of its energy resources. The debate that will unfold in the coming stages will be key to determining the scope of private sector participation and the pace of implementation of structural changes in the Bolivian electricity sector.