Bolivia Drafts Law to Open Power Sector to Private Renewable Investment

The draft law now enters a formal review that will pass through the Social and Economic Policy Analysis Unit, the National Economic Policy Council, and the Plurinational Legislative Assembly before a public consultation with social groups, businesses and local communities. The proposal keeps the state‑owned National Electricity Company (ENDE) as system operator but places it in a competitive framework alongside private participants.

Key provisions open all three electricity segments—generation, transmission and distribution—to private investment, provided projects meet defined regulatory rules, long‑term contracts and legal guarantees. An independent Energy Regulatory Entity would oversee technical compliance, transparency and price formation, including competitive public auctions for new capacity. The law also creates a medium‑scale distributed generation category for projects between 1 MW and 6 MW, simplifying approval by requiring only regulator authorization.

Bolivia currently operates about 194 MW of solar photovoltaic (PV) capacity, according to the International Renewable Energy Agency. The new framework is designed to address decades‑long structural deficits, low private participation, and declining service quality, while positioning the country as a regional hub for electricity generation, grid interconnection and cross‑border trade.

If enacted, the law could unlock significant private capital for renewable projects, improve grid reliability, and accelerate the transition to cleaner energy sources. By guaranteeing long‑term contracts and legal certainty, the government hopes to mitigate investment risk and attract both domestic and foreign developers. The creation of an independent regulator aims to ensure fair competition and prevent market distortions.

The next step is the technical and political review, followed by legislative debate. Stakeholders will have a chance to comment during the public consultation phase. Watch for the outcome of the review process and any amendments that could shape Bolivia’s renewable energy trajectory in the coming year.