The new draft law on electricity and renewable energy, developed by the Ministry of Hydrocarbons and Energy, is entering the technical, legislative and public consultation phase, with expected changes to the generation, transmission, distribution and regulatory frameworks.
Bolivia’s Ministry of Hydrocarbons and Energy has submitted the draft of the new Electricity and Renewable Energy Law to the Ministry of the Presidency, marking the start of a formal review process. The proposal will now go through the Social and Economic Policy Analysis Unit (UDAPE), the National Economic Policy Council (CONAPE) and the Plurinational Legislative Assembly, followed by a public consultation phase involving social organizations, productive sectors and local communities.
The draft aims to reform the country’s electricity regulatory framework, which the government says has been hit by “structural deficits” for decades, in addition to limited private investment, inefficiencies in capital expenditure and operations, and declining quality of service.
According to the ministry, the proposal retains the state-owned National Electricity Company (ENDE) as the system operator, but integrates it into a competitive framework alongside private sector participants. It also opens up the generation, transmission and distribution segments to private investment, subject to defined regulatory rules, long-term contracts and legal guarantees.
The draft further proposes the establishment of an independent energy regulatory body (ERE) responsible for technical oversight, transparency and regulatory compliance. It also introduces competitive public auctions as a mechanism for pricing and improving service delivery.
A key element of the proposal is the promotion of renewable energy, in addition to the recognition of universal access to electricity as a fundamental right. The government also states that the new framework aims to position Bolivia as a regional hub for electricity generation, grid interconnection and cross-border energy exchange.
With the submission of the draft, the technical and political review process leading up to the legislative debate has now officially begun.
In February, the government of Bolivia passed High Decree 5549, which changes the regulatory framework for distributed generation and formally creates a category of medium distributed generation for projects ranging from 1 MW to 6 MW. The decree amends Supreme Decree 4477 and establishes connection conditions for medium-voltage networks. It simplifies procedures by requiring approval from the sector regulator, without the need for a generation concession.
Bolivia had approximately 194 MW of operational PV capacity at the end of 2025, according to the latest statistics from the International Renewable Energy Agency (IRENA).
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