The proposed law marks a fundamental shift from state-dominated electricity markets toward competitive structures with expanded private sector roles. According to Blanco, the current legal framework remains dispersed across multiple decrees and resolutions, creating regulatory complexity and institutional disorder. The existing legislation, dating from 1994, focuses heavily on thermal generation and natural gas dependency without adequately incorporating renewable energy sources, energy storage, distributed generation, or other technologies central to global energy transitions.
Key provisions include the introduction of renewable energy auctions to enhance competition and transparency in project allocation, creation of a new “commercializer” role not present in previous legislation, and expanded private sector participation in international electrical interconnections previously dominated by state utility ENDE. The government plans to establish an independent Energy Regulatory Entity (ERE) to eliminate conflicts of interest and ensure technical oversight and regulatory compliance. The Ministry of Hydrocarbons will assume central responsibility for energy policy definition, while a specialized unit will handle national electricity system expansion planning.
Lupo emphasized that structural reform is necessary to attract capital and address Bolivia’s fiscal deficit, arguing that improved revenues depend on creating legal certainty through transformation of productive sectors he characterized as systematically damaged over the past 20 years. The electricity law represents the first in a series of structural legislation the executive intends to advance in coming months, including new investment, mining, and hydrocarbon frameworks.
The reform positions Bolivia to develop its role as a regional energy hub through strengthened generation capacity and cross-border interconnections with neighboring countries. The legislation also recognizes universal electricity access as a right while promoting tariff equity, operational efficiency, and long-term supply security.
This article was curated and published as part of our South American energy market coverage.
