The proposed law maintains ENDE as system operator but introduces competition with private actors across generation, transmission and distribution. The framework establishes five core elements: opening all segments to private investment under long-term contracts with legal guarantees; creating an independent Energy Regulatory Entity (ERE) to eliminate conflicts of interest; implementing public auctions to determine efficient pricing and improve service quality; advancing renewable energy development while recognizing universal electricity access as a right; and positioning Bolivia as a regional energy hub through enhanced generation capacity and cross-border interconnections.
The legislative push responds to a deepening energy crisis. Bolivia’s proven natural gas reserves collapsed from 10.45 trillion cubic feet in 2013 to 3.7 trillion cubic feet in 2025, with daily production halving over the decade. State oil company YPFB acknowledged in March 2026 that Bolivia may need to import gas for domestic consumption before 2031. Thermoelectric plants operating on subsidized gas at $1.20 to $1.60 per million BTU have sustained residential tariffs around $15 per megawatt-hour, among the continent’s lowest. Thermal generation accounts for 2,512.5 MW of Bolivia’s 3,530 MW installed capacity, while non-conventional renewables represent just 9% of the total.
The cost gap presents a fundamental challenge to private participation. Bolivia’s Oruro and Uyuni solar projects recorded generation costs of $77 and $58 per MWh respectively, compared to a 2024 wholesale market marginal cost averaging $16.41 per MWh. The national dispatch center maintains a stabilization fund that held approximately $61 million at year-end 2024 to cover the spread between regulated prices and actual costs. Minister Marcelo Blanco stated the law begins a transition from state-controlled markets to competitive structures, incorporating distributed generation, energy storage and independent power traders not recognized under current regulations. The government will conduct consultations with productive sectors and civil society organizations alongside the technical and legislative review.
This article was curated and published as part of our South American energy market coverage.
