This dialogue coincides with government plans to finalize four energy regulations, one of which is the updated Electricity Law, aiming to facilitate the growth of alternative energies competing with the dominant thermoelectric generation fueled by subsidized gas. The sector warns that without swift reform, Bolivia faces a gas supply deficit by 2028, potentially forcing costly LNG imports with prices rising to $15 per thousand cubic feet.
Parallel to subsidy reforms on gasoline and diesel, which gained sector support, experts urge timely adjustment of natural gas subsidies to enable renewables scale-up. Notably, Bolivian renewables have significant potential, including solar power, which remains underleveraged due to current market distortions.
Amid these challenges, the government explores incentives in generation and distribution contracts to stabilize long-term investment conditions. Success hinges on coordinated policy actions to realign energy pricing, promote clean energy infrastructure, and safeguard Bolivia’s energy security while transitioning towards a diversified power matrix.
This article was curated and published as part of our South American energy market coverage.
