The electricity sector in Bolivia is dominated by the state-owned ENDE Corporation (Empresa Nacional de Electricidad), although the private Bolivian Power Company (Compañia Boliviana de Energía Eléctrica; COBEE) is also a major producer of electricity. ENDE had been unbundled into generation, transmission and distribution and privatized in the 1990s, but most of the sector was re-nationalized in 2010 (generation) and 2012 (transmission and distribution).

The supply is dominated by thermal generation (65%), while hydropower (35%) has a smaller share in its generation mix compared to other South American countries. (Latin America and the Caribbean, or LAC, average hydropower capacity is 51%.EIA Statistics) In 2014, national electricity supply of 1580.35 MW comfortably exceeded the 1298.2 MW maximum demand."La demanda máxima coincidental en 2014 fue de 1298.2 MW y la generación disponible en ese periodo fue de 1580.35 MW." Like in other countries, Bolivia's electricity sector consists of a National Interconnected System (SIN) and off-grid systems (known as the Aislado).

The national government's priorities for the electricity sector include providing universal access to electricity and producing surplus energy for export. The electricity coverage in rural areas is among the lowest in Latin America and improving it represents a major challenge in the future. The government envisions a major expansion of electricity generation capacity to over 8,000 MW over the decade from 2015 to 2025, primarily to export surplus generating capacity.

Electricity supply and demand

Installed capacity

In Bolivia, the National Interconnected System (SIN) connects major population centers and represents 83% of the installed capacity. The SIN provides electricity to the largest cities and operates in the Departments of Cochabamba, Santa Cruz, Oruro, Potosí and Chuquisaca. Its grid extends over 1,200 miles and covers the central and southern parts of the country.UDAPE 2004 The population in the northern and western parts of the country remains largely unconnected to the national grid, either served by the off-grid system (the Aislado) or having no access to electricity at all. The off-grid system consists of numerous self producers and independent power plants in rural or isolated areas.EIA Bolivia Report

Total installed capacity in 2006 was 1.43 GW, of which 60% was thermal production, which primarily burns natural gas, and 40% hydroelectric. The contribution of other renewables is almost negligible. Total electricity production in the same year amounted to 5.29 TWh. This figure does not include electricity produced in rural areas from biomass facilities, which are unorganized, decentralized, and difficult to quantify.

Bolivia's electricity export and import activities are fairly limited. Imports from Brazil amount to less than 0.01 TWh per year and have so far been devoted to supply the city of Puerto Suarez, in the Department of Santa Cruz.

Demand

Electric power consumption per capita in 2006 was 588 kWh (a 19% increase since 1996). By sector, residential consumption represents 40% of the total, followed by industrial consumption with 28%.

Demand and supply projection

According to the demand projections prepared by the Superintendencia de Electricidad (SE), the generation capacity reserve will be insufficient by 2009 as it will fall below the recommended 10% if no new capacity is developed.

Access to electricity

In 2005, total access to electricity in Bolivia was 67%, one of the lowest in Latin America. Urban access was 87%, while rural access remained as low as 30%.

(See Recent Developments for more information on electrification plans)

Interruption frequency and duration

Service quality as measured by interruptions was much better than the LAC average in 2005. In the period November 2004 – October 2005 there were a total of 141 transmission interruptions (up from 86 in the previous period), with a total duration of 4,274 minutes. 57% of the interruptions were due to weather conditions and, while 17% derived from facility operations. In 2005, the average duration of interruptions per subscriber was 5 hours (highest since 1998 although far below the 14 hours average for LAC), while the average number of interruptions per subscriber per year was 7 (highest since 1995 but also below the 13 average for LAC).Benchmarking data of the electricity distribution sector in Latin America and Caribbean Region 1995-2005

Distribution and transmission losses

During the 1990s and up to 2005, distribution losses have always been close to 10%, which is below the 13.6% average for the region.

Responsibilities in the electricity sector

Policy and regulation

The Viceministry of Electricity and Alternative Energy, within the Ministry of Petroleum and Energy, is in charge of establishing policies and designing the regulation for the electricity sector. The Superintendencia de Electricidad (SE) is responsible for applying the regulation.

The companies that belong to the National Interconnected System (SIN) must be vertically unbundled. However, the companies in the off-grid system (the Aislado) are allowed to perform more than one of the activities defined in the electricity industry (i.e. generation, transmission, distribution).

Generation

Currently, there are eight generation companies in the interconnected system, all of them privately owned. The three largest companies alone represent 70% of the total generation. The largest company serving the SIN is the Compañia Boliviana de Energía Eléctrica (COBEE), which serves the region surrounding La Paz. The other two are Empresa Eléctrica Guarachi (EGSA) and Empresa Eléctrica Corani (CORANI).

Transmission

Currently, there are three transmission companies which operate the high-voltage Interconnecting Trunk System (STI), the backbone of the SIN. ENDE Corporation, ISA Bolivia, which was created in 2005, and San Cristobal TESA. The state-owned ENDE incorporates Transportadora de Electricidad (TDE), which was owned by Spain's Red Electrica de España (REE). As of 2013, its transmission network extended 2,850 km, representing 79% of the national total.. ISA Bolivia, which runs 587 km, or 16%, of the transmission network in Bolivia, is a subsidiary of Interconexión Eléctrica S.A. (ISA), a corporation controlled by the government of Colombia. San Cristobal TESA has 172 km of transmission lines, or 5%. The number of companies is limited due to the existence of institutional entry barriers in this sector.

Distribution

In Bolivia, the six existing distribution companies enjoy a geographic monopoly in their concession areas. The largest company is Electropaz, majority-owned by Spain's Iberdrola; followed by Empresa de Luz y Fuerza Eléctrica Cochabamba (ELFEC), which was owned by the American PPL Global until 2007. The third place is occupied by the Rural Electrification Cooperative (CRE), which operates in the Department of Santa Cruz.

In some cases, especially in the high plateau, cooperatives and community organizations access the distribution companies’ network and sell electricity to small rural communities. Sometimes, those are organized enterprises that provide the service to middle-size towns, but in most cases, they are small organizations that serve family communities. This situation faces a legal vacuum since the consumers benefiting from these scheme, who do not consume the minimum power established legally established, cannot be considered as regulated ones. In addition, these consumers are localized outside the distribution companies’ concession areas, so they cannot receive the companies’ service. In practice, the distribution companies are reselling electricity to the mentioned organizations outside the legal framework. Accurate information on the number of organizations that operate in rural areas does not exist. However, there are approximately three in La Paz, twenty in Oruro and three in Potosi.

Operators in the off-grid system

The departments of Beni, Pando and Tarija and the eastern region of Santa Cruz are not integrated in the SIN. As a result, there are vertically integrated operators that provide the service. The most important operators are:

SETAR (Servicios Eléctricos Tarija, S.A.): 44 MW, serves 56,885 clients ENDE (Empresa Nacional de Electricidad): 16.65 MW, serves 28,554 clients CRE (Cooperativa Regional de Electricidad): 14.53 MW, serves 4,940 clients

Renewable energy resources

Renewable energy resources other than hydropower are barely exploited in Bolivia, and their contribution to electricity generation is insignificant. However, the potential of decentralized electricity systems (i.e. solar photovoltaics or PV, wind, etc.) for disperse populations was recognized by the government in the Rural Electrification Plan (PLABER). This component established that the service to households, schools and health facilities in areas of low population density would rely on locally available renewable energy sources.

Hydropower Bolivia has a considerable hydro potential, its technically feasible potential being assessed at 126 TWh/yr, of which 50 TWh/yr is considered to be economically exploitable. Only a small proportion of the total potential has been harnessed so far. The share of hydropower capacity in Bolivia is 40%, which is below the 51% average for the region. Installed hydroelectric capacity in 2016 was 494 MW, distributed amongst some 21 facilities. The largest plant is the 93 MW Saint Isabel, operated by Corani. Bolivia is working with Brazil on a huge joint project to exploit the hydro-electric potential of the Rio Madeira complex in the Amazon region. Within this project are the 800 MW Cachuela Esperanza plant sited entirely in Bolivia and the Guajara-Mirim plant (3000 MW) to be located on the border between the two countries.Bolivia hydropower 01/12/2018.

Solar

The World Bank is financing a rural infrastructure project in Bolivia which, among others, plans to install 17,000 solar home systems by 2009. Another project funded by the Global Partnership on Out-based Aid which is administered by the World Bank intends to scale up the installations by an additional 7000 in the next three years. (see External Assistance below)

In the mid-2010s, ENDE began building and operating large-scale solar power plants including the following: A 5.1 MW solar photovoltaic plant in Cobija, Pando, providing power to Cobija, Porvenir, Filadelfia, Bella Flor, Puerto Rico, and Chivé. The project was funded 47% by ENDE and 53% by the Danish official aid agency. The Yunchará solar photovoltaic plant in Yunchará, Tarija, which opened as a 5 MW plant in July 2017. A second phase would produce an additional 50 MW. The Uyuni solar photovoltaic plant in Uyuni, Potosí, scheduled to open as a 50 MW plant in March 2017.

History of the electricity sector

Early history

Electricity in Bolivia started in 1899, when tin magnate Simón Iturri Patiño built a Diesel-generated power plant in Uncía, which provided energy to his nearby residence and the Miraflores mine. The first hydroelectric power plant was built in 1902 in Landara. Soon after more hydroelectric plants were built around the urban centers of Potosí, La Paz and Cochabamba. One of the first overhead power lines run around 50 km between the Incachaca power station and Cochabamba. The hydroelectric station and power line were built in 1914 by a german company and served both urban electrification and the traction of the Cochabamba - Vinto - Arani railway. The ruins of the Incachaca power station are a tourist destination today.