Renewables represent a significant portion of Bolivia’s 2GW national grid, where 16% of the country’s installed capacity comes from biomass, small hydro and wind plants. In 2014, the country published Decree 2048 to encourage clean energy development and increase the participation in the country’s matrix. Last year, the country’s first wind farm was commissioned, a 3MW plant located in the department of Cochabamba. Additionally, a 5MW PV plant located in the Amazonia isolated system was financed and began construction.
As a natural gas producer, Bolivia has a major reliance on this fuel for power generation. In 2014, 58% of all the 8.4TWh generated came from gas plants. According to Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), Bolivia’s oil & gas company, the country produced 64.5 MMm3-day last year and the bulk of it was exported to neighbour countries Argentina and Brazil. Additionally, the price of natural gas for power plants has been fixed since 2001, at $1.3/tcf, well below international prices. Such low prices make natural gas generation very cheap, making it difficult for renewable projects to compete.
The country’s power sector is mostly served by state-owned company Empresa Nacional de Electricidad (ENDE). Through its 11 subsidiaries, ENDE is responsible for most of generation, transmission and distribution in the system. Electricity prices have increased in the past years, although rates remain low compared to other countries in Latin America. In 2014, the average retail electricity price was $0.11/kWh.
Bolivia has a low electrification rate when compared to other Latin America countries. Around 87% of Bolivians have access to the grid, with high rates in ruban areas (around 97%), and low rates in rural areas (around 67%). This amount is expected to rise due to the government’s “Electricidad para Vivir con Dignidad” (Electricity for Life with Dignity) program, which focuses on extending the grid, and installing solar photovoltaic systems, wind systems and hybrid systems in low-income municipalities across the country.
Score Summary
Bolivia scored 1.04 in Climatescope 2015, 29th among countries overall. It gained seven places from 2014’s overall country rankings by advancing from seventh to second place on Clean Energy Investment and Climate Financing Parameter II, in which it performed especially well on the Growth Rate of Clean Energy Investments indicator.
On Enabling Framework Parameter I, Bolivia ranked 48th, unchanged from 2014, with a score of 0.61. It registered a particularly good performance on the Clean Energy Rural Electrification indicator.
On Parameter II, Bolivia rated second overall with a score of 1.73, up from 1.10 in 2014, when it finished seventh.
On Low-Carbon Business & Clean Energy Value Chains Parameter III, Bolivia ranked 51st in 2015 with a score of 0.64, down three positions from 2014.
On Greenhouse Gas Management Activities Parameter IV, Bolivia’s 2015 ranking of 27th was four spots below 2014’s, with scores of 1.21 in 2015 and 1.33 the previous year.