BOLIVIA Trends and Developments Contributed by: Enrique Barrios, Emil Jung and Nina Leguizamón, Dentons Guevara & Gutiérrez
Dentons Guevara & Gutierrez Equipetrol Street 8 “Este” No 19 Dentons Guevara & Gutiérrez Building Santa Cruz de la Sierra Bolivia Tel: +591 3 3000300 Email: cecilia.camargo@dentons.com Web: www.dentons.com/es/global-presence/latin-america- and-the-caribbean/bolivia
Bolivia’s Electricity Sector Reform Bolivia’s power sector is undergoing the most signifi- cant transformation in its recent history. After decades of state-centred management that concentrated gen- eration, transmission and distribution under a single public enterprise – the Empresa Nacional de Elect- ricidad (ENDE) – the country now faces a structural deficit that has eroded service quality, discouraged private capital and left much of the installed capacity underutilised. The government that took office in late 2025 has signalled a decisive shift by proposing a comprehensive overhaul of the electricity framework, culminating in May 2026 with the formal submission of the draft New Law on Electricity and Renewable Energy (the “Draft Electricity Law”) to the Ministry of the Presidency. This article examines the key features of the proposed reform, the policy rationale behind it, the institutional architecture it envisions and the practical implications for private investors and energy market participants seeking opportunities in Bolivia. Background: A System Under Strain Bolivia’s energy landscape has historically been domi- nated by hydrocarbons. The bonanza years – fuelled by gas exports to Brazil and sustained by high interna- tional oil prices – allowed the state to expand its role across the entire energy value chain. YPFB (the state oil and gas company) and ENDE grew into the prin- cipal vehicles through which the government chan- nelled investment, often guided by political rather than purely commercial criteria. As Mauricio Medinacelli, then Minister of Hydrocarbons and Energy, noted in
a public interview in early 2026, investments in plants and infrastructure were frequently driven by political- party considerations rather than sound economic planning, leading to inefficiency and overreach. In the electricity sub-sector, ENDE’s near-monopoly in generation has hindered meaningful private participa- tion, generated inefficiencies in both investment and operations, and contributed to a deterioration in the quality of service delivered to businesses and com- munities nationwide. With gas production declining, export volumes shrinking and the fiscal capacity of state-owned enterprises severely constrained – YPFB alone carries estimated debts of USD500–600 million – the existing model has reached an inflection point. The government has acknowledged that the current framework has “exhausted its capacity to respond” and has deepened a broader hydrocarbon-energy crisis. Against this backdrop, the government announced plans to submit four new laws to the Legislative Assembly: a new Hydrocarbons Law, a new Electric- ity Law, a Green Energy Law and a Critical Minerals (Lithium) Law. The electricity reform, now consolidat- ed into a single Draft Electricity Law covering both conventional and renewable generation, is arguably the most immediately consequential reform for the power sector. The Draft New Law on Electricity and Renewable Energy On 6 May 2026, the Ministry of Hydrocarbons and Energy formally submitted the Draft Electricity Law to
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