BOLIVIA Trends and Developments Contributed by: Enrique Barrios, Emil Jung and Nina Leguizamón, Dentons Guevara & Gutiérrez
the Ministry of the Presidency, triggering the techni- cal, legislative and public-consultation process that will take the bill through UDAPE (the Social and Eco- nomic Policy Analysis Unit), CONAPE (the National Economic Policy Council), the Plurinational Legisla- tive Assembly and, ultimately, consultation with civil society, productive sectors and communities across the country. The bill is not yet publicly available, but official communications and ministerial statements have outlined its core structure. The proposed reform is built around five foundational pillars, each of which carries significant implications for market participants. Pillar 1 – opening generation, transmission and distribution to private investment The Draft Electricity Law opens all three segments of the electricity value chain – generation, transmission, and distribution – to private investment under clear and predictable rules. Private companies will be able to participate through long-term contracts backed by effective legal guarantees, providing the predictabil- ity and confidence that international investors require. Critically, ENDE will retain its role as a key operator but will no longer enjoy an exclusive or preferential position; instead, it will operate in a competitive envi- ronment with private entrants. Minister Medinacelli, who served until April 2026 and was replaced by Marcelo Blanco, had already signalled this policy direction in early 2026 when he stated the government’s intention to bring “more competition to the generation segment” and to enable ENDE to form public-private partnerships (PPPs). While transmis- sion and distribution are generally regarded as natu- ral monopolies, the government is actively evaluat- ing whether distribution companies should continue under ENDE’s umbrella or be structured differently – a discussion that will unfold regionally as part of the broader decentralisation agenda. Pillar 2 – creation of an independent energy regulator (ERE) One of the most structurally consequential features of the Draft Electricity Law is the creation of the Entidad Reguladora de Energía (ERE), an independent regula- tory body designed to eliminate the conflict of interest
inherent in a system where the state is simultaneously owner, operator and regulator. The ERE is conceived as an institution that guarantees technical oversight, transparency and regulatory compliance. For private investors, the existence of an autonomous regulator is a critical signal of institutional commitment to a level playing field. This represents a departure from the current institu- tional model, in which regulatory functions are dis- persed across government agencies closely tied to the executive branch. The ERE’s independence – if effectively enshrined in the final legislation – would bring Bolivia closer to the regulatory frameworks pre- vailing in comparable Latin American markets such as Colombia and Peru. Pillar 3 – competitive mechanisms and public auctions The Draft Electricity Law introduces competitive mechanisms – primarily through public auctions – aimed at ensuring efficient pricing and improving ser- vice quality. The government has drawn explicitly on international precedents, particularly the Colombian and European models, where energy auction systems determine which generators supply electricity based on efficiency and cost. Minister Medinacelli referred to these models when describing a system of “auc- tions within the volume allocation model” that would improve transparency for the sector and enable the most efficient private operators to supply electricity. For project developers and independent power pro- ducers, a well-designed auction framework would provide a transparent pathway to market entry and a bankable contractual basis. The success of this pil- lar will depend heavily on the detailed implementing regulations, including the design of auction rounds, eligibility criteria, contract tenure and price adjustment mechanisms – none of which are yet publicly known. Pillar 4 – energy diversification and renewable energy development The Draft Electricity Law positions Bolivia within the global trend towards energy diversification, promoting the development of renewable energy sources and recognising universal access to electricity as a right. Notably, the government has adopted the concept of
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