Hydropower In Bolivia: Electricity Generation And Potential

Bolivia has an estimated installed generating capacity of 1,365 MW as of 2012, with a total energy consumption of 7.375 billion kWh in 2013. The country's electricity production is based on thermoelectricity (71%), hydroelectricity (20%), and solar and wind power (9%). Hydropower is a cornerstone of the region's energy infrastructure, and Bolivia has a considerable hydro potential, with an estimated technically feasible potential of 126 TWh/yr, of which 50 TWh/yr is economically exploitable. The country has set a target of generating 70% of its domestic electricity from renewable energy sources, mainly hydropower, by 2025.

Hydropower's share of Bolivia's electricity generation mix

Hydropower is a cornerstone of South America's energy infrastructure, contributing approximately 45% of its electricity supply. In 2023, hydropower generation reached 728TWh, marking an increase of 16TWh from 2022. Bolivia has a considerable hydro potential, with a technically feasible potential of 126 TWh/yr, of which 50 TWh/yr is considered economically exploitable.

In Bolivia, hydropower accounts for a smaller share of the generation mix compared to other South American countries. In 2006, hydropower contributed 40% of the country's total installed capacity of 1.43 GW, while thermal production, which primarily burns natural gas, accounted for 60%. In 2014, hydropower's share of the generation mix was 35%, with thermal generation dominating at 65%. The average electricity tariff in Bolivia in 2006 was lower than the Latin American average, at US$0.0614 per kWh for residential users and US$0.044 per kWh for industrial users.

Bolivia has set ambitious targets for renewable energy sources, particularly hydropower, to meet its energy goals. In 2015, the Bolivian government passed an investment law to improve the investment climate and boost energy production. The government set a target of generating 70% of domestic electricity from renewable sources, mainly hydropower, by 2025.

Bolivia's electricity sector is dominated by the state-owned ENDE Corporation, which represents about 80% of total generation capacity. ENDE's installed hydroelectric capacity in 2016 was 494 MW, distributed across some 21 facilities. The largest plant is the 93 MW Saint Isabel, operated by Corani.

The country has a number of hydropower projects in the pipeline, including the Ivirizu hydropower project, which is expected to commence full operation in March 2025, and the Miguillas hydropower complex, with a planned commissioning date of October 2025.

In summary, while hydropower plays a significant role in Bolivia's electricity generation mix, the country relies more heavily on thermal generation. However, with its abundant hydro resources and ongoing projects, Bolivia aims to increase the share of renewable energy in its energy mix in the coming years.

The country's hydropower potential

Bolivia has a considerable hydropower potential, with estimates suggesting a capacity of more than 38,000 MW, almost 80% of which is found in the Amazonian region. The country has a technically feasible potential of 126 TWh/yr, with 50 TWh/yr considered economically exploitable. In 2016, Bolivia's installed hydroelectric capacity was 494 MW, distributed across 21 facilities. The largest plant is the 93 MW Saint Isabel, operated by Corani.

The Bolivian government has set a target of generating 70% of its domestic electricity from renewable sources, mainly hydropower, by 2025. To achieve this, the government is investigating possible sites for hydropower facilities, and several major plants are planned. The aim is to generate enough energy to export to neighbouring countries such as Brazil, Peru, and Chile.

Bolivia's hydropower sector is dominated by the state-owned ENDE Corporation, which operates the majority of the country's hydroelectric facilities. ENDE has been working with Brazil on a joint project to exploit the hydroelectric potential of the Rio Madeira complex in the Amazon region. This project includes the 800 MW Cachuela Esperanza plant in Bolivia and the Guajara-Mirim plant (3000 MW) on the border between the two countries.

The expansion of the hydropower sector in Bolivia is also supported by foreign investment, particularly from Chinese firms. For example, the Chinese firm POWER­CHINA Kunming Engineering Corporation Limited awarded a contract to ANDRITZ HYDRO for the San José hydroelectric complex, which includes the San José 1 and 2 run-of-river plants with a combined capacity of 126 MW.

Overall, Bolivia has a significant hydropower potential that is yet to be fully harnessed. The government is working to increase renewable energy production, with a focus on hydropower, and aims to become a net exporter of energy to neighbouring countries.

Hydropower projects in the pipeline

Bolivia has only used around 2% of its estimated hydropower potential, with approximately 80% of the untapped capacity located in very remote areas. The country has prioritised large-scale hydropower projects through state-owned utilities, investing significantly in capacity expansion with support from national funds and international loans.

The Ivirizu Hydropower Project

The Ivirizu hydropower project, comprising two plants in cascade, Sehuencas and Juntas, has a combined installed capacity of over 292 MW. It has reached 82% completion and is expected to be fully operational by March 2025.

The Miguillas Hydropower Complex

The Miguillas hydropower complex consists of two systems: Umapalca (86 MW) and Palillada (119 MW). Umapalca has achieved 62% construction completion, while Palillada is at 23%. The commissioning of these plants is anticipated for October 2025 and December 2026, respectively.

The Rio Madeira Project

The 3,000 MW binational Rio Madeira project is also in the pipeline.

The Cachuela Esperanza Plant

The 800 MW Cachuela Esperanza plant is another major project in the works, sited entirely in Bolivia.

The Guajara-Mirim Plant

Additionally, the Guajara-Mirim plant (3,000 MW) is planned to be located on the border between Bolivia and Brazil.

The Huaji Plant

The new HPP Huaji in the Zongo Valley near La Paz for customer COBEE is also underway.

The San José Hydroelectric Complex

In February 2015, the EPC contractor POWER­CHINA Kunming Engineering Corporation Limited awarded a contract to ANDRITZ HYDRO for the San José hydroelectric complex in Bolivia. The run-of-river plants San José 1 (two 28 MW Pelton units) and San José 2 (two 35 MW Pelton units), owned by Bolivia’s state-owned power utility Empresa Nacional de Electricidad (ENDE), are part of the expansion plan for the Corani Basin.

The role of the private sector in hydropower generation

Bolivia has the potential for more than 38,000 MW of hydropower, with almost 80% of this potential found in the Amazonian region. The country has set a target of generating 70% of its electricity from renewable sources, mainly hydropower, by 2025.

The private sector has played a significant role in the development of hydropower in Bolivia. In the 1990s, the electricity sector was privatised, with the state-owned Empresa Nacional de Electricidad (ENDE) being unbundled into generation, transmission, and distribution segments. This privatisation led to the creation of three private generation companies: Corani, Guaracachi, and Valle Hermoso, which together represent 70% of total generation. However, in 2010 and 2012, the Bolivian government re-nationalised the generation and transmission segments, expropriating these companies from their former British and French owners.

Currently, there are eight generation companies in the interconnected system, all of them privately owned. The largest of these is the Compañia Boliviana de Energía Eléctrica (COBEE), which serves the region surrounding La Paz. COBEE is also a major producer of electricity in Bolivia, alongside the state-owned ENDE.

The private sector has been involved in the construction and modernisation of hydropower plants in Bolivia. For example, ANDRITZ HYDRO, a private company, has installed or modernised more than 60 units with a total capacity of 400 MW, representing almost three-quarters of Bolivia's hydropower fleet. Private companies have also been involved in the development of major hydropower plants, such as the Rio Taquesi Hydroelectric Power Project, which is registered under the Clean Development Mechanism.

In addition to domestic private companies, foreign investment has also played a role in the hydropower sector in Bolivia. Chinese firms have made significant investments in the country, and Chinese companies have been involved in the construction of hydropower plants, such as the Coca Codo Sinclair project in Ecuador.

The impact of hydropower on electricity prices

Hydropower is an important source of electricity in Bolivia, contributing to 35% of the country's electricity generation mix. While the country has a considerable hydro potential, estimated at more than 38,000 MW, it has yet to fully harness this resource. In 2016, the installed hydroelectric capacity in Bolivia was 494 MW, distributed across 21 facilities. The largest plant is the 93 MW Saint Isabel plant, operated by Corani.

• No fuel costs: Hydropower relies solely on the power of moving water, eliminating the need for costly fuels and shielding consumers from price fluctuations.
• Long lifetimes: Hydropower infrastructure tends to have long operational lifetimes, typically ranging from 50 to 100 years, which helps to offset the high upfront costs of construction.
• Low operating costs: Hydropower is considered relatively inexpensive to operate, with generation costs ranging from 2 to 4 cents per kilowatt-hour.

These factors contribute to low electricity costs for consumers, making hydropower an economical source of energy.

On the other hand, there are also factors that can influence electricity prices in Bolivia:

• Investment and financing: The privatization of the electricity sector in the 1990s led to increased investment and competition. However, distribution companies may resell electricity to communal organizations or rural enterprises at unregulated prices, creating a legal void in the sector.
• Rural electrification: The Bolivian government has implemented various rural electrification plans and decrees to improve access to electricity in rural areas. These initiatives involve significant investments and may impact electricity prices.
• Environmental impact: The construction of hydropower facilities can have negative environmental consequences, including the displacement of communities and the disruption of aquatic ecosystems. These impacts may lead to increased costs associated with mitigation measures and relocation of infrastructure.
• Climate change: Changing climate conditions, such as droughts, can impact the availability of water resources for hydropower generation, affecting electricity prices.

In conclusion, while hydropower has the potential to provide inexpensive electricity in Bolivia, there are also factors that can influence electricity prices, including investment dynamics, rural electrification efforts, environmental impacts, and the unpredictable effects of climate change.

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