Electricity Access In Rural Bolivia: How Many Covered?

Bolivia is one of the poorest countries in Latin America, and while its urban centres such as La Paz and Santa Cruz are modern cities with a good supply of modern energy services, the majority of its rural areas lack even the most basic services, including reliable and affordable 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%. However, according to the Bolivian Statistics Institute, the national electrification rate in 2014 was 88% with 98% in urban areas and 57% in rural areas. More recent data from the same source indicates that by 2015, 98% of urban areas and 75% of rural areas had access to electricity.

Bolivia's rural electrification rate is one of the lowest in Latin America

Bolivia has one of the lowest electrification rates in Latin America, with 30% of its rural population having access to electricity as of 2005. This figure increased to 73% in 2016, but Bolivia is not on track to achieve universal access by 2025. The country has implemented several initiatives to improve access, such as the "Living with Dignity" program, which targets the poorest communities. However, more investment is needed, particularly in the states of Potosi, Pando, and Beni.

The Bolivian government has set a goal of achieving universal access to electricity by 2025 and has established programs such as the Programa Electicidad para Vivir con Dignidad (PEVD) to work towards this objective. Between 2014 and 2019, 4,300 households were connected to the power grid, providing electricity to approximately 20,200 people. Additionally, 708 kilometers of electricity distribution lines were constructed during this period.

The World Bank and other organizations have supported Bolivia's electrification agenda through projects that focus on providing electricity to unserved areas and building capacity among local entities. Despite these efforts, Bolivia's electrification rate in rural areas remains low compared to other countries in Latin America.

The country's electricity sector is dominated by the state-owned ENDE Corporation, with thermal generation being the primary source of supply. Hydropower plays a smaller role in Bolivia's energy mix compared to other South American countries. The government has recognized the potential of decentralized electricity systems, such as solar photovoltaics, to improve access in rural areas. However, the implementation of these systems and overall electrification efforts continue to face challenges.

The government has set a target of universal access to electricity by 2025

The Bolivian government has set an ambitious target of achieving universal access to electricity by 2025. This goal is closely connected to the country's broader aim of eradicating extreme poverty, especially in rural and peri-urban areas. To achieve this target, Bolivia has implemented several initiatives, such as the "Living with Dignity" program (PEVD), which was launched in 2008 to promote access to electricity for all, with a focus on the poorest areas.

The government has recognised the link between improving electricity access and reducing poverty rates. As of 2018, electricity access rates in remote areas were below 90%, and the rural electrification rate in Bolivia is the lowest in the Amazon region. To address this, the government has prioritised bringing electricity to these remote regions.

Between 2014 and 2019, significant progress was made, with 4,300 households connected to the power grid, providing electricity to approximately 20,200 people. Additionally, 708 kilometres of electricity distribution lines were constructed or rehabilitated during this period. These efforts have had a positive impact on the lives of those connected, improving health, education, and overall quality of life.

The World Bank has been supporting Bolivia's electrification agenda since 2003, with projects focusing on grid extensions and off-grid systems. The Bank provided a credit of US$50 million to cover the costs of three project components, contributing 84.5% of the total project cost. Other donors, such as Germany's KfW and the Inter-American Development Bank, are also supporting the universal electricity effort.

To further its objective of universal access, the Bolivian government has adopted a decentralised service framework, granting autonomous departmental governments and municipalities new responsibilities for rural and peri-urban electrification. This includes the design and implementation of investments, asset ownership, and operations and maintenance. The government also envisions a major expansion of electricity generation capacity to over 8,000 MW between 2015 and 2025, with a focus on renewable energy sources.

The World Bank is supporting Bolivia's electrification agenda

The World Bank has been supporting Bolivia's electrification agenda since 2003. The Access and Renewable Energy Project is a continuation of this support, which has included two prior lending operations that benefited 42,000 households. The earlier projects focused on utility-owned grid extensions and user-owned off-grid systems.

The Access and Renewable Energy Project aims to support Bolivia's universal access and decentralization objectives and to assist the autonomous departmental governments and municipalities in meeting the challenge of expanding access, enhancing ownership, and building capacity. The project focuses on providing electricity using household connections in unserved areas in Chuquisaca and Potosi and on building capacity among the entities involved in project implementation.

The World Bank Group, through the International Development Association, provided a credit of US$50 million to cover the costs of the three project components, accounting for 84.5% of the project's total cost. Following a restructuring in 2018, the IDA credit was reduced to US$11.13 million, although it remained the project's main source of financing.

In November 2023, the World Bank approved US$125 million in financing to support Bolivia in expanding and improving access to sustainable electric service for rural homes and communities. With this operation, more than 141,000 people will have new or improved access to electric power for domestic and productive use through grid extension, construction of mini-grids, and installation of individual solar energy (photovoltaic) systems.

The World Bank's support for Bolivia's electrification agenda is in line with the country's objective of reducing poverty and achieving universal access to electricity by 2025. As of 2014, Bolivia had made considerable progress in reducing poverty and inequality, but poverty still affected more than 61% of the rural population, almost twice the urban poverty rate. Access to basic services, such as electricity, has a direct impact on alleviating poverty and enhancing the social inclusion of the rural poor.

The World Bank's projects in Bolivia also include the Decentralized Infrastructure for Rural Transformation (IDTR I and II) and the Global Alliance for Results-Based Aid (GPOBA) projects, which aim to improve infrastructure services and promote renewable energy sources.

The electricity sector in Bolivia is dominated by the state-owned ENDE Corporation

Bolivia has one of the lowest rates of access to electricity in Latin America, with only 30% of its rural population having access as of 2005. The country is working towards achieving universal access to electricity by 2025.

ENDE began its supply operations in 1967 with the Corani Hydroelectric Plant, which had a capacity of 27,000 KW, and the Corani-Cochabamba-Catavi transmission line. In the following decade, ENDE expanded its energy sales services to the departments of Santa Cruz, Sucre, and Potosí, and contributed to the organization and strengthening of electricity distribution companies in the country. Since 1980, ENDE has operated the National Interconnected System (SIN), which includes the systems of La Paz, Oruro, Cochabamba, Sucre, and Potosí.

In the 1990s, ENDE was unbundled into generation, transmission, and distribution and privatized. However, most of the sector was re-nationalized in 2010 and 2012. Today, ENDE continues to play a major role in the electricity sector in Bolivia, with operations in all nine departments of the country. The company has also been involved in building and operating large-scale solar power plants in recent years.

The national electrification rate in 2014 was 88%

In 2014, Bolivia's national electrification rate was 88%. This means that, while 98% of urban areas had access to electricity, only 57% of rural areas did. This disparity is due in part to the difficult topography of Bolivia, which makes communication and transport challenging. Some regions are completely isolated during the rainy season, and climate change is gradually making the situation worse.

The low electrification rate in rural Bolivia is also due to the fact that the country is one of the poorest in Latin America, with a high level of inequality. In 2013, poverty affected more than 61% of the rural population, almost twice the urban poverty rate.

The Bolivian government has set the objective of achieving universal access to electricity by 2025. Between 2014 and 2019, 4,300 households were connected to the power grid, providing electricity to approximately 20,200 people. In addition, the country constructed 708 kilometers of electricity distribution lines. The government has also established a program called Programa Electicidad para Vivir con Dignidad (PEVD, Electricity Program for Living with Dignity), which targets the poorest communities in both rural and urban areas.

The World Bank is supporting Bolivia's electrification agenda through the Access and Renewable Energy Project, which has been ongoing since 2003. The project aims to support Bolivia's universal access and decentralization objectives and assist local governments in expanding access, enhancing ownership, and building capacity.

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