The Bolivian government has proposed a new electricity and renewable energy law that aims to open the electricity market to private competition, promote clean energy and attract foreign investment by allowing private companies to bid on public tenders.

This proposal has come when the government is facing a national crisis. Energy privatization is one of the issues at stake.

The possibility of privatization and the loss of natural resources due to foreign control are among the issues protesters have targeted during a massive national strike. As the work stoppage entered its third week, miners, teachers, unionized workers and campesinos gathered in the capital, La Paz.

Food shortages, rising fuel prices and inflation have further fueled discontent, leading to calls for President Rodrigo Paz to resign. Running on the slogan of “capitalism for all”, Bolivia elected Paz president in October during a historic runoff election.

New law challenges strikers’ demands

At a press conference, Hydrocarbons and Energy Minister Marcelo Blanco said that allowing private companies to import and export energy products would end ENDE’s state-run electricity monopoly.

He said, “With this new law, we are moving from a market largely controlled by the state to a competitive market and, above all, a market that gives the private sector its due role.”

The proposed law must still undergo institutional scrutiny, legislative debate, and input from civil society. Under its terms, ENDE would remain the system operator, while private companies could compete in power generation, transmission and distribution. A new independent body, the Energy Regulatory Unit, will ensure transparency and regulatory compliance.

The proposed law would replace a 1994 law that Blanco said was now outdated: “In addition, the current law does not take into account renewable energy and storage, so we have to adapt it to the new reality.”

The proposed law is in line with a regional trend towards modernization of the electricity sector, including public tenders for billing, renewable energy production and the import and export of energy to neighboring countries. Sixteen countries are working towards 80% renewable electricity by 2030 under the RALC (Renewables in Latin American Countries) initiative.

“We are advancing energy diversification by including non-conventional renewable energies, universal access to electricity, and ensuring that access is equitable and participatory,” Blanco said.