Commercial segment leading Bolivia's DG growth, study shows

The commercial sector is leading distributed generation (DG) growth in Bolivia rather than the residential sector, according to a study by local think tank Fundación Jubileo.

Jubileo argues that this market dynamic goes against the “spirit” of the country’s DG framework established by supreme decree in March 2021. Approval of tax incentives followed in July that year.

“The commercial sector is the most active in DG as it perceives a clear incentive (it has the highest levels of electricity and, in general, its greatest activity is carried out in sun hours). The Bolivian household sector, as a whole, has financial limitations to access DG,” according to the analysis.

The think tank highlights that Bolivia’s installed DG reaches an estimated 5.54MW while the goal set in its nationally determined contributions is 37MW by 2030.

Of the 5.54MW, 80% is in the commercial sector, 15% industrial and 4.7% residential.

Source: Fundación Jubileo

The research claims that among the DG barriers is that fulfilling requirements to register a system with a power distributor is “too tedious and unfriendly.”

During a hydrocarbons and energies ministry public presentation, minister Franklin Molina Ortiz announced that the decree was under review to improve DG registration.

Molina also said a procedure will be drafted to regulate the economic remuneration of all DG categories.

Jubileo’s study is available in the Documents box in the top-right corner of the screen.