Protests escalate in La Paz over President Rodrigo Paz's new energy privatization law.
The Bolivian government has proposed a new Electricity and Renewable Energy Law, which it says aims to open the electricity market to private competition, promote clean energy, and attract foreign investment by permitting private companies to bid on public tenders.
The proposal arrives as the government faces a national crisis. Energy privatization is one of the issues at stake.
The possibility of privatization and the loss of natural resources to foreign control are among the issues protesters have targeted during a vast national strike. As the work stoppage entered its third week, miners, teachers, unionized workers, and campesinos converged on the capital, La Paz.
Food shortages, rising fuel prices, and inflation have sparked further discontent, leading to calls for President Rodrigo Paz to resign. Running on the slogan “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.
“With this new law, we move from a market largely controlled by the state to a competitive market and, above all, one that gives the private sector its proper role,” he said.
The proposed law still must 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 electricity generation, transmission, and distribution. A new independent body, the Energy Regulatory Entity, would ensure transparency and regulatory compliance.
The proposed legislation would replace a 1994 law that Blanco said is now outdated: “Furthermore, the current law does not take into account renewables and storage, so we must adapt it to the new reality.”
The proposed law aligns with a regional trend toward modernizing the electricity sector, which has included public tenders for billing, renewable energy generation, and the import and export of energy to neighboring countries. Sixteen countries are working toward 80% renewable electricity by 2030 under the RALC (Renewables in Latin American Countries) initiative.
“We are pursuing energy diversification through the incorporation of non-conventional renewable energy, universal access to electricity, and ensuring that access is equitable and participatory,” Blanco said.
