Powering Bolivia's Clean Energy Future

Bolivia relies heavily on natural gas for electricity production and as a primary export. The country has also shifted from being a net exporter of hydrocarbons to an importer, and heavily subsidises domestic gas consumption. This is depleting foreign currency reserves and creating unsustainable fiscal deficits. 

To address this dual dependency, Bolivia seeks to diversify its electricity mix by incorporating renewable energy and by extracting, locally processing, and exporting lithium resources and derived products. 

Objectives

Bolivia holds up to 40% of the world's untapped lithium brines, presenting a unique opportunity to attract investment and diversify exports. The EU is helping Bolivia accelerate its energy transition, while promoting a socially and environmentally responsible lithium sector aligned with international best practices. 

This project lays the groundwork for future investments across two pillars: 

• Rolling out a renewable energy programme, including the solar power plants of Vinto and Santiváñez, aimed at reducing reliance on hydrocarbons and decarbonising the electricity mix.
• Promoting the development of a socially and environmentally responsible lithium sector and strengthening the local value chain. 

Project activities

The EU is funding preparation-phase technical assistance through the following activities: 

• Preparatory studies for the renewable energy programme and lithium infrastructure;
• Supervision of the renewable energy programme and/or lithium infrastructure;
• Lithium sector framework studies (including a broad environmental and social assessment and a sector strategy to 2050);
• Review of the performance of the existing lithium carbonate plant (diagnosis and action plan) and capacity building for local communities;
• Technical consultancies to support operationalisation. 

The EU will also consider contributing further funding for the implementation phase, pending availability of funds. 

(Expected) Results

The programme supports a climate-resilient, low-carbon economy and society by accelerating Bolivia's energy transition to renewable energy. It also supports the development of socially and environmentally responsible supply chains for lithium and other critical raw materials, boosting sustainable and inclusive economic and social growth. The project will prepare Team Europe interventions under the Global Gateway Investment Agenda for the implementation phase. 

 In particular, the project aims to: 

• Upgrade the policy and regulatory framework to attract increased investment and facilitate investment projects;
• Support sector studies and capacity building geared towards inclusive, affordable, reliable and sustainable energy production;
• Install 189 MW of additional renewable energy generation capacity. 

Implementing partners

AFD, 

EIB, Bolivian Government