From pv magazine LatAm
The government of Bolivia has approved Supreme Decree 5549, amending the regulatory framework for distributed generation and formally creating a medium-scale distributed generation category for projects ranging from 1 MW to 6 MW.
The decree modifies Supreme Decree 4477 and sets connection conditions for medium-voltage networks. It simplifies procedures by requiring authorization from the sector regulator without the need to obtain a generation concession.
Supreme Decree 5549 is intended to increase the share of renewable energy in the electricity market by enabling projects to connect directly to distribution networks. The new category includes individuals and legal entities that, with regulatory authorization, interconnect generation systems to the medium-voltage network of the relevant electricity operator.
The measure expands and clarifies definitions related to eligible generators, interconnection procedures, and the conditions under which surplus electricity is compensated.
For small-scale generators, a net metering mechanism will apply, defined as the balance between electricity consumed and electricity injected into the grid.
For medium-scale projects, the regulator will determine a stabilized price. Remuneration will be covered by demand-side agents participating in the wholesale electricity market.
According to Hydrocarbons Minister Mauricio Medinaceli, the decree is designed to encourage the injection of privately generated surplus electricity into the national grid, promote self-consumption, and support the decentralization of generation.
The framework also provides for direct financial compensation from distribution companies to system owners, primarily those installing photovoltaic systems.
Bolivia aims to advance a more decentralized energy mix, prioritizing resources such as solar, hydropower, and biomass, depending on regional availability. The executive branch said technical details and complementary regulations will be published in the coming weeks, alongside a proposed “Green Law” intended to mobilize public and private investment for the energy transition.
Implementation will follow a phased approach, beginning with the private sector and later extending to commercial and residential users. The strategy combines regional resource potential – including high solar irradiation in the Altiplano and biomass availability in eastern regions – with a regulatory framework designed to lower administrative barriers and enable new market participants.
According to the International Renewable Energy Agency (IRENA), Bolivia had 177 MW of installed PV capacity at the end of 2024.
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