WSHPDR_2013_Final_Report-updated_version

provide not only labor, but local materials. Before the
project is finally transferred to the community for
operation, maintenance and administration, an
agreement on the management model is decided
upon, in order to ensure sustainable management.
This agreement provides drafts of rules and
regulations and facilitates its adoption and
implementation. Once transferred, the programme is
limited to the provision of specialized technical
assistance when called upon by the local
organization. 7 More than 22 small hydropower plants
with a combined capacity of 600 kW have been
developed through this project.
In 2007, the Vice-Ministry of Land Planning and
Environment, through its National Plan of
Development, established the Energetic Sovereignty
and Independence Policy to promote the investigation
and sustainable development of alternatives sources
of energy, such as hydropower, biomass, wind, etc.) by
implementing specific programmes.
As of 2009, the role of issuing policies has been
decentralized from the national Government to the
prefectures (the Government of each state, in 2009,
nine states won the bid for autonomy) who have
become vital policy institutes with their own budget.
In addition the Alcaldías, (the municipal magistrate)
play a fundamental role as intermediate actors
between the villages and the main institutional
electricity providers. The Alcaldías also have their own
economic policies and co-finance rural electrification
projects. 8
Legislation on small hydropower
The Government of Bolivia presses a strong
importance on the central electricity grid which
significantly suppresses the development of small
hydropower. Until 1996 the tariff advantage (25 per
cent discount for small users of the central grid)
hindered the use of small hydropower and promoted
the use of other resources such as solar. Companies
such as Energética, as of 2009, have however
considered increasing the use of small hydropower. 8
The Superintendencia de Electricidad is the main
institute of the sector; they control the tariffs,
monitor the quality and are also in charge of licence
distribution. These stages were crucial for small scale
systems, however, systems smaller than 300 kW were
set free, from these obligations thus allowing easier
implementation without the input of the
Superintendencia de Electricidad. 8
Barriers to small hydropower development
Various attempts at power market liberalization had
little success, causing Bolivia to move towards greater
Government intervention in the power sector. This is
evidenced by the nationalization of Red Electrica, the
grid operator, in 2012. Investment in the sector is
often hindered by a stronger governmental presence. 3
The main disadvantage facing small hydropower
development in Bolivia is the political predisposition
towards the central electricity grid and the unequal
distribution of funds. In addition, a lack of financial
expertise in the department of tariffs to keep up with
inflation rates, causes the plants to strongly rely on
Government support.
Political and financial constraints coupled with scarce
local technological knowledge and training further
hamper the growth of the small hydropower sector.
Thus, not only do plants have to rely on governmental
support but they also have to turn towards
organizations and large corporations for aid. 9
However organizations such as the Instituto de
Hidraulica e Hidrologia (IHH) shine a positive light on
the future of small hydropower in Bolivia, thanks to
their networking policy and follow-up habits with
project benefactors. 9
Bolivia’s value chain in relevance to overall renewables
remains fairly underdeveloped with only one company
active in small hydropower and two in the biomass
sector. 3
References
1. Central Intelligence Agency (2012). The World
Factbook. Available from
www.cia.gov/library/publications/the-world-factbook
2. Organización Latinoamericana de Energía (2012).
2012 Energy Statistics Report. Quito.
3. Bloomberg New Energy Finance and Multilateral
Investment Fund (2012). Climatescope 2012: Assessing
the Climate for Climate Investing in Latin America and
the Caribbean. New York. Available from
www5.iadb.org/mif/Climatescope/2012/img/content/
pdfs/eng/Climatescope2012-report.pdf.
4. Autoridad de Fiscalización y Control Social de
Electricidad (2011). Anuario Estadístico 2011. La Paz.
Available from
http://sawi.ae.gob.bo/docfly/app/webroot/uploads/I
MG-ANUARIO-admin-2012-06-20-anuario_2011.pdf.
5. International Energy Agency (2011). World Energy
Outlook 2011, 9 November 2011. Paris.
6. Grueso Gonzáles, Andrés (2007). Estudio sobre el
impacto social, económico y ambiental de pequeñas
centrales hidroeléctricas implantadas en comunidades
rurales de La Paz, Bolivia. La Paz. Available from
www.upv.es/upl/U0566473.pdf.
7. Energypedia (2011). Bolivia Country Situation.
Available from http://energypedia-uwe.ideasketch.com/wiki/Feedback.
8. Drinkwaard, Wouter (2009). The Diffusion of Microhydro
Power for Rural Electrification in Bolivia- a
learning approach-. Eindhoven. Available from
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