NDF - Financing for climate change and development projects

Rural electrification with renewable energy in Bolivia

Photo: IDB

NDF has approved a EUR 4.0 million grant financing to support renewable energy solutions in the rural electrification program in Bolivia

About 65% of the electricity fed to the national grid in Bolivia is based on fossil fuels, mainly natural gas and diesel. In isolated electricity systems 97% of the generation is based on diesel fuel. In order to meet the growing electricity demand, the Government of Bolivia has decided to diversify the energy mix by increasing the use of renewable energy, mainly hydro and geothermal.

In rural areas, the electricity coverage is estimated at 53%. Approximately 420,000 homes in rural areas are without electricity. In 2008, the Government of Bolivia approved the Programa Electricidad para Vivir con Dignidad (PEVD), whose objective is to achieve universal access to public electricity service in urban areas by 2015 and in rural areas by 2025. NDF will support the Government of Bolivia through the IDB financed Rural Electrification Program with funding to replace diesel generation in rural electricity systems by introducing hybrid systems using renewable energy including solar, wind or micro hydro generation. NDF will further promote renewable energy and energy efficiency by providing basic energy services to rural schools, hospitals and government buildings in rural areas through the use of solar photovoltaic (PV) and/or solar water heater (SWH) systems. The project will mitigate climate change by replacing fossil fuels by renewable energy and at the same time increase the reliability of energy supply in rural areas, providing basic energy services to rural population. By hybridizing existing diesel power plants, every produced kWh by renewable energy sources will reduce the use of diesel fuel usage and thus reduce GHG emissions. Likewise, solar PV systems and thermo-solar systems will reduce the use of fossil fuels and wood for energy supply in rural areas.

More information
C47 Bolivia: Rural Electrification with Renewable Energy