Global Gateway Programme on Energy Transition
Bolivia relies heavily on natural gas for electricity production and as a primary export. However, Bolivia has also shifted from being a net exporter of hydrocarbons to an importer while heavily subsidizing domestic gas consumption, which is depleting foreign currency reserves and leading to unsustainable fiscal deficits.
To address this dual dependency, Bolivia aims to diversify its electricity mix by incorporating renewable energy and by extracting, locally processing, and exporting lithium resources and derived products.
Bolivia holds up to 40% of the world’s yet-to-be-exploited lithium brines, presenting a unique opportunity to attract investment and diversify exports. The EU can support Bolivia accelerate its energy transition, while promoting a socially and environmentally responsible lithium sector aligned with international best practices.
The current action prepares future investments by focusing on two pillars:
- Implementation of a renewable energy programme, including the solar power plants of Vinto and Santivanez, aimed at reducing reliance on hydrocarbons and facilitating the decarbonisation of the electricity mix;
- Promotion of the development of a socially and environmentally responsible lithium sector, strengthening the local value chain.
The EU will fund preparation-phase technical assistance through the following activities:
- Assistance for the preparatory studies of the renewable energy programme, lithium associated structures or existing infrastructure;
- Supervision for the renewable energy programme and/or lithium associated infrastructures;
- Lithium sector framework studies (broad Environmental and Social diagnosis and a sector strategy to 2050);
- Review of the performance of existing lithium carbonate plant (diagnosis, action plan) and capacity building to local communities;
- Technical Consultancies to support operationalisation.
The EU shall also contribute with further funding to the implementation phase of the action, pending availability of funds.
The programme contributes to an effective climate resilient and low carbon economy and society through the acceleration of Bolivia’s energy transition to renewable energies. It also fosters the development of socially and environmentally responsible lithium and other critical raw materials supply value chain, boosting sustainable and inclusive economic and social development and growth. The project shall prepare Team Europe interventions under the Global Gateway Investment Agenda at the implementation phase.
In particular, the project aims to:
- Upgrade the policy and regulatory framework to allow for increased investments and facilitate the implementation of those investment projects;
- Support sectorial studies and capacity building geared towards the production of inclusive, affordable, reliable and sustainable energy;
- Install 189 MW of additional renewable generation capacity.
