Bolivia secures $204.2 million for grid links and storage

IDB, a multilateral development bank, has approved $204.2 million to connect isolated power systems in northern Bolivia to Brazil’s electricity grid while funding solar and battery energy storage systems to reduce diesel use in remote Amazon communities.

The financing includes a $142.2 million ordinary capital loan from IDB, a parallel loan of $60 million, and a $2 million grant from the Climate Investment Funds (CIF).

The program forms part of the IDB’s Amazonia Forever initiative and its South Connection regional strategy, which aims to promote electricity integration among South American countries to improve supply reliability and reduce electricity costs.

A key component will connect Bolivia’s isolated electricity systems to Brazil’s grid. The project will link the system in Cobija, capital of Bolivia’s Pando department, to the distribution network in Brazil’s Acre state, while the systems in Guayaramerín and Riberalta, in the Beni department, will connect to the grid in Rondônia state.

The program will also finance upgrades to electricity distribution networks in the three Bolivian cities, including modern control systems, cybersecurity measures, and smart metering infrastructure.

For remote communities in the Beni and Pando departments that continue to rely on isolated diesel-powered electricity systems, the program will add solar PV plants and BESS. The projects are intended to reduce diesel consumption, lower operating costs, and improve supply reliability.

According to IDB, about 209,000 people in Riberalta, Guayaramerín, Cobija, and other remote communities in the Bolivian Amazon will benefit from more reliable, affordable, and sustainable electricity service. The bank also expects the program to reduce government spending on diesel for power generation.

The $142.2 million IDB loan has a repayment period of 23.5 years, including a seven-year grace period, with an interest rate referenced to the Secured Overnight Financing Rate (SOFR). The $60 million Clean Technology Fund parallel loan has a 30-year maturity, an 8.5-year grace period, and a fixed interest rate of 1.33%. The $2 million grant will support investments to strengthen energy security across the Amazon region.

From pv magazine Brazil