ESMAP Bolivia Programme
Policy measure

According to ECLAC (2010), demand side management (DSM) constitutes a significant part of Bolivia’s energy policy and is part of a larger joint UNDP/World Bank project entitled ESMAP (Sector Management Assistance Programme) Bolivia Programme.

The aims of the programme were to (a) help the government ensure the sustainable development of rural energy and energy efficiency activities; (b) create incentives for energy efficiency and renewable energy usage; (c) ensure the effectiveness of technical assistance and financing mechanisms designed to develop rural energy and energy efficiency; and (d) develop projects demonstrating rural energy and the appliance of energy efficiency measures (ECLAC, 2010).


The energy efficiency component of the ESMAP entailed the implementation of energy efficiency pilot projects, the studying of electricity demand side management (DSM), cogeneration of electricity by various enterprises and design mechanisms that support energy efficiency (ESMAP, 2000).

ESMAP also proposed changes on the demand side aimed at flattening the daily electricity load curves of the Santa Cruz Rural Electricity Cooperative (CRE) and the Compañía Eléctrica de Sucre S.A. (CESSA). The main recommendations for demand side management were switching from incandescent bulbs and fluorescent lamps with electromagnetic reactance to fluorescent lamps with electronic reactance; replacing old refrigerators with new ones, consuming about 50 percent less electricity; switching from electricity to natural gas for water heating; improving design and construction buildings by adding thermal insulation in walls and roofs, thereby decreasing electricity consumption of air conditioning by about 70 percent (ESMAP, 2000).


ESMAP (2000) identified multiple barriers to DSM of a financial, regulatory and technical character. Furthermore, a time consuming challenge to the project was the interactions between the local team and the ministries, donors, prefectures and municipalities, the Centre for the Promotion of Energy Efficiency (CPTS-CPEE), local NGOs, chambers of commerce and the associations representing the economic sectors and enterprises as well as the final users. In addition, a heavy administrative burden was placed on Bolivia and the World Bank due to the administration of an unusually large number of contracts which contributed to project delays.


The outcomes of the ESMAP other than the purely financial benefits are that the studies of electric load curves of power distribution utilities could be replicated by each power utility and thereby function as a template, helping the utilities, consumers and the regulatory agency to identify DSM measures and the measures that would make them possible. Such studies also identified technical and financial barriers to energy efficiency and ways to remove these (ECLAC, 2010).


ECLAC (UN Economic Commission for Latin America and the Caribbean), 2010. Energy efficiency in Latin America and the Caribbean: situation and outlook. Chile: United Nations.

ESMAP (Sector Management Assistance Programme), 2000. Bolivia: Final Report on Operational Activities Rural Energy and Energy Efficiency. Washington, DC.