Interview with Marcelo Blanco Quintanilla, Minister of Hydrocarbons and Energy of Bolivia

20 May Interview with Marcelo Blanco Quintanilla, Minister of Hydrocarbons and Energy of Bolivia

What are the key areas of legislation that you will be focusing on within your ministry?

The first thing this government has done is carry out a series of measures that will focus on the most strategic sectors, namely hydrocarbons, electricity, lithium and other laws that the government is promoting. The first law we submitted to the Minister of the Presidency is the Electricity Law, through which ENDE, the state-owned company, is not only allowed to play an important role and be strengthened, but at the same time, the activity is opened to the private sector. Over 20 years ago in the 1990s, 98% of the electricity activity was controlled by the private sector; now it is completely the opposite. Therefore, everything we are implementing through decrees and the new law is aimed at promoting private activity while allowing ENDE to continue playing a role, but competing with private companies. At no point has privatization been considered; it is not the government’s intention to privatize. Rather, the intention is to strengthen ENDE.

We are also introducing the Hydrocarbons Law. We are working with all market agents and all investors. This law is currently being reviewed through working groups. Both laws — and, in general, all the laws — are open to the private sector and there is legal certainty that investments will be respected.
We are also working on the Lithium Law and the Green Energy Law. All the laws are well advanced and the president presented ten laws at a political summit that took place recently. These are the different laws that the government will introduce, but basically what we are trying to do is encourage private investment in the different sectors that are under State responsibility.

Regarding the United States, as it continues to be a relevant actor in investment, technology and energy innovation at the global level, what specific opportunities do you identify for US investment in the Bolivian energy sector, especially in renewable energy?

We are open to investment and open to the United States; it has always been a very important partner for us at this time. The Electricity Bill places very significant emphasis on renewable energy because previously renewable energy was not taken into account. We are placing a great deal of emphasis on renewable energy because the “sea of gas” that the previous government spoke so much about does not exist. In other words, we do have oil and gas, but in order to exploit them, the conditions for investors must be changed. Therefore, while that is being done, we are promoting investments through renewable energy auctions, mainly in photovoltaic systems.

Before assuming the position of minister, you served as Vice Minister of Electricity and Alternative Energies, acquiring extensive experience in the development of the energy sector and these highly important alternative energies. How will this background influence your vision for promoting sustainability, accelerating the transition toward clean energy and strengthening the development of renewable energies in Bolivia?

I was the first Vice Minister of Electricity in Bolivia. In 2002, I was appointed Vice Minister of Energy; later, the name was changed to Electricity and Alternative Energies. In the current government, I was invited by President Paz Pereira to serve as Vice Minister of Electricity and Renewable Energies. So, I served twice as vice minister and now I am minister.

For us, non-conventional renewable energies are vital because, in the short term, the only way to overcome the energy crisis that Bolivia has — or rather, could have, as we hope and are confident that we will not have it — is through renewable energies, because they have an immediate impact and are short-term solutions.

Returning to generating energy through fossil fuels will take time because wells and related infrastructure must be developed. However, with non-conventional renewable energies, we can work quickly. Under the new law, we have an auction program and through these auctions we will indicate the locations where investment in renewable energy can take place. These auctions will allow private investment to come in; ENDE may also compete, but under the same conditions as private companies. The new laws need to be approved as soon as possible and the direction of the sector needs to be changed, because it has been very closed to private participation. There must be state participation; we have strategic companies such as Yacimientos and ENDE, but we need private investment to come in.