Supreme Decree No. 5549: Expansion of Distributed Generation and the Introduction of a Medium-Scale Renewable Framework
On 18 February 2026, the Bolivian Government enacted Supreme Decree No. 5549, amending the Distributed Generation regime (DS 4477 and DS 5167) and introducing a new regulatory category: Medium-Scale Distributed Generation (1 MW to 6 MW) .
The Decree forms part of Bolivia’s broader policy of energy transition and diversification of the national energy matrix toward renewable sources.
Structural Changes Introduced by DS 5549
Unlike prior reforms focused primarily on small-scale self-consumption systems, DS 5549 expands the regulatory framework to allow larger distributed renewable projects with commercial injection capacity, while maintaining separation from the national dispatch system.
The key innovations include
- Creation of Medium-Scale Distributed Generation (1–6 MW)
Projects in this range:
- inject exclusively into distribution networks;
- do not participate in the national economic dispatch;
- do not require a generation licence or concession;
- operate under regulatory authorisation.
- Stabilised Remuneration Mechanism
The Regulator will determine a stabilised energy price based on efficiency and sustainability criteria.
The National Load Dispatch Committee will incorporate these transactions into the Wholesale Electricity Market framework, with remuneration covered proportionally by demand agents.
- Net Metering Maintained for Small Distributed Generators
Traditional distributed generators continue operating under a net metering system.
- Electric Vehicle Charging Integration
Distributed generation systems are expressly authorised in EV charging stations, linking renewable policy with electromobility strategy.
Regulatory and Contractual Implications
From a legal and operational standpoint, DS 5549:
- formalises contractual obligations between generators and distributors;
- requires certified installation companies;
- places network adaptation costs on generators;
- introduces reporting obligations to the Regulator and Load Dispatch Committee;
- mandates regulatory development within 30 business days.
This signals a move toward greater formalisation and institutional oversight of distributed renewable participation.
Investment and Market Implications
The introduction of a 1–6 MW distributed category creates a new segment between rooftop self-consumption and large-scale generation projects.
Potential implications include:
- increased private investment in solar and hybrid systems;
- improved bankability through stabilised remuneration;
- opportunities for industrial self-generation plus injection;
- expansion of renewable infrastructure linked to logistics and EV charging hubs.
The absence of concession requirements significantly lowers entry barriers for mid-sized renewable projects.
Strategic Outlook
Supreme Decree No. 5549 represents a structural evolution of Bolivia’s distributed generation framework.
By enabling medium-scale renewable participation without full-generation licensing, while introducing stabilised pricing and formal contractual obligations, the Government seeks to balance:
- regulatory control,
- investor predictability,
- network stability, and
- energy transition objectives.
For investors, energy-intensive industries and infrastructure developers, the Decree opens a technically viable and legally structured pathway for mid-scale renewable deployment.
