CAF approves USD 110 million for the construction of Chichas Solar Plant in Bolivia

The Board of Directors of CAF, Development Bank of Latin America and the Caribbean, approved US$110 million in financing for the development of the Chichas Solar Plant, a renewable energy project that reinforces Bolivia's commitment to energy transition and environmental sustainability.

The new solar photovoltaic plant, with an installed capacity of 120 MW, the largest of this technology in the country, will be built in the municipality of Tupiza, Sud Chichas province in the department of Potosí, on an area of 110 hectares in the rural community of Hornillos. The project will be executed by Empresa Nacional de Electricidad (ENDE).

The Chichas Solar Power Plant Project represents a significant milestone in Bolivia's decarbonization strategy, as it will help replace natural gas-based thermoelectric generation with clean solar energy. Once in operation, the plant is expected to generate 279,000 MWh per year of renewable energy, enough to supply the equivalent of 318,000 people (106,000 connections) connected to the National Interconnected System.

"This flagship project demonstrates CAF's unwavering commitment to the energy transition in Latin America and the Caribbean," said Sergio Diaz-Granados, CAF's Executive President. "The Chichas Solar Plant will not only strengthen Bolivia's energy security, but will also generate a direct positive impact on local communities, creating development opportunities and contributing significantly to the reduction of carbon emissions in the region."

CAF's financing will be used for infrastructure and equipment components, which include the solar plant and photovoltaic equipment, the interconnection system to the National Interconnected System, civil and electrical works, and complementary services.

The project is a direct response to the National Interconnected System Expansion Plan (PES) 2024-2050, prepared by Bolivia's Ministry of Hydrocarbons and Energy, which establishes the goal of achieving a 75% share of renewable energy in the national electricity matrix by 2032.

The project will generate multiple far-reaching environmental and social benefits. In environmental terms, it will contribute with an annual reduction of 108,905 tons of CO₂ equivalents, contributing directly to national and international climate targets and promoting clean and sustainable technologies. Social benefits include 318,000 people benefiting from renewable energy, and improved access to energy infrastructure, local economic development in the Tupiza region, and national technical capacity building.

With this project, CAF reaffirms its role as a catalyst for energy transformation in Latin America and the Caribbean, supporting initiatives that build a more sustainable and prosperous future for all the region's inhabitants.