Bolivia protects the environment with CO2 reduction through CAF-funded hydropower plant

Two years after commissioning, the San José hydropower generator in Bolivia, 33% financed with a loan from CAF—development bank of Latin America—, is helping protect the environment by displacing the use of more than 8,000 million cubic feet (MMPC) of natural gas per year in thermal power plants, with the subsequent and significant reduction of carbon dioxide (CO2) emissions in the country.

The San José hydropower plant is made up of two generation facilities, San José 1 and San José 2, with an approximate combined generation of 684,740 MWh/year of clean and renewable energy, which are transmitted into the National Interconnected System (SIN) to meet the nation’s energy demand safely.

CAF prioritizes supporting investments in renewable and efficient energy projects such as San José, which contribute to the shift in the energy matrix, help reduce CO2 emissions and honor the 2015 Paris agreement, while complying with the electricity contributions determined in Bolivia.

According to the Bolivian Chamber of Electricity, until 2019, a total of 61.7% of energy was generated domestically through thermal plants, from natural gas and 38.3% from renewable sources (34% hydro, 1.6% biomass, 1.9% solar and 0.7% wind).

The San José hydropower facility, with its two plants, currently boasts a total generation capacity of 124 MW, enough to meet 10% of Bolivia’s domestic electricity demand. The total cost of the project was USD 287.52 million, of which CAF financed USD 94.88 million.

The Optimal Expansion Plan of the National Interconnected System 2012–2022 (POES), described the San José Hydropower Project as most beneficial for the interests of the country, given the use of the turbinated water from the Corani and Santa Isabel power plants, in the department of Cochabamba.

This hydropower plant helps develop a surplus in electricity reserves, as required by regulations, and also ensure the nation’s energy demand. This surplus, as per national policies, could be directed to the export market, thus bringing important foreign exchange into the country. The San José plant has created to date more than 1,000 direct jobs throughout the entire process (construction and operation).

The generation of San José accounts for approximately 25% of the hydro generation capacity, making the future Corani-Santa Isabel-San José complex the largest in Bolivia, since it now provides a volume of energy close to 20% of the current generation capacity of the country.

In addition, the two plants in this hydropower complex have expanded the outflow of the Corani reservoir, thus leveraging the use of the dammed water. Another advantage came from the know-how and experience arising from its automation (remote management or operation) for a subsequent implementation and application in other hydro plants, such as Corani and Santa Isabel.

These investments in renewable energy are part of CAF’s commitment to working in favor of sustainable development and Latin American integration as fundamental pillars to achieve an increasingly inclusive, climate change resilient society and financial system, with positive impacts on ecosystems.