The electricity sector in Bolivia was privatized in the early 1990s and was unbundled into generation, transmission and distribution. The supply is dominated by thermal generation (60%), while hydropower (40%) has a smaller share in its generation mix compared to other South American countries (Latin America and the Caribbean, or LAC, average hydropower capacity is 51%. The electricity coverage in rural areas is among the lowest in Latin America and improving it represents a major challenge in the future and requires the joint efforts from both the public and private sectors. Like in other countries, Bolivia’s electricity sector consists of National Interconnected System (SIN) and off-grid systems (known as the Aislado).
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