IDB Invest Finances 20 MW Off-Grid Solar for Potosí Communities

In a significant move to advance clean energy access and sustainable development, IDB Invest has announced financing for a 20 MW off-grid solar photovoltaic (PV) project set to transform the energy landscape for remote communities in Potosí, Bolivia. This initiative targets one of Bolivia’s most isolated departments, bringing reliable, affordable electricity to thousands of households and small businesses for the first time.

The Challenge: Powering Bolivia with Potosí off-grid solar

The department of Potosí, known for its stunning high-altitude landscapes, faces unique developmental challenges. With rugged terrain and a sparsely distributed population, extending the national electricity grid is often economically and logistically unviable. Consequently, many communities have historically relied on expensive, polluting, and unreliable diesel generators for their power needs.

Potosí currently has Bolivia’s lowest rural electrification rate, with access at approximately 70%. This energy gap hinders economic growth, limits educational opportunities, and impacts the quality of life. The high cost of diesel-generated electricity, often exceeding $0.25 per kWh, places a heavy burden on local economies. This project directly addresses that disparity by harnessing one of the region’s most abundant resources: the sun.

A Landmark Investment in Clean Energy Access with Potosí off-grid solar

IDB Invest, the private-sector institution of the Inter-American Development Bank (IDB) Group, is providing a loan of up to $25 million to spearhead the project. This financing is a key component of IDB Invest’s broader commitment to mobilize $1 billion for renewable energy projects across Latin America by 2025.

Developed by a Bolivian renewable energy firm, the project is a model of modern off-grid solutions. Here are the key details:

• Technology: The initiative will install 20 MW of ground-mounted solar panels across multiple communities. Crucially, it will be paired with an estimated 10-15 MWh of Battery Energy Storage Systems (BESS) and managed through localized microgrids. This combination ensures a stable, 24/7 power supply, even when the sun isn’t shining.
• Location Advantage: Potosí boasts exceptional solar irradiance levels, exceeding 5.5 kWh/m²/day, making it an ideal location for high-yield solar generation.
• Timeline: Construction is slated to begin in the second quarter of 2026, with the project expected to be fully operational by late 2027.

Transforming Lives and Livelihoods with Potosí off-grid solar

The impact of this 20 MW project is projected to be profound, extending far beyond simply keeping the lights on. By displacing fossil fuels and providing consistent power, the initiative will catalyze significant positive change.

• Economic Empowerment: Approximately 10,000 households and small businesses will gain access to electricity, with energy costs expected to decrease by up to 50%. This will free up capital for families and enable local entrepreneurs to thrive. The project will also create an estimated 300 jobs during construction and 50 permanent positions for ongoing operations.
• Environmental Sustainability: By replacing diesel generators, the project is expected to avoid approximately 25,000 tons of CO₂ emissions annually. It represents a concrete step forward in Bolivia’s commitment to climate action.
• Social Development: Reliable electricity is fundamental for modern healthcare, education, and communication. This project will improve living standards and connect remote communities to new opportunities.

A Blueprint for the Future: Potosí off-grid solar

This initiative is perfectly aligned with Bolivia’s national strategic goals, including the National Electrification Plan (PEN), which aims for 100% rural electrification by 2030, and its commitments under the Paris Agreement to achieve 60% renewable energy generation.

Furthermore, the Potosí project serves as a powerful and scalable blueprint for other regions facing similar challenges. By demonstrating the viability of large-scale off-grid solar-plus-storage systems in the Andes, it paves the way for replication in remote areas of Peru, Ecuador, and beyond. The project’s design even accounts for regional challenges, such as the effects of high altitude (averaging 4,000 meters) on equipment and water scarcity, which will be addressed with advanced dry-cleaning technologies for the panels.

As this project moves from financing to construction, it stands as a testament to the power of public-private partnerships in driving an equitable and sustainable energy transition. For the latest updates, stakeholders can refer to announcements from IDB Invest and Bolivia’s Ministry of Energy and Hydrocarbons.