Case study

COBEE is one of the largest power generation companies in Bolivia, accounting for around a third of the country’s power supply. It has been serving the capital La Paz and surrounding areas for over 80 years and currently fulfils the power demand of about 20% of the city’s population. COBEE has over 200 megawatts (MW) of hydroelectric generation, making good use of the glacial waters that fall from the heights of Andes down to the near-tropical lower Miguillas and Zongo valleys. It sells almost all of its output to the distribution companies of La Paz (Electropaz) and Oruro (ELFEO) under two regulated power purchase agreements (PPAs). Any energy not sold under the PPAs is sold in the spot market in offpeak hours. COBEE also owns and operates various transmission lines and three sub-stations. During the political foment of 2005, several of COBEE’s generating plants in the Miguillas Valley were occupied and unable to operate in the short term. While engaging with the local communities to address their concerns, COBEE was able to make up the production shortfall from the unaffected plants in the Zongo Valley, ensuring security of supply. Julio LeMaitre, general manager of COBEE, said: ‘The long-term relationships we have built with the communities in the valleys helped ensure that we could keep our production up and keep the power flowing.’

• Employs around 200 people.
• Bolivian economy growing at around 4% per annum so demand for power is growing too - COBEE has a concession to expand in the Miguillas valley.
• Clean, reliable and safe energy to consumers and industry.
• Investment capital finances improvements, such as upgrades to eight of its 15 plants to facilitate remote operation from the central control room in La Paz.
• Raising standards to obtain Certification of Standard ISO 9001 (Administration), ISO 14001 (Environmental) and OHSAS 18001 (Occupational Health and Safety).
• Successful launch in June 2005 of US$30m worth of local bonds, managed by Bolivia's Credi-Bolsa.
• Community engagement through the 'Foundation COBEE' and assistance to the valley communities with road building, education and health facilities, as well as agricultural outreach programmes advising farmers on crop selection and other matters.
• The reconstruction and expansion in 2006 of the 16MW Santa Rosa generating station will give COBEE the opportunity to obtain certified emission reductions in the global carbon market.