Iberdrola will invest nearly €4.5 billion in electrical networks in the state of Bahia (Brazil) by 2030

Iberdrola is reinforcing its commitment to electrification in Brazil with an investment plan of around 25 billion reais (almost 4.5 billion euros) in electricity infrastructure in the state of Bahia up to 2030. The plan, carried out through its subsidiary Neoenergia Coelba, includes 54 new substations, over 2,000 kilometres of high-voltage lines and 42,000 kilometres of medium-voltage networks.

As a result, the state of Bahia will receive 50% of the investment in electrical networks planned over the next five years by Iberdrola’s Brazilian subsidiary, Neoenergia, which will total 50 billion reais (9 billion euros) following the recent renewal of its distribution concessions in the country.

The announcement was made by Iberdrola’s Executive Chairman, Ignacio Galán, during his opening speech at the Bahia Farm Show, Brazil’s largest agricultural fair. The opening of the event, in which Neoenergia has participated for over a decade, was also attended by the Vice-President of the Federative Republic of Brazil, Geraldo Alckmin; the Minister of Mines and Energy, Alexandre Silveira; and the Minister of Agriculture and Livestock, André de Paula; the Governor of Bahia, Jerônimo Rodrigues; the Minister of the Environment, Water and Energy, ; and the Senator for Bahia, Jaques Wagner, amongst other authorities and institutional representatives, as well as Neoenergia’s CEO, Eduardo Capelastegui.

Ignacio Galán noted that the signing of the renewal of distribution concessions for a further 30 years last May “has been key to ensuring predictability through regulations that encourage investment within a framework of legal certainty, such as that which exists in Brazil, thereby driving the start of a new investment cycle”. 

Electrification as a driver of development

During his speech, Ignacio Galán highlighted the role of electrification in moving towards a more competitive, self-sufficient, secure and sustainable energy model, and emphasised that investment in electricity infrastructure is “a genuine driver of development”, employment and the revitalisation of the local economy thanks to equipment purchases, the creation of new industries and the training of professionals. For this reason, and in the context of the expected increase in investment in the state, Iberdrola’s Executive Chairman expressed his confidence that “Bahia will continue to play a leading role in Brazil’s growth”.

Long-term commitment to Brazil

Iberdrola has been operating in Brazil for almost three decades and supplies electricity to over 40 million people through Neoenergia. The Group’s Brazilian subsidiary, which operates in 18 states and the Federal District, is the country’s leading electricity distribution group and the company that invests the most in electricity infrastructure. “Brazil is a strategic market for Iberdrola,” said Galán. Iberdrola’s history in Brazil began in 1997 with the integration of the distribution companies Coelba (in Bahia) and Cosern (in Rio Grande do Norte). Since then, the company has invested over 120 billion reais (20 billion euros) in the country.