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The investment will expand, modernise and digitalise the electricity network, supporting the connection of new industries, including the agri-food sector
Iberdrola to invest nearly €4.5 billion in electricity networks in Bahia, Brazil, by 2030
Iberdrola will invest nearly €4.5 billion in electrical networks in the state of Bahia (Brazil) by 2030 [PDF] - The announcement was made by Iberdrola Executive Chairman Ignacio Galán at the Bahia Farm Show, Brazil’s leading agricultural trade fair, attended by the country’s Vice-President, the Ministers of Mines and Energy and of Agriculture and Livestock, as well as the Governor of Bahia, among other authorities
- The plan is part of Iberdrola Group’s new investment cycle in electricity networks in Brazil, which will total €9 billion over the next five years following the recent renewal of its distribution concessions
- The investments will support economic and industrial growth, job creation and social development in Bahia and across the other states where Iberdrola operates
Iberdrola is strengthening its commitment to electrification in Brazil with a planned investment of around 25 billion Brazilian reais (almost €4.5 billion) in electricity infrastructure in the state of Bahia by 2030. Through its subsidiary Neoenergia Coelba, the company will build 54 new substations, more than 2,000 kilometres of high-voltage transmission lines and 42,000 kilometres of medium-voltage distribution networks.
As a result, Bahia will receive half of the investment earmarked for electricity networks under Neoenergia’s five-year plan. Following the recent renewal of its distribution concessions, Iberdrola’s Brazilian subsidiary is set to invest a total of 50 billion reais (€9 billion) in network infrastructure across the country.
The announcement was made by Iberdrola’s Executive Chairman Ignacio Galán during the opening ceremony of the Bahia Farm Show, Brazil’s largest agricultural trade fair. Neoenergia has participated in the event for more than a decade. The ceremony was attended by the Vice-President of Brazil, Geraldo Alckmin; the Minister of Mines and Energy, Alexandre Silveira; the Minister of Agriculture and Livestock, André de Paula; the Governor of Bahia, Jerônimo Rodrigues; Senator Jaques Wagner; Neoenergia CEO Eduardo Capelastegui; and other government officials and institutional representatives.
Galán highlighted that the renewal of the distribution concessions for a further 30 years, signed in May, "has been essential in providing the regulatory predictability needed to encourage investment within a framework of legal certainty, such as the one Brazil offers, paving the way for a new investment cycle."
Electrification as a catalyst for development
In his address, Galán underscored the role of electrification in building a more competitive, self-sufficient, secure and sustainable energy system. He described investment in electricity infrastructure as "a true catalyst for development", driving employment, supporting local economies through procurement and supply chains, attracting new industries and creating opportunities for professional training. Against the backdrop of rising investment in the state, he expressed confidence that "Bahia will continue to play a leading role in Brazil’s growth story."
Long-term commitment to Brazil
Iberdrola has been operating in Brazil for nearly three decades and, through Neoenergia, supplies electricity to more than 40 million people. Active in 18 states and the Federal District, Neoenergia is the country’s leading electricity distribution group and the largest private investor in electricity infrastructure. "Brazil is a strategic market for Iberdrola," Galán said. The Group’s presence in Brazil dates back to 1997, when it integrated the distribution companies Coelba, in Bahia, and Cosern, in Rio Grande do Norte. Since then, Iberdrola has invested more than 120 billion reais (approximately €20 billion) in the country.