Iberdrola will strengthen its commitment to electrification in Brazil with an investment plan of nearly 25 billion reais, equivalent to almost €4.5 billion, in electrical infrastructure in the state of Bahia until 2030.
The plan will be executed through Neoenergia Coelba, Iberdrola’s Brazilian subsidiary, and includes the construction of 54 new substations, more than 2,000 kilometers of high-voltage lines, and 42,000 kilometers of medium-voltage networks.
Bahia will account for 50% of the plan
With this announcement, Bahia will receive half of the investments in power distribution networks planned by Neoenergia for the next five years. The Brazilian subsidiary’s total plan will reach 50 billion reais, equivalent to approximately €9 billion, following the recent renewal of its distribution concessions in the country.
The announcement was made by Ignacio Galán, Executive Chairman of Iberdrola, during the opening of the Bahia Farm Show, considered Brazil’s largest agricultural fair.
Brazilian authorities also participated in the event, including Vice President Geraldo Alckmin, Minister of Mines and Energy Alexandre Silveira, Governor of Bahia Jerônimo Rodrigues, and Neoenergia CEO Eduardo Capelastegui.
Power grids to drive electrification
During his speech, Galán highlighted that electrification is essential for moving toward a more competitive, self-sufficient, secure, and sustainable energy model.
The executive noted that investments in electrical infrastructure act as a driver for local development by boosting equipment purchases, creating new industries, generating jobs, and training specialized professionals.
Iberdrola considers that the expansion and modernization of networks will be essential to meet the growing demand for electricity in Bahia, a state with strong agricultural, industrial, and renewable activity.
Concessions renewed for 30 years
Galán also recalled that the renewal of distribution concessions for an additional 30 years, signed in May, was key to opening a new investment cycle in Brazil.
According to Iberdrola, this framework offers regulatory predictability and legal certainty, conditions necessary to accelerate large-scale power grid investments.
Neoenergia renewed significant concessions such as Coelba in Bahia, allowing for the planning of long-term investments in network expansion, digitalization, and strengthening.
Brazil remains a strategic market
Iberdrola has been present in Brazil for nearly three decades and serves more than 40 million people through Neoenergia. The company operates in 18 states and the Federal District, establishing itself as the country’s leading electricity distribution group.
Iberdrola’s history in Brazil began in 1997 with the integration of the distributors Coelba in Bahia and Cosern in Rio Grande do Norte.
Since then, the company has invested more than 120 billion reais in the country, equivalent to approximately €20 billion. With this new plan, Bahia is positioned as one of the central territories for Iberdrola’s electrical expansion in Latin America.
Source: https://www.iberdrola.com/
Photo: Shutterstock
