Iberdrola SA's Brazilian subsidiary has received a new loan from the European Investment Bank (EIB) to modernize the electricity grid in São Paulo and Mato Grosso do Sul. The BRL 857 million (approximately $170 million) funding will support the renovation and modernization of distribution lines, substations, and grid automation systems. This follows a previous BRL 1.7 billion green financing agreement for grid upgrades in Bahia, highlighting Iberdrola's ongoing commitment to infrastructure development in Brazil.
The new financing, guaranteed by Spain's Cesce export credit agency, is intended to support a 2027-30 investment program totaling around EUR 342 million. Neoenergia Elektro, the company responsible for the project, serves over three million customers across 223 municipalities in São Paulo and five in Mato Grosso do Sul. The initiative aligns with the European Union's Global Gateway Investment Agenda, aiming to promote climate-aligned infrastructure and sustainable growth.
Iberdrola has also announced a BRL 25 billion investment plan to upgrade its infrastructure in Bahia by 2030, focusing on the Far West region, a key agricultural hub. This investment is expected to significantly boost local energy capacity and support Brazilian agribusiness. The company's broader strategy includes nearly BRL 50 billion in investments over the next decade to expand and modernize its networks in Brazil, emphasizing digitalization and resilience against climate-related challenges.