During a significant meeting held this morning in Brasilia, Iberdrola Chairman Ignacio Galán reaffirmed his company’s strong commitment to Brazil’s energy transition. The meeting, which took place with President Luiz Inácio Lula da Silva, was attended by key government officials including the Ministers of Mines and Energy, Alexandre Silveira, and the Civil House, Rui Costa. Also present was Eduardo Capelastegui, the CEO of Neoenergia, Iberdrola’s subsidiary in Brazil.
This gathering highlighted Iberdrola’s dedication to supporting Brazil’s transition to a more sustainable energy future. A core topic of discussion was Neoenergia’s substantial investment plans for the Brazilian market, which include an impressive investment of over 7 billion euros (45 billion reais) between 2024 and 2028. This investment is tied to the country’s regulatory framework for electricity grids, particularly the renewal of distribution concessions. The renewal, set to conclude in the first half of 2025, marks a significant milestone in enhancing the stability and predictability of Brazil’s electricity sector, ensuring the continuity of services for millions of citizens. The distribution concessions will be renewed for a term of 30 years, with no additional costs associated.
Galán also took the opportunity to express Iberdrola’s strong support for Brazil’s upcoming hosting of COP30 in 2025, a major international event dedicated to climate action. He emphasized that the company’s efforts are in alignment with the global climate agenda, reinforcing Iberdrola’s commitment to sustainable energy solutions.
Iberdrola, through Neoenergia, plays a pivotal role in Brazil’s energy landscape. As the leading electricity distributor in the country, Neoenergia serves over 40 million Brazilians across 18 states and the Federal District. The company’s extensive infrastructure includes nearly 730,000 kilometers of power lines, underscoring its critical role in providing reliable electricity across the nation. With five major electricity distributors—Neoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP/MS), and Neoenergia Brasília (DF)—the company has a robust presence in the country.
Beyond its distribution network, Iberdrola has made significant strides in renewable energy generation in Brazil. The company’s installed capacity in the country stands at around 4,500 MW, of which 3,900 MW is sourced from renewable energy. This strong renewable energy portfolio positions Iberdrola as a key player in Brazil’s transition to cleaner energy sources.
Iberdrola’s Brazilian subsidiary is also a key contributor to the country’s economic landscape. At the end of the third quarter, Neoenergia’s regulated network asset base in Brazil was valued at €10.3 billion, accounting for 27% of Iberdrola’s total regulated network assets. This makes Brazil one of Iberdrola’s most important markets, second only to the United Kingdom and the United States in terms of asset base value.
In addition to its investment in energy infrastructure, Iberdrola places a strong emphasis on social responsibility and sustainable development. Through the Neoenergia Institute, the company has been active in promoting socio-environmental initiatives aimed at improving the quality of life for the communities in which it operates. These programs are particularly focused on supporting vulnerable populations, with a continued commitment to fostering sustainable development in line with Brazil’s broader environmental goals.
Iberdrola’s positive impact in Brazil extends beyond its energy generation and distribution activities. The company has made a significant contribution to local employment, hiring over 7,000 workers in the past four years, bringing its total workforce in Brazil to nearly 16,000 employees. This investment in human capital is part of Iberdrola’s long-term strategy to contribute to both the country’s energy transition and economic development.
With its substantial financial investments, commitment to renewable energy, and focus on sustainable development, Iberdrola, through Neoenergia, remains a steadfast partner in Brazil’s energy transition. The company’s operations in Brazil continue to align with the nation’s ambitious goals for sustainable energy, and the ongoing collaboration with government officials, such as President Lula and Minister Silveira, underscores the importance of this partnership for the country’s energy future. Iberdrola’s ongoing investment in Brazil reflects a deep commitment to helping the nation meet its energy needs while supporting its broader environmental and social objectives.
