Iberdrola Expands Brazilian Transmission Partnership As GIC Invests In Seven New Projects

Iberdrola has strengthened its position in Brazil’s electricity network sector through its subsidiary Neoenergia by expanding its strategic partnership with GIC, Singapore’s sovereign wealth fund. Under a newly signed agreement, GIC will take a stake in a group of seven transmission projects located across the states of Santa Catarina, São Paulo, Minas Gerais, Rio de Janeiro, Mato Grosso do Sul, Bahia and Rio Grande do Norte.

The investment is valued at about 2.418 billion Brazilian reais (around 412 million euros). This marks the third transaction carried out under the partnership between Neoenergia and GIC. Their collaboration led to the establishment of Neoenergia Transmissão in 2023, a joint venture dedicated to developing and operating electricity transmission network infrastructure in Brazil.

Once this latest transaction is completed, Neoenergia Transmissão becomes one of the five largest electricity transmission companies in the country. The company will manage 16 projects across 12 states, covering approximately 6,710 kilometres of transmission lines. Its capital asset value will reach around 25 billion Brazilian reais (about 4,600 million euros).

Beyond this, Neoenergia operates an additional 1,000 kilometres of power lines, bringing the total network operated by the company to nearly 8,000 kilometres. This agreement further underscores Iberdrola’s long-term commitment to Brazil. It follows the company’s recent purchase of the remaining shares in Neoenergia for 5.826 billion reais (about 980 million euros). The investment aligns with Iberdrola’s strategy of focusing on regulated electricity networks in countries that offer stable, predictable regulatory environments.

The deal is now pending approval from the relevant authorities, including the Administrative Council for Economic Defence (CADE) and the National Electric Energy Agency (ANEEL), as required for transactions of this nature. Iberdrola’s role in Brazil is substantial. With assets of around 120 billion reais (approximately 20.4 billion euros), the company is the country’s leading electricity distribution group, serving more than 45 million people.

Its distribution activities span the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo and Mato Grosso do Sul, as well as the capital, Brasília.The company’s strong dedication to the Brazilian market is reflected in its investments. Over the past year alone, Iberdrola invested more than 30 billion reais (over 5 billion euros), making it the single largest investor in Brazil’s electricity sector.

Through Neoenergia, Iberdrola is active in 18 states and the Federal District, with extensive transmission and distribution networks totalling over 725,000 kilometres of distribution lines and nearly 8,000 kilometres of transmission lines. It also operates around 3,600 MW of renewable power capacity, mainly hydroelectric. Together, these assets highlight the company’s prominent and long-standing presence in Brazil’s energy landscape.