Iberdrola To Invest 25 Billion Reais In Bahia, Brazil’s Electricity Infrastructure Through 2030

Iberdrola is strengthening its long-term commitment to Brazil with plans to invest around 25 billion reais (nearly €4.5 billion) in electricity infrastructure in the state of Bahia by 2030. The investment will be carried out through its Brazilian subsidiary, Neoenergia, and is aimed at expanding and modernising the region’s power network to support growing electricity demand and accelerate electrification.

The investment programme includes the construction of 54 new substations, more than 2,000 kilometres of high-voltage transmission lines, and approximately 42,000 kilometres of medium-voltage distribution networks. These upgrades are expected to strengthen grid reliability, improve service quality, and support economic growth across Bahia.

The planned investment means that Bahia alone will receive half of Neoenergia’s total network investment budget over the next five years. Following the recent renewal of electricity distribution concessions in Brazil, Neoenergia plans to invest a total of 50 billion reais (€9 billion) in electricity networks across the country, with Bahia emerging as the largest beneficiary of the programme.

The announcement was made by Ignacio Galán during the opening ceremony of the Bahia Farm Show, Brazil’s largest agricultural exhibition. The event brought together several senior government officials and industry representatives, including Geraldo Alckmin, Alexandre Silveira, André de Paula, Jerônimo Rodrigues, Jaques Wagner, and Eduardo Capelastegui.

During his remarks, Galán highlighted the importance of the recent extension of Brazil’s electricity distribution concessions for an additional 30 years. He stated that the renewal provides regulatory certainty and investment predictability, creating favourable conditions for a new cycle of infrastructure development in the country.

Galán also emphasised the role of electrification as a key driver of economic and social development. According to him, expanding electricity infrastructure is essential for building a more competitive, secure, self-sufficient, and sustainable energy system. He noted that investments in power networks generate employment, stimulate local industries, support equipment manufacturing, and create opportunities for workforce training and skills development.

As investment activity increases in Bahia, Galán expressed confidence that the state will continue to play a major role in Brazil’s economic growth. The planned projects are expected to support both industrial expansion and the development of the agricultural sector, which remains a major contributor to the regional economy.

Brazil continues to be one of Iberdrola’s most important international markets. The company has been operating in the country for nearly three decades and currently supplies electricity to more than 40 million people through Neoenergia. The subsidiary operates across 18 states and the Federal District and is recognised as Brazil’s largest electricity distribution group and one of the country’s biggest investors in power infrastructure.

Iberdrola’s presence in Brazil dates back to 1997, when it integrated the electricity distributors Coelba in Bahia and Cosern in Rio Grande do Norte into its operations. Since entering the market, the company has invested more than 120 billion reais (approximately €20 billion) in Brazil, reinforcing its position as one of the country’s leading energy investors.