Neoenergia, the Brazilian subsidiary of Iberdrola, has announced plans to invest approximately €2.22 billion (13.8 billion Brazilian reais) to expand, modernise and digitalise electricity distribution networks in the states of Pernambuco and Rio Grande do Norte by 2030.
The investment plans were unveiled during business meetings held in Recife and Natal, attended by Iberdrola CEO Pedro Azagra, Neoenergia CEO Eduardo Capelastegui, Neoenergia Pernambuco Chairman and CEO Saulo Cabral, and Neoenergia Cosern Chairman and CEO Fabíola Almeida. The initiative aims to strengthen grid infrastructure, meet rising electricity demand and support long-term economic development across both states.
Under the plan, Neoenergia Pernambuco will invest 9.7 billion reais (€1.56 billion) by 2030, more than doubling investments made during the previous regulatory cycle. The programme includes the construction of 25 new substations, expansion of 34 existing substations, addition of 766 MVA of grid capacity, deployment of over 9,000 kilometres of medium- and high-voltage power lines, and installation of 141 new feeder lines.
The company said the investments will support industries including tourism, manufacturing and agribusiness across the state. Planned projects include underground electricity networks in historic areas of Recife, modernisation of the Boa Viagem distribution network, upgrades to power infrastructure serving Pernambuco Carnival venues, and the deployment of smart grid, energy storage and solar generation projects in Fernando de Noronha.
Meanwhile, Neoenergia Cosern will invest 4.1 billion reais (€660 million) in Rio Grande do Norte, representing an 81% increase compared with the 2021–2025 investment cycle. The programme includes the construction of 10 new substations, expansion of 16 existing substations, addition of 460 MVA of capacity, and installation of approximately 1,800 kilometres of new power lines.
The investments will include a new transmission line serving northern Natal, underground electricity networks in Mossoró, Pipa and Ponta Negra, as well as grid expansion projects supporting tourism, agribusiness, mining, and the oil and gas sector. The company will also invest in grid digitalisation, automation, energy efficiency initiatives and solar generation projects benefiting vulnerable institutions and communities.
Neoenergia said the investment programme forms part of its broader strategy to modernise electricity distribution infrastructure, enhance grid resilience and reliability, and support the economic and social development of Pernambuco and Rio Grande do Norte through the end of the decade.
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