A Massive Construction Programme for Neoenergia Coelba
The investments will be deployed through Neoenergia Coelba, Iberdrola’s Brazilian subsidiary operating in the state of Bahia. Against a backdrop of sustained momentum in electricity infrastructure across Latin America, as illustrated by the renegotiation of a 672 MW hydroelectric contract in Venezuela, network needs in the region remain significant. According to the group, the programme includes the construction of 54 new substations, more than 2,000 kilometres of high-voltage transmission lines and 42,000 kilometres of medium-voltage distribution networks. Bahia’s allocation represents half of Neoenergia’s total five-year plan for Brazil, whose overall envelope reaches 50 billion reais (€9 billion). While the regulated concession model is Iberdrola’s chosen framework in Brazil, other contractual structures also drive electricity sector investment, such as the power purchase agreements (PPAs) recently concluded by the Burlington Electric Department in New England.
The plan is underpinned by the renewal of the group’s distribution concessions in Brazil, signed in May for a period of 30 years. Galán stated that this renewal “has been essential in providing the regulatory predictability needed to encourage investment within a framework of legal certainty, such as the one Brazil offers, paving the way for a new investment cycle.” The group indicates that these commitments aim to support economic and industrial growth, job creation and social development, both in the state of Bahia and in the other Brazilian states where Neoenergia is active.
Executives and Government Officials Gathered for the Announcement
Eduardo Capelastegui, Chief Executive of Neoenergia, was among the participants at the ceremony, alongside Senator Jaques Wagner and other institutional representatives. Iberdrola states that Neoenergia has participated in the Bahia Farm Show for more than a decade, reflecting the subsidiary’s embeddedness in the local economic fabric. The announcement follows the concession renewal process which, according to the group, establishes the contractual basis for deploying the 50 billion reais (€9 billion) committed to Brazilian networks over five years.