Iberdrola to Invest Nearly $5B in Brazilian State of Bahia by 2030

Iberdrola SA said it will build new electricity infrastructure representing an investment of BRL 25 billion ($4.94 billion) in Brazil's northeastern state of Bahia by 2030.

"Through its subsidiary Neoenergia Coelba, the company will build 54 new substations, more than 2,000 kilometers [1,242.74 miles] of high-voltage transmission lines and 42,000 kilometers of medium-voltage distribution networks", the Spanish power and gas utility said in a press release.

"As a result, Bahia will receive half of the investment earmarked for electricity networks under Neoenergia's five-year plan.

"Following the recent renewal of its distribution concessions, Iberdrola's Brazilian subsidiary is set to invest a total of 50 billion reais (EUR 9 billion) in network infrastructure across the country".

Iberdrola said it currently powers over 40 million people in the South American country, where it is active in 18 states and the Federal District. "Neoenergia is the country’s leading electricity distribution group and the largest private investor in electricity infrastructure", Iberdrola said.

Under an updated global investment plan it unveiled September 24, 2025, under which Iberdrola plans to spend EUR 58 billion by 2028, the company earmarked EUR 7 billion ($8.13 billion) for Brazil. The plan focuses on expanding Iberdrola's regulated networks business.

Last May Iberdrola said it expects to invest nearly BRL 50 billion through 2030 to expand its networks business in Brazil.

"This investment effort will drive the digitalization of the networks, strengthen supply quality and expand its capacity to meet growing energy demand", Iberdrola said May 8.

"The new plan almost doubles the 27.5 billion reais invested over the last five-year period (2021-2025) and ushers in a new phase of growth based on the expansion, modernization and digitalization of electricity infrastructure", Iberdrola said.

Iberdrola launched the new investment cycle for Brazil following the formalization of early renewal for three power distribution concessions in the country. Besides Neoenergia Bahia, the other two are Neoenergia Cosern (Rio Grande do Norte) and Neoenergia Elektro (São Paulo and Mato Grosso do Sul).

"The extensions, which run for 30 years, add to the renewal obtained in 2025 for Neoenergia Pernambuco, in force until 2060, and to the original concession for the Federal District of Brasília (Neoenergia Brasília), granted in 2021 through to 2045", Iberdrola said.

As of the first quarter (Q1) Brazil was Iberdrola's second-biggest market for distributed electricity, accounting for 20,485 gigawatt hours (gWh), according to the company's quarterly report.

Iberdrola had an installed generation capacity of 4.2 GW in Brazil at the end of the first quarter. Renewables, mostly hydro plants, accounted for 3.65 GW, while gas combined-cycle plants contributed 550 megawatts.

In Q1 Brazil contributed EUR 2.27 billion in revenue to Iberdrola's energy distribution business.

Additionally Brazil delivered EUR 107.6 million in Q1 revenue for Iberdrola's "power and customers" business, which involves power and gas retail.

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