Galán and President Lula Discuss Iberdrola’s €7 Billion Investment in Brazil’s Energy Transition

Iberdrola's Brazilian subsidiary, Neoenergia, plans to invest 45 billion reais (€7 billion) between 2024 and 2028, reinforcing its commitment to Brazil’s energy transition.

The investment will focus on electric grid modernization and renewable energy expansion, supported by a stable regulatory framework that includes the 30-year renewal of distribution concessions at no additional cost.

During a meeting in Brasília, Iberdrola Chairman Ignacio Galán met with President Luiz Inácio Lula da Silva, reaffirming Iberdrola’s support for Brazil’s clean energy goals and its upcoming role in COP30, set to be hosted by Brazil in 2025. Also present were key government officials and Neoenergia CEO Eduardo Capelastegui.

Neoenergia, Brazil’s largest electricity distributor, supplies power to over 40 million people through a network spanning 730,000 kilometers across 18 states and the Federal District. Its five distribution companies—Neoenergia Coelba, Pernambuco, Cosern, Elektro, and Brasília—play a critical role in the nation’s energy infrastructure.

With 4,500 MW of installed capacity, including 3,900 MW of renewables, Neoenergia is a major player in Brazil’s clean energy transition. Its regulated network assets are valued at €10.3 billion, representing 27% of Iberdrola’s total, behind only the UK and the US.

Neoenergia also leads in social responsibility through the Neoenergia Institute, fostering sustainable development and improving the quality of life in vulnerable communities. The company employs 16,000 people and has added over 7,000 new hires in the past four years, underscoring its role as a key contributor to Brazil’s energy future.