Iberdrola's Neoenergia to invest $10 billion in power distribution in Brazil

Iberdrola SA

08/05/2026 15:55

By Leticia Fucuchima

SAO PAULO, May 8 (Reuters) - Neoenergia, the Brazilian unit of Spain's Iberdrola IBE.MC, plans to invest 50 billion reais ($10 billion) in its five power distribution companies by 2030 as it seeks to expand in the sector, CEO Eduardo Capelastegui said.

The investment plan, an 82% increase from the previous five-year period, comes alongside the renewal of concessions for four distributors for another 30 years, providing regulatory clarity and underpinning the new spending.

The focus will be on expanding grid infrastructure, connecting more customers and modernizing networks to improve resilience amid more frequent extreme weather events, Capelastegui told Reuters.

He said distribution networks were critical to Brazil's energy transition, enabling electrification, renewable power integration and growth in areas such as data centers and green hydrogen.

Neoenergia could pursue acquisitions if assets become available, he said, adding that Iberdrola sees Brazil as its key emerging market.

Iberdrola was involved in a dispute with Italy's Enel ENEI.MI in 2018 over the acquisition of Eletropaulo, now Enel Sao Paulo, a distributor which is facing proceedings that could lead to the loss of its concession, fuelling speculation that Enel may eventually divest the asset.

Other divestment deals are expected to come to market this year once about 20 distribution concessions are renewed.

($1 = 4.8928 reais)

 (Reporting by Leticia Fucuchima; Writing by Isabel Teles; Editing by Emelia Sithole-Matarise)

 ((Isabel.Teles@thomsonreuters.com;))