Neoenergia, the Brazilian unit of Spanish power utility Iberdrola, has secured early renewals for three power distribution concessions and announced a USD 10.2-billion investment cycle through 2030, Neoenergia announced on Friday.
The concession contracts for Neoenergia Coelba, Neoenergia Cosern, and Neoenergia Elektro have been renewed for 30 years, following the October 2025 renewal of the Neoenergia Pernambuco concession, which was extended until 2060.
Neoenergia said that 46% of its USD 10.2-billion investment plan will go towards building out infrastructure, 40% will go towards equipment improvements and modernisation, and 14% will be spent on measures to reduce power losses.
“The early renewal made possible by the government, through the Ministry of Mines and Energy, recognises the consistency of our performance and creates conditions for us to continue investing with predictability, legal and regulatory certainty, and, above all, customer focus,” said Neoenergia CEO Eduardo Capelastegui.
The planned disbursement represents an 82% increase over the company’s 2021-2025 investment cycle, which totalled USD 5.6 billion, according to the announcement. Projects will include the construction of 18 substations along the Bahia coast and 10 substations in the state’s hinterland to supply agribusiness customers.
Neoenergia is an Iberdrola subsidiary that operates in Brazil across power generation, transmission, distribution and commercialisation, serving approximately 17 million customers.
