Iberdrola wins a high-voltage substation in Brazil, with an investment of more than 100 million euros
Iberdrola, through its subsidiary Neoenergia, continues to accelerate its commitment to Brazil. The group, which has once again demonstrated its competitiveness in a hard-fought auction on the São Paulo stock exchange, was awarded the construction and commissioning of a substation to be located in Ibiraci, in the state of Minas Gerais.
The award was granted by the Agência Nacional de Energia Elétrica (ANEEL), Brazil's electricity system regulator, in an international tender aimed at attracting investment to upgrade and expand the country's transmission networks and in which the award prices were, on average, 66% lower than market forecasts.
The project consists of the 500,000-volt Estreito substation and features three -300/+300 Mvar synchronous compensators. The installation will provide greater reliability and operational flexibility in critical scenarios of high energy imports by the southeast region, as well as guaranteeing voltage control in São Paulo's high and medium voltage system. The maximum deadline for the entry into commercial operation established by ANEEL is 48 months, to be met in March 2026, although this deadline is expected to be brought forward.
In line with the company's strategy, the investment, estimated at around 103 million euros, represents a significant increase in revenue generation and strategically expands the company's area of operation in the southeast region. Some 1,700 direct jobs and numerous indirect jobs will be created during the construction of the project.
In order to strengthen Neoenergia's presence in the transmission market, the awarded asset presents synergies during the construction period with other projects of the company, which contributed to the detailed study prepared by the company prior to the auction.
Iberdrola, through its subsidiary Neoenergia, continues to accelerate its commitment to Brazil. It manages a distribution network of 540,417 km, covering a population of 34 million people. Neoenergia also has more than 3,730.3 megawatts (MW) of renewable energy in operation and provides electricity service to 15.7 million customers.
The new transmission projects that the company will be commissioning in the coming years will follow the group's brand of efficiency and produce a secure return for its shareholders, maintaining the focus on the business and generating an even more predictable cash flow. In addition, the group maintains its track record and commitment to investment and growth in the country.
The decarbonisation of the economy and digital innovation bring with them distribution networks for new electricity consumption models. Smart grids make possible a new interconnected map that responds to the needs of users and guarantees the incorporation of more renewables, an essential pillar for the energy transition.
With Iberdrola's new investment plan, announced until 2030, the value of the group's regulated assets will rise to 60 billion euros.
Following the acquisition of Neoenergia Brasilia, Iberdrola continues to invest heavily in distribution. This investment commitment is not limited to ensuring the country's economic growth, but encompasses all social areas. The company promotes local suppliers and collaborates with the communities in which it operates. The group has set itself the 2030 target of bringing electricity to more than 16 million people who currently lack access to this energy source, as part of its Electricity for All programme. It also has schools for electricians, in which it seeks professional inclusion and gender equality.
