Iberdrola’s leadership, represented by Ignacio Sánchez Galán, reaffirmed the company’s commitment to Brazil during discussions around the presidency of Luiz Inácio Lula da Silva. The group outlined a substantial program of investments in Brazil that aims to strengthen the country’s electrical grid. The plan envisions more than 8,000 kilometers of transmission and distribution lines, supported by a yearly investment near 1.9 billion dollars in the Brazilian market, with projections to sustain this pace through to 2030.
Galán underscored a robust investment trajectory, noting an annual spend of about 10,000 million reais. For 2025, the plan foresees an investment range of 30,000 to 35,000 reais, and the expectation is that this rate will persist under comparable conditions up to 2030. He spoke with reporters ahead of an opening ceremony, describing Brazil as a favorable business climate for continued commitments. He highlighted Brazil’s strong institutions and the independence of those institutions as a foundation for ongoing investment, recalling Lula’s support for the autonomy of the Central Bank and regulatory bodies during his first two terms.
The executive also disclosed a recent meeting with Finance Minister Fernando Haddad, emphasizing the aim to foster a stable and predictable environment for business activity. The discussion touched on tax reform as a central policy objective of Lula’s administration, with the minister describing the reform as a means to improve tax collection while keeping the system simple and fair. The approach is to reorganize the tax framework to be more uniform and understandable, benefiting companies while ensuring the government collects its share. Galán stated that Iberdrola is prepared to contribute its part, while noting that the specific details of the reform remain to be clarified and could influence the accounts of Neoenergia, Iberdrola’s Brazilian subsidiary. Among upcoming investments, Galán mentioned participation in two tender processes scheduled for June and October, aimed at expanding the transmission network.
renewable complex.
In a high-profile event, Brazilian President Luiz Inácio Lula da Silva attended the opening of the Neoenergia Renewable Complex in Santa Luzia, in the state of ParaÃba, alongside his spouse. The project represents Iberdrolaâs largest renewable energy initiative in Latin America, featuring a wind and solar complex with an installed capacity of 0.6 gigawatts. The Santa Luzia installation required an investment of about 3.5 billion reais, roughly equivalent to 6.65 billion U.S. dollars, illustrating the scale and impact of Iberdrola’s regional strategy for renewable energy in the Northeastern region of Brazil.
Discussions in the region also touched on Iberdrola’s broader footprint in Latin America. Galán noted that while the company continues to evaluate opportunities, activity in Mexico has cooled due to political changes. The firm signaled that recent governmental shifts have made fresh investment less attractive than in the past, reflecting a broader consideration of risk and return in the Mexican market. This acknowledgment aligns with Iberdrola’s cautious approach to selecting markets that offer stable regulatory environments and long-term growth potential.