IFC backs EDP with $301m for Mexico solar power and Brazil electricity upgrades

In Mexico, IFC provided a $222 million loan to support the development of a 200-megawatt solar photovoltaic power plant, adding renewable generation capacity as demand for electricity grows.

A new solar plant in Mexico and an upgraded electricity network in Brazil will receive support from two IFC investments totalling $301 million with global energy company EDP. The financing addresses two connected needs: producing more clean power and strengthening the networks that carry electricity to homes and businesses.

IFC, a member of the World Bank Group, expects the investments to improve electricity access and supply for approximately 200,000 people, support the creation of more than 4,400 jobs and cut annual emissions by an estimated 297,000 tonnes of carbon dioxide equivalent.

Mexico solar project receives $222 million loan

In Mexico, IFC provided a $222 million loan to support the development of a 200-megawatt solar photovoltaic power plant, adding renewable generation capacity as demand for electricity grows. The loan forms part of a $444 million financing package supporting EDP's renewable energy operations globally. Spain's state financial agency, Instituto de Crédito Oficial, known as ICO, is providing half of that package.

For EDP, the investment connects its energy transition plans with the practical needs of communities and local economies. Group Chief Financial Officer Rui Teixeira said the partnership with IFC supports access to reliable, affordable and clean energy, alongside infrastructure improvements and job creation. He described the cooperation as a way to direct capital towards investments capable of delivering stronger economic and community benefits.

Brazil grid investment supports 1.8 million customers

IFC's second investment, worth about $79 million, will help EDP Espírito Santo modernise and expand its electricity network. As the Brazilian state's largest electricity distributor, the company serves more than 1.8 million customers who are expected to benefit from more reliable service. The investment was made alongside local institutional investors, bringing additional private capital into infrastructure that households, public services and businesses depend on every day.

EDP's Brazilian subsidiary also participates in the IFC Future Grids Alliance, an advisory and knowledge-sharing programme supporting investment in grid modernisation and reliability across emerging markets. New power plants add capacity, but dependable networks are essential for that electricity to reach customers and support productive activity.

Ines Rocha, IFC's Division Director for Western Europe, Central and Eastern Europe, Ukraine and Moldova, said the transactions deepen its strategic partnership with EDP at a time of rapidly growing global power demand. She linked reliable energy access with stronger productivity, employment and economic growth for businesses and communities.

Rising electricity demand brings a larger financing challenge

Emerging economies are expected to account for almost two-thirds of global electricity demand by 2035, increasing pressure to build enough capacity to power industries, sustain services and support international competitiveness.

Meeting that demand will require annual investment in electricity generation in developing countries to more than double to $630 billion. More than half of the financing will need to come from the private sector, making partnerships between development institutions, energy companies and investors an important part of the response.

The World Bank Group has committed nearly $100 billion to energy over the past decade. Its latest investments with EDP bring that broader financing effort into specific projects, pairing new solar generation in Mexico with network improvements in Brazil that can help customers receive a more dependable electricity supply.