EIB and Neoenergia Back €342M Grid Upgrade to Strengthen Brazil’s Power Network

According to EIB Vice President Ioannis Tsakiris, modern and dependable electricity networks play a central role in meeting climate objectives and securing reliable energy access.

Electricity networks across parts of Brazil are set for a major upgrade after the European Investment Bank (EIB), through EIB Global, and Neoenergia signed a €150 million financing agreement to modernise power distribution infrastructure serving millions of customers in the states of São Paulo and Mato Grosso do Sul.

The funding will support a broader investment programme worth approximately €342 million, scheduled for implementation between 2027 and 2030. Backed by a guarantee from Spain's export credit agency, Cesce, the operation marks the first EIB-financed project with Neoenergia supported through a Cesce guarantee for a green investment led by a Spanish subsidiary outside Spain.

The initiative reflects growing cooperation between European and Brazilian institutions in developing cleaner and more resilient energy infrastructure. It also supports the European Union's Global Gateway strategy, which promotes sustainable infrastructure projects and stronger international partnerships.

Major Modernisation Drive for Electricity Distribution

The investment programme focuses on upgrading and expanding the electricity distribution network operated by Neoenergia Elektro, which supplies power to more than 3 million customers across 223 municipalities in São Paulo and five municipalities in Mato Grosso do Sul.

Planned investments include the refurbishment of distribution lines, improvements to substations, upgrades to control and protection systems, expanded network automation and measures designed to reduce technical energy losses. These actions are expected to improve service reliability, strengthen resilience during extreme weather events and increase the network's ability to accommodate growing electricity demand.

The modernised infrastructure will also make it easier to connect new users, including low-income households and renewable energy projects seeking access to the electricity grid.

Supporting Clean Energy and Climate Goals

According to EIB Vice President Ioannis Tsakiris, modern and dependable electricity networks play a central role in meeting climate objectives and securing reliable energy access. He noted that the investment will improve electricity services for households and businesses, support the integration of renewable energy sources and contribute to Brazil's long-term climate agenda.

Neoenergia CEO Eduardo Capelastegui described the agreement as an important step in the company's record investment programme for Neoenergia Elektro. He said growing electrification across the economy requires digital, efficient and resilient networks capable of handling new energy demands without compromising service quality for customers.

Cesce CEO Pablo de Ramón-Laca said the project demonstrates how cooperation between financial institutions and private companies can direct sustainable investment into infrastructure that supports economic development, local communities and renewable energy growth.

European Union Ambassador to Brazil Francisco André said the project transforms shared climate commitments between Brazil and the European Union into practical action through investments that strengthen grid reliability, energy inclusion and renewable energy integration.

Contribution to Brazil's Energy Transition

The programme supports Brazil's ten-year energy expansion strategy, which places strong emphasis on energy efficiency, power network upgrades and greater use of renewable energy.

A more flexible and efficient electricity system is expected to reduce losses across the network and create additional capacity for renewable power generation. These improvements are intended to strengthen the overall stability of electricity supply while supporting future economic growth.

The project is fully dedicated to climate action and forms part of the European Union's Global Gateway Investment Agenda for Latin America and the Caribbean. Beyond infrastructure improvements, the initiative is expected to encourage greater participation of women across the energy sector through technical positions, professional development opportunities and leadership roles.

Building on an Existing Partnership

The agreement follows an earlier collaboration between the EIB and Neoenergia announced during COP30 in November 2025. At that time, both organisations signed a €300 million green financing package to modernise the electricity grid in Bahia.

That project supports Neoenergia Coelba, which serves more than 6 million customers across 415 municipalities in the state. The financing included investments in network expansion, new customer connections and advanced automation equipment following extensive technical and environmental assessments.

With the latest agreement, Neoenergia gains access to long-term funding that helps reduce refinancing risks, supports large-scale capital investments and attracts additional financing from commercial banks and capital markets. The new programme is expected to play a significant role in creating a stronger, smarter and more climate-ready electricity network across southeastern Brazil.