São Paulo - Minas Gerais power line

Iberdrola, through its Brazilian subsidiary Neoenergia, acquires at auction in 2022 the concession for the construction of 1,707 kilometres of electrical grid between the north of Minas Gerais and the state of São Paulo, which will be its largest power grid line in the world.

The mega-construction project aims to expand the power line capacity of the northern region of Minas Gerais, so that part of the renewable energy generated there can be transported to the neighbouring state of São Paulo. The new power grid, scheduled to come on stream in September 2027, will have four high-voltage lines, three of them at 500 kV and one line at 440 kV, as well as the new 500 kV New Bridge 3 substation. 

The second foresees the construction of 291 kilometres of lines in the state of Mato Grosso do Sul, with two 230 kV lines and a 230/138 kV substation. The objective is the integration of the small hydroelectric power plants Fundãozinho, Areado and Bandeirante and the connection of the distribution in the Paraíso region.

The timeframe estimated by the regulator for completion is 60 months. Both projects involves an estimated investment of €1 billion and the creation of more than 11,000 jobs.

The acquisition of this important contract in the Brazilian market reinforces the Iberdrola group's expansion in the renewable energy transmission grids segment and consolidates our commitment to the South American country, where we already have more than 2,300 kilometres of electric power transmission lines in operation and another 4,000 under construction.

Iberdrola, a world leader in smart grids

Smart grids are essential for our renewable energy to reach consumers safely and efficiently in any country in the world. At Iberdrola, we operate one of the most important distribution systems in the world and we continue to work on its modernisation, digitalisation and automation. 

For this reason, in our Strategic Plan, we are focusing on smart grids in addition to renewable energies. To sum up, the company plans to invest €21.5bn in grids in the United States, the United Kingdom, Brazil and Spain, which represents 60% of net investment.