EIB grants €150 million green loan to Neoenergia for Brazil grid upgrade
The EIB has signed a €150 million green loan with Neoenergia, guaranteed by Cesce, to modernise Brazil’s electricity networks and enhance renewable integration.
The European Investment Bank (EIB) has agreed a €150 million green loan with Neoenergia to finance the modernisation of electricity distribution networks in Brazil. The agreement, announced this week, is guaranteed by Cesce, Spain’s export credit agency, and forms part of a broader investment programme valued at €342 million to be rolled out from 2027 to 2030.
The financing package will support the refurbishment and modernisation of electricity lines, substations, control and protection systems, as well as network automation. According to the EIB, these upgrades are designed to improve the reliability and capacity of Brazil’s electricity distribution infrastructure, while facilitating the integration of renewable energy sources.
Neoenergia, a major player in Brazil’s power sector, is expected to use the funds to connect new users to the grid and advance Brazil’s energy efficiency and renewable energy goals. The investment is set to benefit local communities and businesses by ensuring more stable and resilient electricity supply, which is critical as Brazil expands its renewable generation capacity.
The EIB highlighted that the loan aligns with the European Union’s Global Gateway strategy, which aims to promote sustainable infrastructure and strengthen partnerships in Latin America. The arrangement with Cesce as guarantor also underlines the growing European commitment to supporting energy transition projects in the region.
For Neoenergia, the programme offers an opportunity to enhance its operational efficiency and market position. The company faces potential implementation risks—such as regulatory or operational delays and macroeconomic fluctuations in Brazil—but stands to secure long-term benefits from a more robust and flexible grid.
The investment is part of broader efforts to modernise Latin America’s energy infrastructure, supporting the integration of renewables and improved grid resilience. For European investors, the deal demonstrates how EU-backed financing can facilitate sustainable development in key partner regions.
