Iberdrola’s Neoenergia sells transmission assets in $22m deal
Image courtesy Iberdrola
Iberdrola subsidiary Neoenergia, a Brazilian electricity distribution company, has sold a 50% stake in Itabapoana Transmission to Singapore-based wealth fund GIC, valuing R$127.5 million (US$22.3 million).
With the transaction, assets will be invested in the holding company Neoenergia Transmission, a company 50% held by Neoenergia and 50% by GIC since April 2023.
Neoenergia is calling the deal another step in their asset rotation plan, aiming to capitalise on market opportunities.
The deal also represents a strengthening in the company’s, and Iberdrola’s, alliance and ongoing cooperation with GIC.
Commenting in a release was Eduardo Capelastegui, CEO of Neoenergia: “This new operation reaffirms Neoenergia’s operational excellence and the internal culture of always pursuing the best allocation of capital and the optimisation of results for shareholders. We have more lots coming into operation soon, reinforcing the assertiveness of our strategy.
“We are pleased to have an internationally recognised, purposeful partner.”
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The Itabapoana project, acquired from the National Electric Energy Agency (ANEEL) in December 2018, has 221.9km of dual circuit transmission line between the Mutum (MG) and Campos 2 (RJ) substations, with a voltage of 500kV.
By the end of 2025, Neoenergia will have ended its investment cycle in transmission, with the entry into operation of the last four lots under construction – Vale Itajaí, Guanabara, Morro do Chapéu and Alto Paranaíba.
In 2024, Neoenergia invested approximately R$4.1 billion (US$718.2 million) in transmission, 19% more than in 2023, dedicated to the construction of lines and substations for lots acquired at auction.
That same year saw the company’s Itabapoana, Estreito and Paraíso projects delivered, in addition to important sections of Morro do Chapéu, Guanabara and Vale do Itajaí, adding approximately R$300 million (US$52.6 million) in new Annual Permissible Revenue (RAP) and closing 2024 with R$1 billion (US$175.2 billion).
In September 2023, Iberdrola and GIC announced their alliance in a €430 million ($489 million) deal to develop transmission networks in Brazil.
Through the alliance, the companies have been co-investing in operational assets, representing 1,865 km of transmission lines, and GIC became a preferred partner for assets under construction and at auctions.
