09/10/2019

Neoenergia will invest R$ 30 billion up to 2023, says Iberdrola’s CEO

    electric sector; investments
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In his speech during Brazil Investment Forum 2019, held this Thursday in São Paulo, Iberdrola's CEO, Ignacio Galán, emphasized the importance of Brazil for the Group, the long-term investments in the country and the positive expectation regarding the energy market growth.

Given the opportunities in the country, Iberdrola​, through its subsidiary Neoenergia, forecasts R$30 billion investment in Brazil by 2023, in energy generation, transmission and distribution projects. 


“Iberdrola and Neoenergia reinforce the commitment with the country's growth, by continuously fostering investments and developing local talent, through the training of employees. Therefore, we generate a driving force to the economic activity in our areas of operation, benefitting our customers and the whole society", said Ignacio Galán. 


The executive estimated that electricity demand will increase 4% per year in the next five to ten years, according to official data, due to the economic and social development and electrification with the advance of the digital economy.

“The investment in the energy sector and, particularly, in electricity, is one the main growth engines in Brazil in the next decade", said Galán, to an audience comprising executives and authorities.​



 


For the sector expansion becomes a reality, however, it is required that regulation is kept predictable and with proper planning, he says. “Brazil has solid structures, but requires more streamlined licensing processes for anticipating investments", said Iberdrola's CEO. 


The executive also said that market liberalization is an “additional opportunity" for Brazil. “But allowing the access of different agents to end customers will be very significant to increase the range of products and services available", emphasized Iberdrola's CEO in his speech. 


Ignacio Galán also highlighted the importance of Brazil in the group's global strategy and the success of Neoenergia, which held its IPO this year - the largest in the sector since 2004. Iberdrola operates in Brazil for 22 years.​


RENEWABLES


Iberdrola's CEO also highlighted the group's advance in focusing its operation in renewable sources, storage, digital grids and solutions for consumers, with investments always consistent with UN's Sustainable Development Goals. “We have shown that it is possible to combine profitability with respect and promotion of sustainable development", said Galán.​


 

According to him, wind and solar energy are in strong growth, fueled by plenty resources in Brazil, paving the way to storage and thermal generation. 


“The installation of more renewable sources will require the increase in the storage capacity and backup sources.  Batteries and gas plants will be required for avoiding the bottlenecks faced in the past.​





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