São Paulo grid wins €150 million green loan as EIB backs Brazil network upgrade

The European Investment Bank (EIB), through its development arm EIB Global, has signed a €150 million green loan with Brazilian utility Neoenergia to fund upgrades to Neoenergia Elektro's electricity distribution network in the states of São Paulo and Mato Grosso do Sul. The loan is guaranteed by Cesce, Spain's export credit agency — the first EIB-financed operation with Neoenergia backed by a Cesce guarantee for a green project led by a Spanish subsidiary outside Spain.

Where the money goes

The loan supports an investment programme worth about €342 million, to be implemented between 2027 and 2030. The works cover refurbishing distribution lines, upgrading substations, improving control and protection systems, expanding network automation and reducing technical losses. Neoenergia Elektro supplies more than 3 million customers across 223 municipalities in São Paulo and five in Mato Grosso do Sul.

More than new wires

The EIB says the upgrade aims not only to make the network more reliable and resilient to extreme weather, but to expand capacity and ease connections for new users — including low-income households and renewable energy generators. EIB Vice-President Ioannis Tsakiris said modern and resilient electricity networks are essential for the green transition and for reliable supply to communities and businesses in São Paulo and Mato Grosso do Sul. Neoenergia chief executive Eduardo Capelastegui called it a significant step in the company's record investment plan for Neoenergia Elektro, with the priority of providing an increasingly reliable, efficient and high-quality service.

A timing detail worth noting

The timeline is worth stating plainly: the EIB project register records board approval on July 3, 2026 and a contract signature on July 29, 2026 for €150,250,439.36, while the public announcement only appeared around October 22. This is therefore the public disclosure of an already-signed deal, not a transaction struck this week; the actual investment period is 2027 to 2030.