EDP And IFC Deepen Partnership To Expand Energy Access, Support Jobs And Growth In Latin America
By Godson Umejiego, Bureau Chief, The Americas and Carlos PJ Parreira, Bureau Chief, Latin America
A member of the World Bank Group, the International Finance Corporation(IFC)recently announced two investments totaling US$301 million with global energy company EDP to support clean energy generation in Mexico and electricity grid upgrades in Brazil. These two investments will improve electricity access and supply for approximately 200,000 people, support the creation of over 4,400 jobs combined, and reduce carbon emissions by an estimated 297,000 tons of carbon dioxide equivalent per year.
In Mexico, IFC provided a US$222 million loan to support the development of a 200-megawatt solar photovoltaic power plant. IFC’s investment is part of a US$444 million financing package that supports EDP’s renewable energy operations globally. Half of the financing is provided by Instituto de Credito Oficial (ICO), Spain’s state financial agency.
In Brazil, IFC invested about US$79 million to help EDP Espírito Santo, the state’s largest electricity distributor, modernize and expand its power grid. The investment will support more reliable electricity services for over 1.8 million customers and was made alongside local institutional investors. Through its subsidiary in Brazil, EDP has also been an active participant in the IFC Future Grids Alliance, an advisory and knowledge-sharing programme led by IFC to accelerate critical investments in grid modernization and reliability in emerging markets.
“These investments reflect EDP’s commitment to accelerating the energy transition while creating tangible benefits for communities and local economies. Through our long-standing partnership with IFC, we are expanding access to reliable, affordable and clean energy, supporting the modernization of critical infrastructure, and helping create the conditions for sustainable growth and job creation. Together, we are mobilizing capital where it can have the greatest impact, building a more resilient and inclusive energy future”, said EDP Group’s Chief Financial Officer Rui Teixeira.
“IFC’s two recent transactions with EDP mark a significant step in deepening a long-term strategic partnership to deliver critical energy solutions amid rapidly growing global power demand,” said IFC Division Director, Western Europe, Central and Eastern Europe, Ukraine & Moldova Ines Rocha. “By bringing together IFC’s financing and global expertise with EDP’s industry leadership, we are expanding access to reliable energy that supports jobs, productivity, and economic growth for businesses and communities.”
Countries need enough power to run industries, support services, and compete globally. Emerging economies will make up almost two-thirds of global electricity demand by 2035. Meeting that demand will require annual investment in electricity generation in developing countries to more than double to US$630 billion—with more than half needing to come from the private sector. Over the last 10 years, the World Bank Group has committed nearly US$100 billion to energy.
