World Bank Group Invests $301 Million with EDP in Solar Energy in Mexico and Power Grids in Brazil

The International Finance Corporation (IFC), part of the World Bank Group, announced two investments with EDP, totaling US$301 million, to support clean energy production in Mexico and the modernization of Brazil’s electric grids. According to EDP, the two investments will help improve access to electricity and its supply for around 200,000 people, support the creation of more than 4,400 jobs, and reduce emissions by about 297,000 tonnes of carbon dioxide equivalent per year.

In Mexico, the IFC provided a US$222 million financing to support the development of a 200 MW solar photovoltaic plant. The amount is part of a US$444 million package for EDP’s renewable energy operations globally, half of which is secured by ICO, the Spanish public financial institution. In Brazil, the IFC invested around US$79 million, in conjunction with local institutional investors, in the modernization and expansion of EDP Espírito Santo’s grid, the state’s largest electricity distributor, which will help ensure a more reliable service to more than 1.8 million customers.

“These investments reflect EDP’s commitment to accelerating the energy transition, while simultaneously generating tangible benefits for communities and local economies,” said Rui Teixeira, CFO of the EDP group, who highlighted the long-standing partnership with the IFC to mobilize capital where it can generate greater impact. For the IFC, Inês Rocha, Director of the Division for Western Europe, Central and Eastern Europe, Ukraine and Moldova, stressed that the two operations reinforce a long-term partnership intended to provide essential energy solutions in the context of rapidly growing global electricity demand.

The context helps explain the bet. By 2035, emerging economies are expected to represent almost two-thirds of global electricity demand, and meeting that demand will require more than doubling the annual investment in electricity production in developing countries to US$630 billion, with more than half to be secured by the private sector. In the last ten years, the World Bank Group has invested nearly US$100 billion in the energy sector.