The International Finance Corporation (IFC), part of the World Bank Group, is providing $301 million through two investments with energy company EDP for solar generation in Mexico and electricity network upgrades in Brazil. The projects are expected to improve electricity access for 200,000 people, support more than 4,400 jobs and reduce annual emissions by 297,000 tonnes of carbon dioxide equivalent. The EDP financing covers both generation and distribution infrastructure.
In Mexico, IFC provided a $222 million loan for a 200-megawatt solar photovoltaic plant. The loan forms part of a $444 million financing package for EDPโs renewable energy operations globally, with Spainโs state financial agency, Instituto de Crรฉdito Oficial (ICO), providing half. The project will add renewable generation capacity as electricity demand grows.
Brazil Investment Targets Electricity Network Reliability
A second investment of about $79 million will help EDP Espรญrito Santo modernise and expand its electricity distribution network. The Brazilian distributor serves more than 1.8 million customers, who are expected to benefit from more reliable service. Local institutional investors are participating, bringing private capital into infrastructure.
EDPโs Brazilian subsidiary participates in the IFC Future Grids Alliance, an advisory programme focused on grid modernisation in emerging markets. Power plants need dependable networks to deliver electricity to homes and businesses. EDP Group Chief Financial Officer Rui Teixeira said the partnership supports clean energy, infrastructure improvements and jobs.
Financing Addresses Rising Electricity Demand
IFC Division Director Ines Rocha said the transactions strengthen its partnership with EDP amid rising demand. Emerging economies are expected to account for almost two-thirds of global electricity demand by 2035. Meeting that growth will require annual investment in developing-country electricity generation to more than double to $630 billion, with over half expected from private sources.
The World Bank Group has committed nearly $100 billion to energy over the past decade. EDP financing can support renewable generation and electricity networks. The Mexico solar project and Brazil grid upgrades aim to improve supply reliability.