IFC (International Finance Corporation), a member of the World Bank Group, has announced two investments totaling $301 million with energy group EDP. They aim to support clean power generation in Mexico and the modernization of the electricity grid in Brazil. According to the institution, the transactions will improve electricity access and supply for approximately 200,000 people. Solar is also being deployed at smaller scale elsewhere, such as the 530 kWp of solar carports installed by SeeYouSun and Savoie EnR in Aix-les-Bains or the first cranberry harvests beneath solar panels in Massachusetts.

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A $222 million loan for a 200 MW solar plant in Mexico

In Mexico, IFC provided a $222 million loan to support the development of a 200-megawatt solar photovoltaic power plant. The investment is part of a $444 million financing package for EDP's renewable energy operations worldwide. Half of the financing comes from the Instituto de Crédito Oficial (ICO), Spain's state financial agency.

$79 million for the EDP Espírito Santo grid in Brazil

In Brazil, IFC invested about $79 million to help EDP Espírito Santo, the state's largest electricity distributor, modernize and expand its power grid. The investment, made alongside local institutional investors, is meant to support more reliable electricity services for more than 1.8 million customers. Through its Brazilian subsidiary, EDP also takes part in the IFC Future Grids Alliance, an advisory and knowledge-sharing program led by IFC to accelerate investment in grid modernization and reliability in emerging markets.

According to IFC, the two operations should help create more than 4,400 jobs in total. The institution also estimates that they will reduce emissions by 297,000 tons of carbon dioxide equivalent per year.

Statements from executives

Rui Teixeira, chief financial officer of EDP Group, said the investments "reflect EDP's commitment to accelerating the energy transition" while creating tangible benefits for communities and local economies. Ines Rocha, IFC Division Director for Western Europe, Central and Eastern Europe, Ukraine and Moldova, described the two transactions as "a significant step" in deepening a long-term strategic partnership with EDP.

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Electricity demand in emerging economies expected to rise sharply

IFC states that emerging economies will account for almost two-thirds of global electricity demand by 2035. To meet it, annual investment in electricity generation in developing countries would need to more than double to $630 billion, with more than half coming from the private sector. Over the past ten years, the World Bank Group has committed nearly $100 billion to energy.