What does strategic portfolio reshaping look like for a global renewable powerhouse Sometimes, it involves carefully timed divestments that unlock value while preserving long-term optionality. Iberdrola, through its Brazilian arm Neoenergia, has taken such a step by announcing the sale of the Dardanelos hydroelectric power plant to EDF on November 22, 2025. This transaction reflects a sophisticated balance of capital discipline, future investment capacity, and continued presence in Brazil's power sector.

The sale of the Dardanelos HPP comes at an enterprise value of $468.45 million, representing a 10.7x EV/EBITDA multiple—a compelling valuation aligned with Iberdrola Group’s global asset rotation strategy. Of the total value, $415.18 million corresponds to a December 2024 valuation and includes a $12.47 million earn-out, while an additional $53.27 million reflects CDI-linked financial adjustments up to the signing date. Neoenergia executed the transaction through a subsidiary that transferred 100% of Energetica Aguas da Pedra (EAPSA) to EDF Brasil Hidro Participações. In parallel, Iberdrola and EDF formed Hidro Participações, enabling Neoenergia to retain a 25% indirect stake for up to 2.5 years—an arrangement that enhances flexibility as both parties retain the right to complete a full buyout of the stake within that period.

The 261 MW Dardanelos HPP, located on the Aripuanã River in Mato Grosso, is considered one of Brazil’s most efficient hydro projects, boasting a reservoir footprint of just 0.24 km². Operating since 2011, the plant features five generating units and was developed with an investment of $138.76 million, partly financed through third-party funding. Its contracts with 24 electricity distributors ensure stable revenue visibility, making it an attractive, reliable asset within Brazil’s energy mix. As Neoenergia and EDF jointly capitalize Hidro Participações—with Neoenergia contributing $17.41 million for its 25% stake and EDF $52.24 million for 75%—the remainder of the acquisition cost will be financed through bank loans.

For Neoenergia, the transaction is more than a divestment—it is a strategic move aimed at cash strengthening, deleveraging, and expanding investment capacity. Supported by advisors UBS BB Investment Bank, BNP Paribas, and legal advisor Trench Rossi Watanabe, the deal reflects best-in-class financial structuring. As Brazil continues modernizing its grid and expanding renewable capacity, Neoenergia’s disciplined capital rotation positions it to reinvest in high-growth opportunities across the region. Final closing remains subject to regulatory clearances from CADE, ANEEL, and EAPSA’s financing partners.

Iberdrola’s sale of the Dardanelos plant showcases strategic foresight—unlocking asset value while maintaining a foothold in a key renewable market. With strengthened financial flexibility and enhanced investment capacity, Neoenergia is poised for its next phase of sustainable growth.

Want to stay updated on the latest renewable energy deals and strategies shaping the future of power?
Explore our latest insights, project updates, and more at Enerdatics.
Don’t forget to subscribe to our newsletter for real-time updates.