is to sell Energyworks Do Brazil to
, a Brazilian electricity holding company, for approximately EUR68m ($91m), AE Brazil Newswire, a state-owned news agency reports.
Energyworks Do Brazil operates six natural gas fired cogeneration plants, with a combined installed capacity of 93 MW, for industrial customers based in the states of Sao Paulo, Rio de Janeiro and Parana.
Iberdrola holds a 39 per cent stake in Neoenergia, Brazil's third-largest private power company.
Iberdrola, through Neoenergia, is the leading electricity distributor in the northeast of the country, accounting for more than 44 per cent of the regional market.
Neoenergia is involved in the entire electric power production chain, with businesses in the areas of generation, transmission, distribution and commercialization.
Currently it is involved in several hydroelectric power projects across Brazil.