Highlights:
• During 1Q24, 22 generator units at the Santo Agostinho Wind Complex (RN) went into operation. At the end of the period, 55 of a total of 70 wind turbines of the project were operating commercially and a further 13 on a test basis. As of May 7, 2024, an additional four wind turbines were authorized for commercial operations and nine are at a test phase.
• The operation for acquiring Juazeiro, São Pedro, Sol do Futuro, Sertão Solar and Lar do Sol photovoltaic plants with an installed capacity of 547,6 MWac and 145.1 average MW of commercial capacity was concluded.
• Fitch Ratings reaffirmed the Company’s Long-Term National Rating and attributed an AAA(bra) credit rating to the sixth, seventh, nineth, tenth and eleventh debenture issues while on the global scale, assigning the Long-Term IDRs (Issuer Default Ratings) in foreign and local currencies, a ‘BB+’ and a ‘BBB-’ rating, respectively.

ENGIE Brasil Energia (EGIE3) reported an adjusted net profit of R$ 793 million in 1Q24, 10.1% lower year-on-year. The decrease reflects the sale of the Pampa Sul Thermoelectric Plant in May 2023, and the partial divestment of the stake in Transportadora Associada de Gás — TAG in January this year. Adjusted Ebitda was R$ 1.8 billion, a reduction of 12.1% compared with 1Q23.
The absence of contracts in the regulated environment linked to the Pampa Sul TPP – with an above-average price in the portfolio, as well as the consequent reduction in the volume of energy sold, also had an impact on net operating revenue, which in this first quarter was R$2.6 billion, down 10.4% on the same period last year.
To maintain solid results, in addition to investing in new renewable energy projects, the Company also achieved a milestone in growth with the acquisition of assets with energy already contracted.
ENGIE Brasil Energia has been reconstituting its portfolio over the past few years with a focus on renewable generation and transmission infrastructure. “We took another step forward in this direction by concluding, on March 6, the acquisition of the Juazeiro, São Pedro, Sol do Futuro, Sertão Solar and Lar do Sol photovoltaic plants, highly strongly contracted long-term at prices above the average for the Company’s portfolio”, Eduardo Sattamini, Chief Executive Officer at ENGIE Brasil Energia points out. The transaction added a further 547,6MWac to the Company’s installed capacity.
With the evolution in the opening of the Free Energy Market in 1Q24, the Company also continued to strengthen its presence with companies of different sizes throughout Brazil. In comparison with the same period in 2023, the number of free consumers increased 46.9%, capturing new entrants. Energy price volatility recorded in 1Q24 generated opportunities for the sales of significant volumes, leading to an average reduction in the balance of uncontracted energy of 95 average MW for the period between 2024 and 2029, thus maintaining the net average selling price at over R$ 210/MWh.

Investments in renewable energy
During 1Q24, important progress was made in the implementation of assets in the northeast of Brazil, totaling 2 GW of renewable energy. The Santo Agostinho Wind Complex (434 MW) reached the 99.6% mark in overall construction progress. At the end of the period, 55 of the project’s total of 70 wind turbines were operating commercially and another 13 were at a test phase. As of May 7, 2024, four more wind turbines have been authorized for commercial operation and nine at the test stage, totaling 97% of the project’s total installed capacity. Implementation should be completed still in 2Q24. Thanks to the progress made at Santo Agostinho, the Company now has 9.008,2 GW of installed capacity of its own, operating a generation park of 10,718 MW, made up of 99 plants, 11 of which are hydropower and 88 complementary.
“In one of the sectors which is most relevant for the current challenges facing society, we continued to operate responsibly, determined in the pursuit of the commitment for growth, always supported first and foremost by the balance between project execution capacity and our financial discipline. Affordable, renewable energy is a key factor for a more sustainable future, ensuring that the combatting of climate change is increasingly effective and the continuing transformation process, inclusive, leaving no one behind,” declares Sattamini.
In the state of Bahia, the Serra do Assuruá Wind Complex with an estimated installed capacity of 846 MW and commercial capacity of 412 average MW, concluded the assembling of its first wind generators in the period and reporting a 44.6% advance in the work. Entry into commercial operation should begin in the third quarter of 2024 with completion by the end of 2025. This will be the largest wind energy generation project ever constructed in a single phase by ENGIE in Brazil and elsewhere in the world.
As for photovoltaic generation, the Assú Sol Photovoltaic Complex is being implemented in the state of Rio Grande do Norte with an installed capacity of approximately 752 MWac and an estimated commercial capacity of 229 average MW. The energy will be sold exclusively through the Free Contracting Environment. Gradual entry into commercial operation should take place from the fourth quarter of 2024 and completion is scheduled for the fourth quarter of 2025.
Between amounts expended in the acquisition of corporate stakes, the construction of new projects and maintenance, revitalization and modernization of the generating park, the Company’s investments in the period were R$3.7 billion.