AURE3

Auren Energia S.A. is a Brazilian electric power company whose common shares are traded on B3 under the ticker AURE3. The company is among the largest private power generators in the country, with an exclusive focus on renewable sources, and also operates as one of the main power traders in the Brazilian market. Its trajectory originates in Votorantim Geração de Energia, a structure created by Grupo Votorantim to manage the energy consumption and generation of the conglomerate’s companies, which over the years was restructured and expanded through the development of proprietary projects and acquisitions. In 2017, this base was combined with a partnership with the Canada Pension Plan Investment Board, in the then VTRM Energia Participações, giving scale to the investment drive in renewable generation assets in Brazil. The corporate reorganization completed in March 2022 consolidated different assets and structures under the name Auren Energia S.A., preparing the company for a publicly traded profile and expanding its generation portfolio.

Over the course of its development, Auren Energia expanded its operations through acquisitions and greenfield project development, consolidating a diversified set of hydropower plants, wind farms and solar complexes. In 2018, the company took control of CESP – Companhia Energética de São Paulo, incorporating relevant hydro assets such as the Porto Primavera HPP. In the wind segment, it developed and began operating the Ventos do Piauí I Complex and completed the acquisition of the Ventos do Araripe III Complex, in addition to later exercising a call option for the Ventos do Piauí II and III complexes. In December 2021, it advanced in the diversification of sources with the acquisition of the Sol de Jaíba solar project, complemented by the start-up of the Sol de Jaíba and Sol do Piauí solar complexes in 2024. In 2024, the company took an additional step in scale by completing the acquisition of the former AES Brasil Energia S.A., now Auren Participações, adding approximately 5.2 GW of renewable installed capacity and complementary hydro, wind and solar assets.

Auren Energia’s business model combines the ownership and operation of generation assets with a strong presence in energy trading, both in the regulated contracting environment and in the free contracting environment. The company organizes its financial reporting into three operating segments: generation, which groups assets from hydro, wind and solar sources; trading, which comprises the operations of Auren Comercializadora de Energia and related subsidiaries; and holding and pipeline, which includes the corporate structure of Auren Energia, Auren Participações and projects under development or construction. In 2024, consolidated net revenue reflected the predominance of the trading segment, which accounted for most of gross revenue, while generation concentrated the largest share of operating profit. This combination highlights an integrated strategy of managing the physical generation portfolio and power purchase and sale contracts, with products tailored to different consumption profiles and contractual horizons.

In generation, Auren Energia operates a predominantly renewable portfolio, with around 9 GW of installed capacity distributed among hydro, wind and solar assets, including minority interests in certain plants. Hydropower accounts for approximately 54% of total capacity, with emphasis on large plants such as Porto Primavera, on the Paraná River, and Água Vermelha and Nova Avanhandava, on the Grande River and Tietê River, in addition to other HPPs and SHPPs located mainly in the state of São Paulo. In wind generation, the company’s portfolio totals more than 3 GW, distributed across complexes such as Ventos do Araripe, Ventos do Piauí I, II and III, Alto Sertão II and Cajuína, among others, with assets concentrated in states in the Northeast and in Rio Grande do Sul. In solar, the company operates photovoltaic plants such as Sol de Jaíba, Sol do Piauí and parks incorporated with Auren Participações, such as Guaimbê and Água Vermelha Solar, with projects designed to maximize the use of solar resources and integrated into the National Interconnected System.

Trading activities are conducted mainly by Auren Comercializadora de Energia and its subsidiaries, the result of the combination of structures inherited from CESP, VTRM and subsequent acquisitions. This business arm trades the energy generated by the group’s assets and energy acquired from third parties, operating predominantly in the free market, with contracts of different terms and risk profiles. Auren has been building an ecosystem of solutions in energy and sustainability, which includes telemetry, data analytics and artificial intelligence in partnership with companies such as Way2 Technology and Aquarela Inovação Tecnológica, as well as initiatives aimed at energy management and customized solutions for lower-demand consumers. The acquisition of Esfera Energia, completed in 2024, expanded the company’s presence in energy management for large clients and in the retail segment, reinforcing Auren’s position as one of the largest power traders in the country and increasing its ability to operate in a growing free market.

Geographically, Auren Energia is present in several Brazilian states, with generation assets distributed across regions such as the Southeast, Northeast and South. The main hydropower plants are concentrated in São Paulo and Minas Gerais, while the wind farms are located mainly in Piauí, Pernambuco, Bahia, Rio Grande do Norte and Rio Grande do Sul. The solar complexes operate in states such as Minas Gerais and Piauí, connected to transmission substations and to the National Interconnected System, allowing energy exchange between regions and mitigating the intermittency associated with variable renewable sources. The company does not operate in energy distribution, limiting itself to generation and trading, with transmission and delivery to the end consumer carried out by transmission and distribution companies, with payment of regulated tariffs for the use of the systems.

Auren Energia’s operations are embedded in a regulatory environment marked by strong state oversight, with the National Electric Energy Agency (ANEEL) playing a central role in granting, regulating and supervising concessions, generation authorizations and trading activities. The company’s hydropower, wind and solar plants operate under concession contracts or specific authorizing resolutions, with defined terms for the exploitation of the assets. In addition to ANEEL, the company interacts with the National System Operator (ONS), responsible for coordinating the operation of the National Interconnected System, and with the Electric Energy Trading Chamber (CCEE), which enables the financial settlement of operations in the regulated and free environments. The management of water resources associated with hydropower plants also involves the National Water and Basic Sanitation Agency (ANA) and federal and state environmental agencies, such as IBAMA and regional environmental secretariats, which participate in environmental licensing and monitoring processes.

From an environmental, social and governance standpoint, Auren Energia is listed on B3’s Novo Mercado, a segment that requires higher standards of corporate governance, such as 100% tag-along rights for common shares and shareholding structures with voting capital only. The company is also part of B3’s Corporate Sustainability Index (ISE), which indicates a commitment to environmental management, social responsibility, transparency and stakeholder relations criteria. The renewable nature of its generation portfolio, based on hydropower plants, wind farms and solar plants, is a central element of its business strategy, aligning the company’s activities with the growing demand for greenhouse gas emissions reduction and energy transition in the Brazilian power sector.

As a company listed on B3, Auren Energia S.A., through its AURE3 shares, has built a significant portfolio of renewable generation assets and a robust trading platform, supported by technology and strategic partnerships. Its recent history has been marked by sector consolidation moves, increased scale and geographic and source diversification, with operations that are heavily regulated and integrated into the National Interconnected System. The combination of large hydropower plants, wind farms and solar complexes, together with the expansion in energy management and energy solutions services, positions the company as one of the main private players in the Brazilian power market, with a focus on renewable sources and long-term contracts with diversified counterparties, without significant concentration in any single client.