AURE3 Auren Energia

Auren Energia S.A. is a Brazilian company in the electric power sector, with common shares traded on B3 under the ticker AURE3. The company is among the largest private power generators in the country, focused exclusively on renewable sources, and it also operates as one of the main power traders in the Brazilian market. Its trajectory originates from 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 platform was combined with a partnership with the Canada Pension Plan Investment Board, in what was then VTRM Energia Participações, scaling up the investment drive in renewable generation assets in Brazil. The corporate reorganization concluded in March 2022 consolidated different assets and structures under the name Auren Energia S.A., preparing the company for operation as a publicly traded firm and expanding its generation portfolio.

Over the course of its evolution, Auren Energia expanded its operations through acquisitions and greenfield project development, building a diversified set of hydroelectric plants, wind farms and solar complexes. In 2018, the company took control of CESP – Companhia Energética de São Paulo, adding significant hydroelectric 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 purchase option for the Ventos do Piauí II and III complexes. In December 2021, it advanced its source diversification 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 another step in scale by completing the acquisition of the former AES Brasil Energia S.A., now Auren Participações, adding approximately 5.2 GW of installed renewable capacity and complementary assets in hydro, wind and solar power.

Auren Energia’s business model combines ownership and operation of generation assets with a strong presence in power trading, both in the regulated contracting environment and the free contracting environment. The company organizes its financial reporting into three operating segments: generation, which comprises hydro, wind and solar assets; trading, which includes the operations of Auren Comercializadora de Energia and related subsidiaries; and holding and pipeline, which covers 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 contributed the largest share of operating profit. This combination highlights an integrated strategy for managing the physical generation portfolio and power purchase and sale contracts, with products tailored to different consumption profiles and contract tenors.

In generation, Auren Energia operates a predominantly renewable portfolio, with around 9 GW of installed capacity distributed across hydro, wind and solar assets, including minority interests in certain plants. Hydroelectric power 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 and Tietê rivers, 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 power, the company owns photovoltaic plants such as Sol de Jaíba, Sol do Piauí and plants added via Auren Participações, such as Guaimbê and Água Vermelha Solar, with projects designed to maximize use of solar resources and integrated into the National Interconnected System.

Trading activities are conducted mainly by Auren Comercializadora de Energia and its subsidiaries, resulting from the combination of structures inherited from CESP, VTRM and subsequent acquisitions. This business arm trades both energy generated by the group’s assets and energy purchased from third parties, operating predominantly in the free market, with contracts of different terms and risk profiles. Auren has been building an ecosystem of energy and sustainability solutions, which includes remote metering, data analytics and artificial intelligence in partnership with companies such as Way2 Technology and Aquarela Inovação Tecnológica, as well as initiatives focused on energy management and customized solutions for smaller-demand consumers. The acquisition of Esfera Energia, completed in 2024, expanded the company’s presence in energy management for large customers and in the retail segment, reinforcing Auren’s position as one of the largest power traders in the country and increasing its capacity to operate in an expanding 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 hydroelectric plants are concentrated in São Paulo and Minas Gerais, while 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, enabling energy exchange between regions and mitigating the intermittency associated with variable renewable sources. The company does not engage in power distribution activities, limiting itself to generation and trading, with the transportation and delivery to end consumers carried out by transmission and distribution companies, against payment of regulated tariffs for use of the systems.

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

From an environmental, social and governance perspective, Auren Energia is part of B3’s Novo Mercado, a listing segment that requires higher corporate governance standards, such as 100% tag-along rights for common shares and corporate 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 hydroelectric plants, wind farms and solar plants, is a central element of its business strategy, aligning the company’s operations with growing demands 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, scaling up and geographic and source diversification, with operations that are heavily regulated and integrated into the National Interconnected System. The combination of large hydroelectric plants, wind farms and solar complexes, along with expansion in energy management and solutions services, positions the company as one of the main private players in the Brazilian electricity market, focused on renewable sources and long-term contracts with a broad base of counterparties, without significant concentration in any single client.