ENGI3

Energisa S.A. is an energy sector holding company headquartered in Cataguases, Minas Gerais, and is among Brazil’s main private electricity groups. The company’s shares trade on B3 under the tickers ENGI3, ENGI4, and ENGI11, reflecting a capital structure with common shares, preferred shares, and units. The group’s origins date back to 1905 with the founding of Companhia Força e Luz Cataguazes-Leopoldina, now Energisa Minas Rio Distribuidora de Energia S.A., created to generate and distribute electricity in the Zona da Mata region of Minas Gerais. The current Energisa S.A. was formed in 1995, initially as Sidepar Participações S.A., focused on investments in the power distribution sector, and began operating effectively in 1996. In 1998, it adopted the name Energisa S.A. and, over the following decades, consolidated its position through organic growth and acquisitions, including assets in the Northeast and Southeast, as well as the incorporation of companies from the former Grupo Rede starting in 2014, which significantly expanded its customer base and concession area.

Energisa’s business model is structured as an operational holding company, with electricity distribution as its main economic driver, accounting for 86% of net operating revenue in 2024. The company also operates, through direct and indirect subsidiaries, in transmission, centralized and distributed generation, free-market trading, specialized services for the power sector and, more recently, in pipeline gas distribution and sales, as well as bio solutions such as biogas, biomethane, and biofertilizers. Energisa provides administrative and management services to its regulated subsidiaries, coordinating investments, planning, and operations for a diversified portfolio of energy companies, which gives the group broad presence across the electricity value chain, even though it remains concentrated on delivering energy to end consumers.

In the electricity distribution segment, Energisa controls nine distributors that operate under public concessions in different Brazilian states. Key concessionaires include Energisa Minas Rio (EMR), Energisa Sergipe (ESE), Energisa Paraíba (EPB), Energisa Mato Grosso (EMT), Energisa Mato Grosso do Sul (EMS), Energisa Sul Sudeste (ESS), Energisa Tocantins (ETO), Energisa Rondônia (ERO), and Energisa Acre (EAC). These distributors are responsible for operating and maintaining medium- and low-voltage networks, substations, and other distribution assets, handling the connection of new consumer units, consumption metering and billing, emergency service, network maintenance, reconnection, and implementation of energy efficiency programs. In several locations, the group is also responsible for operating public lighting. In 2024, Energisa’s consolidated distribution portfolio served tens of millions of people, with extensive urban and rural networks, thousands of transformers and substations, and concession areas totaling more than 2 million square kilometers, including states with large geographic dispersion such as Mato Grosso, Mato Grosso do Sul, Rondônia, and Acre.

The company’s role in electricity transmission has gained relevance since its entry into this segment in 2017. Through several special purpose entities, Energisa holds concessions for lines and substations that are part of the National Interconnected System (SIN), connecting generation centers to consumption areas. In 2024, the group’s portfolio already comprised thirteen transmission concessions, including assets won in recent auctions, such as Lot 12, which marked the company’s entry into the states of Piauí and Maranhão. The transmission companies operate under long-term regulated contracts, focused on the implementation, operation, and maintenance of high-voltage lines and associated facilities, ensuring infrastructure availability and reliability. Although it represents a smaller share of revenue compared with distribution, the transmission segment accounted for 4.5% of 2024 net operating revenue, reinforcing the diversification of the group’s revenue sources.

In generation, Energisa holds interests in centralized and distributed generation assets, with emphasis on the Rio do Peixe I and II solar plants in Paraíba, which total 70 MWp of installed capacity and are connected to the grid to serve the free market and utilities. These parks are 100% solar, have I-REC certification, and help avoid carbon dioxide emissions. The company also develops wind projects and owns the Maurício hydropower plant, in addition to a set of solar and wind plants at different development stages. In distributed generation, the group operates through Alsol Energias Renováveis, which builds, operates, and manages solar farms connected to the distribution grid, using the net metering system established by Law 14,300/2022. The focus is on serving micro, small, and medium-sized low-voltage businesses organized via consortia, offering access to renewable energy based on remote generating units.

Energisa is also active in electricity trading through Energisa Comercializadora de Energia, which operates in the Free Contracting Environment (ACL). This subsidiary brokers the purchase and sale of energy between generators, independent producers, and free or special consumers, mostly high-voltage clients with demand above 500 kW. Activities include prospecting corporate customers, negotiating long-term bilateral contracts with generators from various sources—such as small hydropower plants, biomass-fired thermal plants, and wind farms—and portfolio management, with contract registration and settlement at the Câmara de Comercialização de Energia Elétrica (CCEE). In addition, the (re)energisa brand consolidates the group’s unregulated businesses, bringing together distributed generation, free-market trading, and value-added services in energy solutions, with an emphasis on efficiency, solar power, and support for companies’ energy transition.

Energisa’s recent diversification includes entry into the piped natural gas and bio solutions segments. In 2023, the group acquired ES Gás, a natural gas distributor in Espírito Santo, and in 2024 it completed the acquisition of 51% of Norgás, a holding company with interests in piped gas distributors in four Northeastern states: Cegás (Ceará), Copergás (Pernambuco), Algás (Alagoas), and Potigás (Rio Grande do Norte). These companies distribute gas to residential, commercial, industrial, and vehicle customers under state concessions with regulated tariffs. In parallel, Energisa began investing in biogas, biomethane, and biofertilizer solutions through Energisa Biogás and Agric, a Santa Catarina-based company specializing in industrial organic waste composting, with daily intake capacity for producing biofertilizers and biogas. This move places the group in a broader energy and waste chain, connecting the industrial and agricultural sectors to alternative energy and environmental management solutions.

Energisa’s main activities are heavily regulated by the government. In the power sector, distribution and transmission concessions, as well as generation authorizations, are granted by the Federal Government under the supervision of the Brazilian Electricity Regulatory Agency (ANEEL) and the Ministry of Mines and Energy. ANEEL regulates tariffs, quality standards, investment levels, and operational aspects of distributors and transmitters, and monitors compliance with continuity targets, network expansion, and service delivery. In gas distribution, regulation is at the state level, with local agencies defining distribution margins, tariff review processes, network expansion criteria, and operational safety parameters. Energisa operates within a constantly evolving regulatory framework, influenced by laws and measures to modernize the electricity sector and gradually open the free market, which affects how energy is contracted, the structure of subsidies, and the risk profile of concessionaires. In parallel, the company develops sustainability initiatives such as certified solar parks, energy efficiency programs in its distributors, and biogas and biofertilizer projects, aligning its activities with the transition to a lower-carbon energy mix.

As a result of this trajectory, Energisa has consolidated itself as a public utility group operating in multiple Brazilian states, combining regulated electricity and piped gas businesses with initiatives in renewable generation, trading, and specialized services. The ENGI3, ENGI4, and ENGI11 shares on B3 reflect this set of activities, with revenue predominantly from electricity distribution, complemented by transmission, natural gas, generation, and related businesses in energy services and solutions.