ENGI4 Energisa

Energisa S.A. is an energy-sector holding company headquartered in Cataguases, Minas Gerais, and is among the main private electric power groups in Brazil. The company’s shares trade on B3 under the tickers ENGI3, ENGI4 and ENGI11, reflecting its 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 incorporated in 1995, initially as Sidepar Participações S.A., focusing on investments in the electric 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 its main economic base in electricity distribution, an activity that accounted for 86% of net operating revenue in 2024. The company also operates, through direct and indirect subsidiaries, in transmission, centralized and distributed power generation, trading in the free market, specialized services for the electricity sector and, more recently, in the distribution and commercialization of natural gas and in 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 a broad presence across the electricity value chain, even though it is concentrated on delivering energy to the end consumer.

In the electricity distribution segment, Energisa controls nine distribution companies that operate under public concession regimes in different Brazilian states. The main distributors 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, connecting new consumer units, metering and billing consumption, emergency services, network maintenance, reconnection and implementing 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 electricity transmission activities have gained relevance since the group entered this segment in 2017. Energisa, through various special purpose entities, 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 at 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, focusing on the implementation, operation and maintenance of high-voltage lines and associated facilities, ensuring the availability and reliability of the infrastructure. Although it represents a smaller share of revenue compared to distribution, the transmission segment accounted for 4.5% of 2024 net operating revenue, reinforcing the diversification of revenue sources within the group.

In power generation, Energisa holds stakes 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 plants are 100% solar, carry I-REC certification and help avoid carbon dioxide emissions. The company also develops wind projects and operates the Maurício hydroelectric plant, as well as a set of solar and wind plants at different stages of development. In distributed generation, the group operates through Alsol Energias Renováveis, which builds, operates and manages solar farms connected to the distribution grid, using the energy offset system provided for in Law 14,300/2022. The focus is on serving micro, small and medium-sized low-voltage enterprises, structured via consortiums, 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 intermediates the purchase and sale of energy between generators, independent power producers and free or special consumers, mostly high-voltage clients with demand above 500 kW. Its activities include prospecting corporate clients, negotiating long-term bilateral contracts with generators from various sources – such as small hydro plants, biomass-fired thermal plants and wind farms – and portfolio management, including contract registration and settlement with the Electric Energy Trading Chamber (CCEE). In addition, the (re)energisa brand consolidates the group’s non-regulated 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 its entry into piped natural gas and bio-solutions. In 2023, the group acquired ES Gás, a natural gas distributor in Espírito Santo, and in 2024 completed the purchase of 51% of Norgás, a holding company with stakes 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 vehicular 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 specialized in composting industrial organic waste, with daily intake capacity for the production of biofertilizers and biogas. This move places the group within 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 public authorities. In the electricity sector, distribution and transmission concessions, as well as generation permits, 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 transmission companies, and also monitors compliance with continuity targets, grid expansion and customer service. In gas distribution, regulation is at the state level, with local agencies defining distribution margins, tariff review processes, grid expansion criteria and operational safety parameters. Energisa operates within a regulatory framework that is constantly evolving, influenced by laws and measures to modernize the electricity sector and the gradual opening of the free market, which affects how energy is contracted, the structure of subsidies and the risk profile of concession holders. In parallel, the company develops sustainability initiatives, such as certified solar plants, energy efficiency programs at the distributors and biogas and biofertilizer projects, aligning its activities with the transition to a lower-carbon energy matrix.

As a result of this trajectory, Energisa has consolidated itself as a public utility group with operations 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 mix of activities, with revenue predominantly from electricity distribution, complemented by transmission, natural gas, generation and related businesses in energy services and solutions.