About Centrais Elétricas Brasileiras S.A. - Eletrobrás

Centrais Eletricas Brasileiras S.A. – Eletrobras, directly and through its subsidiaries, engages in the generation and transmission of electricity in Brazil. As of December 31, 2022, the company contributed, including its subsidiaries and SPEs to approximately 23% of the installed power generating capacity within Brazil. As of December 31, 2022, the company operated generation and transmission activities in Brazil through 4 regional subsidiaries, Eletropar and 74 SPEs (including 1 outside of Brazil), and non-controlling interests in 21 companies. Through its subsidiaries, the company is also responsible for approximately 23% of the installed capacity and 38.5% of the installed transmission lines above 230 kV in Brazil. Generation The company’s principal activity is the generation of electricity. Pursuant to Law No. 5,899/1973, and Decree No. 4,550/2002, the company must transfer all energy contracted by Itaipu to distribution companies in the southern, southeastern and mid-western regions of Brazil. The company acted as an agent for Itaipu, which used to be a pass-through entity. The company had an installed capacity of 42,559.4 MW as of December 31, 2022 that represented 23% of the 188,980.9 MW installed in Brazil. Of this total, 68% comes from projects wholly owned by the company, 30% from projects carried out through SPEs (12,651.7 MW) and 2% of ventures in shared ownership. The company has approximately 480.45 MW in projects planned throughout Brazil by the end of 2024. The company entered into feasibility studies for an additional capacity of 33,350 MW, although the studies are not a guarantee of the implementation of projects by it, nor will they be corporate partnerships. For instance, Angra 3, which is under development, is expected to have an installed capacity of 1,405 MW at the start of its commercial operation. Types of Plants For the year ended December 31, 2022, the company only considered the electricity generated by Eletronuclear until June 2022 as a result of the corporate reorganization following its Privatization. The company also generates electricity through its thermal, nuclear, wind and solar plants. Thermal plants accounted for 3.2% of its total power generated as of December 31, 2022. Hydroelectric Plants The company uses its hydro-powered plants to provide the bulk of its primary and back-up electricity generated during peak periods of high demand. As of December 31, 2022, the company owned and operated 32 hydroelectric plants. In addition, the company holds participations in Peixe Angical (40%), Jirau (40%), Serra do Facão (54.013%) Retiro Baixo (49%), Foz do Chapecó (40%), Baguari (15%), Dardanelos (49%), Santo AntÔnio (72.36%), Teles Pires (49%), Três Irmãos (49.9%), Belo Monte (49.98%), São Manoel (33.33%) and Sinop (49%) plants. The company has participations in the Serra Mesa (48.46%), Manso (70%) and Mauá (49%). The ONS is solely responsible for determining how much electricity each of the company’s plants should generate per year. As of December 31, 2022, the total installed capacity of the company’s hydroelectric plants was 40,353.9 Megawatt (MW) (including its participations in the special purpose entities (SPEs)). The company’s largest hydroelectric plant is Tucuruí and Eletronorte holds a concession through 2052. Thermal Plants As of December 31, 2022, the company owned and operated 5 thermal plants. Thermal plants include coal and gas power generation units. The total installed capacity of the company’s thermal plants was 1,482 MW as of December 31, 2022. Nuclear Plants As of December 31, 2022, the company own 35.90% of the voting capital and 67.95% of the total share capital of Eletronuclear. Eletronuclear has two operating nuclear power plants, Angra 1, with an installed capacity of 640 MW and Angra 2, with an installed capacity of 1,350 MW. Angra 1 operated at 86.27% capacity as of December 31, 2022, in line with industry standards. Accordingly, the gross generated energy of Angra 1 was 4,872,780.295 MWh until December 31, 2022. Angra 2 operated at 80.16% capacity as of December 31, 2022, in line with industry standards. Accordingly, the gross generated energy of Angra 1 was 9,686,314.146 Megawatt hour (MWh) until December 31, 2022. On February 24, 2022, Eletronuclear and Indústrias Nucleares do Brasil S.A. (INB) entered into an agreement to supply fuel components, which covers five refills for each of the plants in operation (Angra 1 and Angra 2) starting in 2022. INB was transferred to ENBPar. Sales of Electricity Generated The company sells energy in two marketing environments available in the Brazilian market. In the Free Market the contracts are freely agreed with energy traders, free consumers or other generators. In the Regulated Market the contracts are executed with the energy distributors and are agreed through public procurement auctions and bilateral contracts entered into by Eletronorte. Transmission In Brazil’s Interconnected Power System, the majority of hydroelectric plants are distant from the large centers of power consumption, and therefore Brazil developed an extensive transmission system. Dispositions In October 2022, the company sold all of its shares held in its affiliate Celpe, and Eletronorte sold its 49% stake in the SPE Amapari Eneva S.A. International Activities In 2022, the company continued its international strategy, seeking to develop projects related to regional integration and renewable energy generation in Latin America. Accordingly, the company is conducting studies to evaluate the hydroelectric potential at the border with Bolivia and Argentina and the related interconnection, in addition to studies about the integration of inter-regional transmission systems in Brazil, Guyana, French Guyana and Suriname. The company also maintains its energy supply contracts with Uruguay. Arco Norte Project (Brazil, Guyana, French Guiana and Suriname) This project is a transmission system of approximately 1,900 km that will allow the transfer of energy through new generation ventures among Brazil, Guyana, Suriname and French Guiana. Bolivia Through a partnership established between the company, Empresa Nacional de Electricidad (ENDE) and CAF, a company was hired to carry out studies (Inventário) in part of the Madeira River basin to evaluate the hydroelectric potential along the Brazilian and Bolivian border. The studies are expected to conclude by the middle of 2023. Additionally, the company and ENDE are proceeding with other studies to evaluate the conditions for electric interconnection between Brazil and Bolivia in order to allow energy exchange. Uruguay The partnership between the company and UTE, led to the development of the wind farm Artilleros (Wind Park Artilleros – 65MW). Strategy The company’s strategy is to develop a high-performance corporate culture, with lean and agile management that focuses on investment capacity, value creation, more competitiveness. In addition, the company intends to focus on active risk management and increasing digitalization to allow it to reach its aim to become an innovative clean energy company, which is recognized for excellence and sustainability. History Centrais Eletricas Brasileiras S.A. - Eletrobras was founded in 1962. The company was incorporated in 1962.