Digitalization Programs for Brazil 2018-22

Sectorial Context | Regulated Auctions Promoted by MME to guarantee energy supply Energy Existing energy supply start: same year (A) - until 5th year (A-5) PPA: between 1-15 years New energy supply start: from 3rd year (A-3) to 6th year (A-6) PPA: between 15-30 years enel New energy + Transmission ■ supply start: from 5th year (A-5) to 7th year (A-7) PPA: between 15-30 years supply start A-7 A-6 A-5 A-4 A-3 A-2 A-1 Energy contract types (PPA) Fixed: assets remuneration and fixed costs Availability ◉ Variable: declared cost in auction x MWh Quantity ■ Thermal, wind and solar plants Other Auctions 15 year 30 year MWh x Price (auction) – function of amount of energy contracted Hydro, wind and solar sources Adjustment Auction: Up to 5% of the Dx load with supply up to 2 years Reserve Auction: Objective of guaranteeing energy security. Paid by all consumers (Sector Charge) 27

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