On October 27, 2023, ENGIE Brasil Energia (EGIE3) signed an agreement to acquire the entire shares of Atlas Energia Renovável do Brasil S.A. and Atlas Brasil Energia Holding 2 S.A. The operation includes photovoltaic complexes in Juazeiro (BA), São Pedro (BA), Sol do Futuro (CE), Sertão Solar BA) and Lar do Sol (MG), which together reach a total of 545 MW of installed capacity.

The total acquisition value will be approximately R$ 3,240,000.00 (three billion, two hundred and forty million reais), divided between the purchase price for the amount of up to R$ 2,269,000,000.00 (two billion, two hundred and sixty-nine million reais), and the net debt of Atlas, in the amount of approximately R$ 971,000,000.00 (nine hundred and seventy-one million reais), which shall be consolidated.

The values involved may be modified (earn-out), in accordance with the meeting of certain conditions enshrined in the Agreement, being subject to adjustments up to the date of closing the operation. It is also necessary to obtain the approval by the Brazilian anti-trust authority (Conselho Administrativo de Defesa Econômica – CADE), among other usual suspensive conditions for operations of this nature.

The transaction reinforces a movement which began in 2015: with a strategy rigorously planned and executed, over the past six years the company has invested more than R$ 20 billion in the energy transition including investments in clean energy and the implementation of transmission lines.

“This is one more step aligned to the execution of ENGIE Group’s strategy of continuing to grow in renewable energy in Brazil. The way we conduct our acquisitions is based on a comprehensive analysis of risks, taking into account environmental and social aspects, together with aspects of governance as well as our own financial discipline, having as their objective the continuity and generation of positive results in a sustainable manner”, Eduardo Sattamini, the Company’s Chief Executive Officer commented.

With the decision to invest in these assets, ENGIE Brasil Energia will ensure contracted energy compatible with the required return, positively impacting Ebitda margins in the long term. “The acquisition of operating assets, with contracted energy, has become an attractive option for efficiently expanding our businesses at this time in the market”, explained Eduardo Takamori, Chief Financial and Investor Relations Officer at ENGIE Brasil Energia.

Juazeiro
Location: Bahia
Startup of operations: feb-19
Installed Capacity (MWac): 120.0
Commercial Capacity (average MW): 34.8
Contraction: ACR (Reserve Energy Auction) – Regulated Market
Volume sold (average MW): 34.8
Price (~ R$/MWh Base Dec/2022): 433.00
Term: 2018-2038
Authorization until: 2051

São Pedro
Location: Bahia
Startup of operations: nov-18
Installed Capacity (MWac): 54.0
Commercial Capacity (average MW): 15.0
Contraction: ACR (Reserve Energy Auction) – Regulated Market
Volume sold (average MW): 15.0
Price (~ R$/MWh Base Dec/2022): 451.00
Term: 2017-2037
Authorization until: 2051

Sol do Futuro
Location: Ceará
Startup of operations: may-19
Installed Capacity (MWac): 81.0
Commercial Capacity (average MW): 16.2
Contraction: ACR (Reserve Energy Auction) – Regulated Market
Volume sold (average MW): 16.2
Price (~ R$/MWh Base Dec/2022): 429.00
Term: 2018-2038
Authorization until: 2051

Sertão Solar
Location: Bahia
Startup of operations: dec-19
Installed Capacity (MWac): 90.0
Commercial Capacity (average MW): 26.1
Contraction: ACR (New Energy Auction)
Volume sold (average MW): 27.2
Price (~ R$/MWh Base Dec/2022): 181.00
Term: 2021-2041
Authorization until: 2053

Lar do Sol
Location: Minas Gerais
Startup of operations: mar-23
Installed Capacity (MWac): 200.0
Commercial Capacity (average MW): 53.0
Contraction: ACL – Free Marke
Volume sold (average MW): 49.0
Price (~ R$/MWh Base Dec/2022): N/D (1)
Term: 2024-2042
Authorization until: 2054

Totais
Installed Capacity (MWac): 545.0
Commercial Capacity (average MW): 145.1
Volume sold (average MW): 142.2