Corporate Profile and Background

Corporate Profile

Neoenergia is a publicly yield company with shares (NEOE3) traded on the São Paulo Stock Exchange. Controlled by the Spanish group Iberdrola, the company is an integrated energy company that operates in three strategic segments: (i) Networks – distribution and transmission; (ii) Renewables – wind, hydroelectric and solar generation and (iii) Liberalized – thermal generation and energy trading. It operates in 18 states and in Distrito Federal, with a strong presence in the Northeast Region, one of the fastest growing regions in the country in terms of GDP and population.

Covering a concession area of about 842 thousand square kilometers and with approximately 16.1 million consumer units served by 5 Discos – Neoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP/MS) and Neoenergia Brasília (DF) – Neoenergia is responsible for supplying electric power to 37.7 million people, being the largest distribution player in Brazil in terms of number of consumers and RAB.

Neoenergia also operates in the transmission of electric power, which includes the operation and maintenance of transmission lines and substations with a voltage equal to or greater than 230 kV and which are part of SIN – National Interconnected System. The remuneration of these assets is made through a Permitted Annual Revenue (PAR), result of the Transmission Auctions and/or of authorizing resolutions. Among assets in operation and under construction, the Company has a portfolio of 18 assets (8.6 thousand km of lines and 26 substations), which 10 are operational (2.5 thousand km and 13 substations) and 8 lots under construction (6.1 thousand km and 13 substations).

In April 2023, Neoenergia signed a contract with GIC for the sale of 50% of its shareholding in Neoenergia Transmissão for R$ 1,200 MM, an offer higher than the Equity invested by more than R$ 500 MM. This agreement comprises the 8 operating assets of the company, not considering Afluente T, as it is a listed Company, and Potiguar Sul, which is subject to the “ROFO” mechanism (Right of First Offer) in 2025, after liquidation of the debentures. For assets under construction, GIC will also have the Right of First Offer to acquire 50% when the assets become operational. The Agreement will enable GIC and Neoenergia to jointly analyze and participate in future Transmission auctions in Brazil, in lots that are of mutual interest. The transaction is still subject to customary conditions precedent, including prior approval from government authorities and certain third parties, and the Company will keep its shareholders and the market in general informed.

In the Generation segment, between assets in operation or under construction, the group has an installed capacity of 5.2 GW, in addition to a greenfield pipeline of 5.1 GW of potential installed capacity. The total installed capacity is divided as follows: (a) 3 GW of hydro (b) 1.6 GW is related to wind power, (c) 0.1 GW of solar parks and (d) 0.5 GW of thermal plant -Thermopernambuco.

In December 2022, Neoenergia signed an asset exchange agreement with the Eletrobras Group, aiming at recycling assets to simplify the corporate structure. In this exchange, Neoenergia receives +49% from Dardanelos, reaching 100%, and +0.04% in Neoenergia Coelba, Neoenergia Cosern and Afluente T. In turn, Eletrobras receives +51% in Teles Pires, totaling 100%, and +51% of the UHE Baguari consortium, reaching 66% of the assets and now holding 100% of Baguari I, which owns 51% of the consortium. The transaction is still subject to customary conditions precedent, and the Company will keep its shareholders and the market in general informed.

Our generation platform is based on a clean-source matrix, with a significant share of renewable resources, having long-term concessions and long-term trading agreements in the regulated market (CCEAR`s). We believe that the matrix diversity together with our presence in the distribution, transmission, generation and trading segments allow us consistency in producing results and mitigating risks.

Founded in 1997, following the privatization of the distribution concessionaires of the States of Bahia (Neoenergia Coelba) and Rio Grande do Norte (Neoenergia Cosern), and having acquired Neoenergia Pernambuco in 2000, Neoenergia is one of the largest integrated companies in the Latin America electricity sector.

Our growth has been essentially organic, driven by major investments in quality improvement, universalization of access to energy in our concession areas and the development of Greenfield generation projects, primarily from clean sources, in addition to transmission lines.

The incorporation of Neoenergia Elektro, in August 2017, consolidated Neoenergia as a leading integrated electric energy company in Latin America with a distribution presence in São Paulo, the most developed state in Brazil.

With the acquisition of the distribution company Neoenergia Brasília (old CEB-D), in March 2021, Neoenergia starts to assume the energy distribution to customers in Distrito Federal, with the commitment to expand investments and adopt an efficient management model that ensures the availability of the service and the respect of the human and natural resources. The incorporation of Neoenergia Brasília provides an opportunity to gain synergy with the other concessionaires in the group.



The Company started investing in the energy distribution sector in 1997 with the purchase, at the privatization auction by the Guaraniana consortium, of Neoenergia Coelba, the largest distribution company in the northeast.