Engie Brasil Energia S A : wins the Capacity Reserve Auction and will increase the power output of the Jaguara Hydropower Plant

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ENGIE Brasil wins the Capacity Reserve Auction and will increase the power output of the Jaguara Hydropower Plant 18 March 2026 Compartilhe ENGIE Brasil Energia made a successful bid at the Capacity Reserve Auction organized by the Electric Energy Trading Chamber (CCEE), for the Hydroelectric Power product 2030, through the sale of 195.78 MW of power from the Jaguara Hydropower Plant, located on the Rio Grande River on the state divide between Minas Gerais and São Paulo. The project envisages a total investment of around R$ 1.2 billion for expanding the plant's installed capacity by 232 MW, through the installation of two new generating units in existing shafts, each one with a capacity of 116 MW. The auction was held with the purpose of reinforcing the security, flexibility and reliability of electric power in Brazil. The contracted power is scheduled to come onstream in August 2030. The contract establishes the sale of power for a period of 15 years, maturing in July 2045, guaranteeing an estimated fixed annual revenue of R$ 270.4 million (base date: September 2025). Currently, the Jaguara Hydropower Plant has 424 MW of installed capacity, with 324 average MW of power allocated to commercial generation, under a concession agreement valid through June 2048. The plant became part of ENGIE Brasil Energia's portfolio in 2017, after being acquired at an auction under the quota regime. Today, 70% of its commercial capacity is allocated under this regime, while the remaining 30% is traded to the Free Contracting Market (ACL). "The Capacity Reserve Auction is a strategic instrument for strengthening the reliability of the system, contributing to long-term systemic security. We are satisfied with the result of the auction, especially since the Jaguara Hydropower Plant is a strategic asset for the company, currently undergoing a modernization process and representing a model of operational excellence within our portfolio. The LRCAP/2026 mechanism enabled the plant's participation after so many years and is fully aligned with the company's strategy of investing in high-performance assets with 100% clean energy", declares Eduardo Sattamini, ENGIE Brasil's Chief Executive Officer. Work on the modernization of Jaguara Hydropower Plant Work on the modernization of the hydropower plant began in July 2023 and involves an investment of R$ 500 million, of which R$ 130 million has already been expended. The project aims to extend the plant's useful life and increase the reliability and efficiency of its operations. The work includes maintaining the capacity of four generating units, totaling 424 MW. Modernization of the first unit is scheduled to begin before the end of the second quarter of this year, and the project as a whole is expected to be completed in 2029. ABOUT ENGIE ENGIE is a major player in the energy transition, whose purpose is to accelerate the transition towards a carbon-neutral economy. With 98,000 employees in 30 countries, the Group covers the entire energy value chain, from production to infrastructures and sales. ENGIE combines complementary activities: renewable electricity and green gas production, flexibility assets (notably batteries), gas and electricity transmission and distribution networks, local energy infrastructures (heating and cooling networks) and the supply of energy to individuals, local authorities and businesses. Every year, ENGIE invests more than €10 billion to drive forward the energy transition and achieve its net-zero carbon goal by 2045. Turnover in 2024: €73.8 billion. In Brazil, ENGIE, one of the leaders in 100% renewable energy generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms. With the acquisition of Transportadora Associada de Gás - TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities. The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management. With 2,800 employees, ENGIE's turnover in Brazil in 2024 was of R$ 12.3 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy. The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris - Europe 120 / France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).

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