Companhia Paranaense de Energia (CPLE6) Investor update summary

Strategic significance and system impact

• Secured major wins in the 2026 reserve capacity auction, enhancing relevance in the national system.

• Foz do Areia and Segredo plants will become the 8th and 9th largest hydropower plants in Brazil, with installed capacities of 2,536 MW and 2,526 MW, respectively.

• Auction results align with long-term Strategy 2035 and support sustainable value generation.

• Hydropower assets offer low cost, tariff affordability, and unique operational advantages, including flexibility, frequency control, and operational reserves.

• Hydropower delivers renewable, clean energy with zero carbon emissions and supports local industry through domestic equipment manufacturing.

Asset overview and expansion

• Both plants provide significant physical guarantees, supporting system reliability.

• Strategic expansion of the generation portfolio is underway, with a pipeline of over 4 GW for future auctions.

Financial and operational details

• Total estimated investment is BRL 4.9 billion: BRL 1.3 billion for Foz do Areia and BRL 3.6 billion for Segredo, with 70% leverage.

• CapEx disbursement: ~15-16% in 2026, 30-40% in 2027-28, remainder in 2029-30 for both projects.

• Contracted gross price is BRL 1,395, with TUST ranging from BRL 575-719 depending on the plant; transmission fees are indexed and updated annually.

• PMSO costs are low, close to 3% of total cost; TUST is the most significant cost component.

• Both plants have 15-year generation terms starting August 2030, with potential for earlier delivery if demand arises.