Power Consumption - The total power consumption in Brazil for the year ended December 31, 2023, was 531,013 GWh, reflecting a 4.2% increase from 509,441 GWh in 2022[687]. - The residential sector's electricity consumption grew by 7.6%, reaching 164,323 GWh in 2023 compared to 152,771 GWh in 2022[689]. Financial Performance - Liabilities related to compulsory loans decreased by R$7.2 billion to R$17.3 billion in 2023, down from R$24.4 billion in 2022[693]. - The total value of RAP for the 2022-2023 cycle was R$18.3 billion, representing a 25% increase compared to the previous cycle[703]. - The company reduced its short-term cash flow curve by approximately R$8.0 billion due to the re-profiling of RBSE's financial component approved by ANEEL[705]. - The transfer of shares in Itaipu to ENBPar for R$1.1 billion impacted the company's results in 2022 by an estimated R$897.0 million[700]. - The outstanding balance of the transfer price for Itaipu was paid by ENBPar on March 31, 2023, amounting to R$952.0 million[702]. Financial Strategy - The company has a financial hedging policy to mitigate exposure to fluctuations in the U.S. dollar and is still exposed to the Euro, with loans totaling (38,223) EUR thousands and (204,552) R$ thousands[686]. - The commercialization strategy aims to optimize energy sales with 20% of energy traded on the Free Market in 2023 and all trading to be conducted on the Free Market from 2024[690]. - The company has extended the maturity of debentures for Eletronorte by 5 years, with interest rates reduced to CDI + 2.75% per annum[716]. - In September 2023, the company completed its fourth debenture issuance totaling R$7.0 billion, with R$4.0 billion in the first series and R$3.0 billion in the second series[717]. - The subsidiary Furnas issued commercial notes in five series amounting to R$3.5 billion, with the largest series being R$1.0 billion[718]. - In November 2023, the subsidiary SAESA underwent a debt restructuring, with a capital increase of R$2.04 billion used to prepay part of SAESA's debt, and the company assumed an outstanding debt balance of R$11.5 billion[719]. Impairments - The company recorded impairments totaling R$1.847 billion for the year ended December 31, 2023, compared to R$2.690 billion in 2022[724]. - The impairment for the Coxilha Negra wind farm was R$591.9 million, while the Samuel Hydroelectric Plant recorded an impairment of R$261.9 million[726][727]. - The discount rates used for impairment testing were 5.81% for non-renewed generation and 6.53% for renewed generation in 2023[724]. Revenue and Expenses - The company’s operating revenues are primarily derived from electricity generation and transmission, with regulatory charges impacting gross revenues[730][731]. - Financial expenses mainly reflect debt and leasing expenses, with significant exposure to U.S. dollar-denominated debt totaling U.S.$1.25 billion[747]. - The company entered into a derivative transaction in April 2023 to hedge foreign currency debts against exchange rate fluctuations[748].

Legal and Regulatory Risks - The company is subject to ongoing risks following its Privatization, including legal challenges and potential reversal proposals from the newly elected President and his party[48]. - The company is facing 23 ongoing lawsuits challenging the model of its Privatization, which could have adverse legal and reputational effects[64]. - The company faces potential fines and liabilities related to the management of government programs, with a previous fine of R$51.7 million imposed by ANEEL[77]. - The company is subject to ongoing litigation concerning compulsory loans made between 1962 and 1993, which could significantly impact its financial condition[163]. - A recent court decision allows for shareholders to be included as defendants in environmental damage claims, which could pose additional risks to the company[153]. - The company is cooperating with an SEC investigation related to the compulsory loan program and ongoing litigation[180]. - The company cannot assure that new lawsuits will not be filed or that new judicial decisions will not be adverse, which may materially affect its financial condition[178]. - The company is subject to regulatory changes by ANEEL, which could adversely impact its financial condition and results of operations[191]. Financial Liabilities and Debt - The company has a total exposure of approximately R$4.3 billion related to debts owed by Amazonas Energia, with R$2.7 billion owed to Eletronorte and R$4.9 billion owed to the company as of December 31, 2022[70]. - The company has substantial financial liabilities and may face liquidity constraints in the near and medium term, affecting its ability to finance planned investments[52]. - The company has fully provisioned R$2.0 billion due under four renegotiated agreements with Amazonas Energia as of December 31, 2022[72]. - The company has increased its provision for debt related to Amazonas Energia to R$4.6 billion due to ongoing legal issues and defaults[71]. - The company recorded R$61.1 billion in financial statements to be received as RBSE and RBNI assets, but cannot guarantee full or timely payments[139]. - As of December 31, 2022, the company reported a deficit of R$5.2 billion in its pension plans, with contributions of R$295 million made during the same period[146]. - The company provisioned R$33.3 billion for probable legal proceedings as of December 31, 2022, with R$29.6 billion related to civil claims[154]. - The company has a provision of R$24.4 billion concerning ongoing judicial decisions related to book-entry credits of compulsory loans as of December 31, 2022[169]. - The company estimates a potential increase in provisions by approximately R$4.4 billion if claims from branches of companies not mentioned in the initial petition are considered enforceable[174]. - The company considers the probability of loss in certain legal proceedings as remote, estimating the amount at R$16.3 billion, with Case ROMA representing the largest portion[171]. Operational and Environmental Risks - The company is exposed to risks related to the management of socio-environmental aspects of its enterprises and projects, which could impact its operations[56]. - The company faces significant risks in the construction and operation of electricity generation and transmission facilities, including regulatory changes and supply chain issues[230]. - Environmental licensing is mandatory, with potential fines ranging from R$500 to R$10 million for non-compliance, regardless of damage caused[236]. - Inadequate environmental management can lead to severe socioenvironmental impacts, including contamination and loss of biodiversity[237]. - The company must manage operational processes effectively to avoid environmental impacts and reputational damage[237]. - Heavy rains led to operational adjustments at the Pedra plant, highlighting vulnerabilities to weather conditions[238]. - The company is subject to potential legal actions due to environmental incidents, which may further impact financial results[238]. - Compliance with environmental laws is critical to avoid shutdowns, fines, and reputational damage[240]. Financial Performance and Market Exposure - The company’s operational and consolidated financial results are dependent on the performance of its subsidiaries, affiliates, and SPEs in which it invests[50]. - The company is transitioning 17 hydroelectric plants to the Free Market, phasing out commercialization on the Regulated Market at a rate of 20% per annum starting January 1, 2023[80]. - The commercialization of energy on the Free Market is expected to become a larger portion of revenues, increasing exposure to market risks[80]. - The company has identified material weaknesses in internal controls over financial reporting, which could lead to misstatements in financial statements[85]. - As of December 31, 2022, the company has equity interests in 21 affiliates and 74 Special Purpose Entities (SPEs) that impact its financial performance[87]. - The company faces potential negative impacts on transmission revenues due to user requests for reconsideration regarding ANEEL's approved numbers[138]. - The company may incur additional costs to purchase energy due to adjustments in the assured energy of its hydroelectric plants, which are reviewed every five years[140]. Economic and Political Environment - Political instability following Brazil's presidential elections in October 2022 has led to mass protests and heightened uncertainty regarding the economic agenda of the new administration[215]. - Brazil's sovereign credit ratings are currently BB-/B (stable), Ba2 (stable), and BB- (negative), which may affect the company's cost of funding and share prices[228]. - The Brazilian government frequently intervenes in the economy, which could adversely impact the company's business and financial condition[210]. - The Brazilian economy is vulnerable to external shocks, which may adversely affect the trading markets for securities of Brazilian issuers[207]. - Brazil's annual inflation rates were 5.79% in 2022, 10.06% in 2021, and 4.52% in 2020, indicating a significant increase in inflationary pressures[223]. - The Brazilian real depreciated at a rate of 6.5% in 2021 but appreciated by 6.5% in 2022, ending the year at an exchange rate of R$5.2177 per U.S.$1.00[219]. - The company’s total consolidated indebtedness denominated in foreign currencies was R$7.5 billion as of December 31, 2022, down from R$8.3 billion in 2021[222]. - As of the date of the annual report, the company cannot assure that any compensation received for assets deemed essential public services would equal their market value, potentially affecting financial condition[200]. Project-Specific Risks - The company is required to conduct studies for the optimal utilization of its plants within 36 months and implement economically feasible projects within 132 months[61]. - The company is required to maintain existing guarantees for certain financings of Eletronuclear and raise funds for the completion of the Angra 3 nuclear power plant[60]. - The revised budget for the Angra 3 nuclear power plant totals R$29.3 billion, with an estimated operational start date pushed to July 2028[122]. - The Angra 3 project assumes a tariff to be approved by CNPE, which is critical for ensuring the project's economic viability[121]. - The company may incur unexpected expenses until the completion of the Angra 3 nuclear power plant, which has faced multiple delays[118].

Privatization and Corporate Reorganization - The Proposed Privatization is subject to a corporate reorganization and various conditions precedent, which if not met, may adversely affect future prospects and ADR prices[42] - If the Proposed Privatization is consummated, the Brazilian Government will no longer be the controlling shareholder, which may trigger bond repurchase requirements upon a change of control[42] - The company may incur significant indebtedness due to capital obligations under the Proposed Privatization, potentially impairing future fundraising capabilities[61] - The privatization process may face legal challenges, with 21 ongoing lawsuits related to the proposed privatization[80] - The privatization could lead to immediate and substantial dilution for current shareholders after the Global Offering[75] - The company may struggle to raise capital and maintain market share if the privatization is not consummated or is subsequently challenged[81] - If the Proposed Privatization does not occur, there are no guarantees that existing concession agreements will be renewed on similar terms[147] - If the Proposed Privatization is consummated, the company will no longer be a state-controlled entity and will be subject to the Brazilian Bankruptcy Law[177] Financial Liabilities and Obligations - The company faces substantial financial liabilities, which could constrain liquidity and financing for planned investments[45] - The company guarantees R$29.9 billion related to several projects structured through Special Purpose Entities (SPEs), which could adversely affect its financial condition if loans are not repaid[115] - Amazonas D's total debt to the company increased to R$6.2 billion as of December 31, 2021, due to non-payment of interest and principal, raising concerns about its ability to honor debt obligations[126] - Provisions of R$2.2 billion have been recorded for the possibility of default by Amazonas D, reflecting its financial difficulties and history of overcommitting energy purchases[127] - The company has provisioned R$33.4 billion for legal proceedings as of December 31, 2021, with R$30.6 billion related to civil claims and R$2.2 billion to labor claims[191] - The company increased its provision for compulsory loan-related litigation by R$8.9 billion during the third quarter of 2021 due to evolving judicial landscape assessments[202] - The company recorded a deficit of R$5.8 billion in its pension plans as of December 31, 2021, with contributions of R$294 million made during the same period[229] - The company may be required to make substantial contributions to pension plans if there is a mismatch in reserves[226] Regulatory and Operational Risks - Political uncertainty in Brazil may lead to economic slowdown and volatility in securities, affecting the company's operations[46] - The company is exposed to risks related to hydrological conditions that may impact hydroelectric power generation[49] - The execution of new concession contracts will be notified by ANEEL, with a 15-day window to sign, but the timing remains uncertain[62] - The company must guarantee existing obligations of Eletronuclear for the Angra 3 nuclear plant, amounting to R$6.38 billion[65] - The company is exposed to mismanagement claims related to sectoral funds and governmental programs, which could impact operational results depending on new agreements[128] - The company is dependent on third-party suppliers for key raw materials, including a single supplier for uranium, which poses operational risks[235] - The company’s insurance policies may be insufficient to cover potential losses, particularly for operational risks at the Candiota 3 plant[232] Legal Proceedings and Investigations - The company is currently involved in numerous legal proceedings, which may result in significant financial penalties and affect its operations[198] - The company may incur substantial financial liabilities related to ongoing lawsuits and investigations, which could materially affect its financial condition[196] - The company is cooperating with an SEC investigation related to its disclosures on compulsory loan credits and bearer bonds[225] - The company has not recorded provisions for lawsuits initiated by third parties regarding book-entry credits, although there is a risk of unfavorable judgments[211] - The company has classified the probabilities of loss in certain legal claims as remote and possible, but may need to increase provisions if assessments are incorrect[209] Concession Agreements and Economic Impact - The concession bonus for new contracts is stipulated at R$25.4 billion, with an additional R$32.1 billion to be paid to the CDE Account, including a R$5.0 billion payment due within 30 days of signing new concession agreements[60] - The total economic benefits from the new concession agreements are estimated to be R$67.1 billion, with obligations to contribute R$8.8 billion over ten years for revitalization projects[60] - The company will waive the right to receive indemnification payments related to current concession agreements upon executing new contracts, creating uncertainty regarding future payments[60] - The company is required to submit technical and economic feasibility studies for hydropower plants within 36 months of new concession agreements[63] - The new payment scheme approved by ANEEL is expected to impact short-term cash flows by approximately R$8.0 billion, with a payment curve reduction between July 2021 and June 2023[137] - The assured energy for hydroelectric plants decreased on average by 4% based on revised amounts from MME Ordinance No. 178/2017, which could affect revenues and expenses[157] - The Proposed Privatization may lead to new concession agreements for an additional thirty-year period, affecting plants under the quota regime[159] Internal Controls and Financial Reporting - The company has identified two material weaknesses in its internal controls over financial reporting, which could lead to misstatements in its consolidated financial statements[99] - The company may need to consolidate MESA into its financial statements, which has high levels of debt and has incurred losses, potentially increasing exposure to weak hydrology risks[109] - The outstanding balance of international bonds and debentures as of December 31, 2021, totaled US$1.33 billion and R$11.6 billion, respectively[73] - The company faces potential cross-default risks if any of the SPEs default on their obligations, which could impact its overall financial position[116] - ANEEL imposed a fine of R$51.7 million for non-compliance with the management of the CCC Account, with an appeal currently pending[132] - Indemnification payments for renewed generation and transmission concessions may not cover the investments made, with a book value of approximately R$8.1 billion for RBNI assets and R$17.6 billion for RBSE assets as of December 31, 2012[136]

Financial Performance - Net operating revenue for 2020 was R$29,080,513, a slight increase from R$29,042,129 in 2019[48] - Operating expenses for 2020 were R$26,371,596, compared to R$20,441,343 in 2019, indicating a significant rise in costs[48] - Profit before income tax and social contribution for 2020 was R$6,952,646, down from R$7,217,786 in 2019[48] - Net income from continued operations for 2020 was R$6,387,313, a decrease from R$7,848,445 in 2019[48] - Financial results showed a loss of R$1,671,646 in 2020, an improvement from a loss of R$2,448,786 in 2019[48] - The company declared a mandatory dividend of R$1.5 billion, representing 23.78% of its adjusted net income for the year ended December 31, 2020[58] - The earnings per share (EPS) for 2020 was R$4.06 for common shares and R$4.47 for preferred shares, showing a decline from R$8.12 and R$8.93 in 2019 respectively[54] Assets and Equity - The total assets as of December 31, 2020, were R$178,966,449, compared to R$178,622,483 in 2019[47] - Shareholders' equity increased to R$26,400,066 in 2020 from R$26,341,171 in 2019[47] Sales and Investments - The company generated sales proceeds of R$896.9 million from the sale of 24 SPEs in 2020[42] - For the year ended December 31, 2020, the company invested R$3,122 million in capital expenditures, with a planned budget of R$8.245 billion for 2021[166] Debt and Financial Obligations - The company incurred a total debt of R$19.7 billion related to the sale of its distribution companies, which includes R$8.5 billion in receivables from the CCC Account[104] - The company has already paid R$6.7 billion in principal and interest of the R$19.7 billion total debt, leaving an outstanding balance of approximately R$8.0 billion[106] - The company expects to receive R$1.9 billion in reimbursements from the CCC Account as of December 31, 2020, after accounting for obligations to return R$472 million[111] - The company is subject to financial covenants, including a net debt to EBITDA ratio generally fewer than four and a debt service coverage ratio higher than 1.2[176] Regulatory and Operational Risks - The company is subject to various risks, including financial liabilities and potential impacts from the privatization bill proposed by the Brazilian Government[64] - The company is subject to regulatory changes by ANEEL, which could adversely affect its operations and financial results[70] - The company is exposed to potential claims regarding mismanagement of sectoral funds and governmental programs, which it managed until April 30, 2017[116] - The Brazilian electricity sector may continue to face negative impacts from the COVID-19 pandemic, with uncertainties regarding future government actions[83] COVID-19 Impact - Brazil's GDP decreased by 4.1% in 2020 due to the COVID-19 pandemic, with initial forecasts predicting a 9% contraction[75] - Average energy consumption dropped by 15.7% from February to May 2020, but increased by 3.8% starting June 2020, ending the year with a 1.3% rise compared to January 2020[76] - The company reported no material impacts on its electric energy trading business during the pandemic, as results aligned with projections[77] - The COVID-19 pandemic has increased risks related to employee health and safety, prompting the company to implement various workplace modifications[82] Legal and Compliance Matters - The company may incur losses and spend resources defending against pending litigation and administrative proceedings[68] - The company has filed claims with ANEEL for renewed transmission concessions, with indemnification for RBNI assets paid in installments totaling approximately R$8.1 billion as of December 31, 2012[125] - The company maintains its current provision estimates for litigation concerning compulsory loan book-entry credits, primarily based on repetitive appeals, despite the unfavorable June 2019 STJ Decision[220] Future Outlook and Strategic Plans - The company aims to reduce the number of SPEs from 94 to 49 by the end of 2021 to enhance efficiency in generation and transmission assets[97] - The company plans to remedy material weaknesses in internal controls identified during the 2020 certification process by implementing a new methodology in 2021[89] - The company may experience difficulties in maintaining its market share unless changes to its capital structure are made[166] Eletronuclear Specifics - Eletronuclear invests R$100 million annually in modernization and safety requirements for its nuclear plants[191] - As of December 31, 2020, Eletronuclear's impairments totaled R$4.5 billion, with potential for additional provisions if construction on Angra III does not resume in 2021[199] - The budget for Angra III has been revised to R$27.1 billion, with R$18.5 billion pending implementation, and the expected operational date remains November 2026[203]

Debt and Financial Condition - As of December 31, 2019, the company's dollar-denominated debt increased by U.S.$126 million, totaling R$8.9 billion, which represents 21% of total consolidated indebtedness[300] - The total consolidated indebtedness reached R$9.1 billion, with foreign currency debt accounting for 21.5%[300] - Any further downgrading of Brazil's credit rating could adversely affect the company's cost of funding and the trading value of its securities[307] Economic Environment - Brazil's inflation rate for 2019 was reported at 4.31%, with historical rates showing significant fluctuations over the past years[301] - The Brazilian government maintains a tight monetary policy with high interest rates, which limits credit availability and economic growth[301] Regulatory and Compliance Risks - Regulatory changes in the energy sector are unpredictable and may materially impact the company's financial condition and operations[334] - The company is subject to administrative intervention by ANEEL if it fails to comply with service levels or contractual obligations, which could lead to loss of concessions[328] - The company is subject to penalties under ANEEL Resolution No. 846/19, which can include fines up to 2.0% of the Net Operating Revenue for the previous fiscal year[336] - Eletrosul estimated a fine of R$292.3 million related to the termination of the transmission concession agreement, with R$45.9 million provisioned as probable[337] - Eletronorte is currently suspended from participating in auctions for 12 months from December 17, 2019, while Chesf and Eletrosul face similar restrictions until December 2021 and June 2020 respectively[338] Hydrological and Energy Risks - The company is exposed to hydrological risks due to its reliance on hydroelectric power generation, which can lead to increased costs during periods of low precipitation[308] - The Energy Reallocation Mechanism mitigates risks associated with energy generation deficits, but can lead to volatility in short-term market prices[308] - The company has adhered to renegotiation of hydrological risk in the Regulated Market, which may involve transferring risks to consumers[312] Environmental and Safety Compliance - Environmental regulations are under review by the Brazilian Congress, which may lead to increased liabilities and capital expenditures for the company[351] - The company has established environmental policies and procedures for waste management and compliance with environmental laws, with the fourth Environmental Policy in force since June 27, 2019[356] - The company faces potential administrative and criminal penalties for non-compliance with safety, health, and environmental laws, which could adversely affect its operations and reputation[353] - Changes in environmental regulations or enforcement policies could materially adversely affect the company's operations and financial condition[358] Cybersecurity and Information Security - The COVID-19 pandemic resulted in approximately 70% of employees working from home, necessitating updates to communication and information security protocols[347] - The company has implemented an information security program based on the NIST CyberSecurity Framework, monitored quarterly by the Board of Directors[345] - The company is aware that costs related to addressing cyber risks could be significant, and it currently lacks specific insurance coverage for such risks[346] Shareholder and Dividend Policies - The company must pay shareholders a mandatory distribution equal to at least 25% of adjusted net profit for the preceding fiscal year, with preferred shares having priority[369] - If the company incurs net losses or insufficient net profits, it may not pay mandatory dividends, as seen in the year ended December 31, 2018[370] - The company may create a reserve of unrealized profits if net income is characterized as not financially realized, which can be used to absorb losses[371] - Preemptive rights related to preferred or common shares may not be exercised unless a registration statement under the Securities Act is effective[372] - Changes in Brazilian tax laws could impose income tax on gains from the disposition of shares by non-residents, potentially affecting the sale of ADS[373] Foreign Investment and Remittance Risks - The Brazilian Government previously imposed remittance restrictions for approximately three months in late 1989 and early 1990, which could adversely affect holders of ADS[365] - Holders of ADS may face unfavorable consequences if they exchange ADS for underlying shares, as they would lose the custodian's electronic certificate of foreign capital registration after five business days[366]

Financial Performance - Net operating revenue for 2018 was R$24.98 billion, a decrease of 15.5% from R$29.44 billion in 2017[30] - Operating expenses for 2018 were R$11.04 billion, significantly reduced from R$25.91 billion in 2017[30] - Net income from continuing operations for 2018 was R$12.26 billion, compared to R$1.45 billion in 2017, marking an increase of 748%[30] - The company reported a net income of R$13.35 billion for the period, a significant recovery from a loss of R$1.73 billion in 2017[30] - Total current assets increased to R$46.85 billion in 2018, up from R$37.36 billion in 2017, representing a growth of 25.5%[29] - Total liabilities decreased to R$125.20 billion in 2018 from R$130.22 billion in 2017, a reduction of 3.9%[29] - The company’s financial result improved to a loss of R$578.07 million in 2018, compared to a loss of R$1.74 billion in 2017[30] Asset and Investment Overview - Total assets as of December 31, 2018, were R$181.21 billion, up from R$172.98 billion in 2017, reflecting a growth of 4.3%[29] - Cash and cash equivalents decreased to R$583.35 million in 2018 from R$792.25 million in 2017, a decline of 26.4%[29] - The company invested R$4.6 billion and R$5.2 billion in capital expenditures in 2018 and 2017, respectively, with a budget of R$5.7 billion for 2019 to maintain market share[52] - The company may need to invest approximately R$14 billion annually to maintain its current market shares of 30.5% in generation and 47.3% in transmission segments[52] Regulatory and Compliance Issues - The company identified a material weakness in its internal controls, which could affect the reliability of its financial statements if not remedied[34] - The company is subject to rules limiting its indebtedness and must submit annual budgets for approval by the Ministry of the Economy and the Brazilian Congress[59] - The company has faced challenges in complying with financial ratios required by certain financing agreements, necessitating waivers from creditors[59] - The company is at risk of future anti-corruption actions that could result in significant fines, reputational harm, and operational distractions[58] Market and Economic Conditions - Brazil's economy contracted by 3.9% in 2015 and 3.6% in 2016, with a rebound of 1% in 2017 and 1.1% growth by December 31, 2018[74] - The Brazilian real depreciated by 32% in 2015, appreciated by 20% in 2016, and further depreciated by 17.1% in 2018, highlighting significant currency volatility[80] - Political corruption allegations have created instability, affecting investor confidence and potentially leading to economic slowdowns[72] - Changes in tax laws and potential increases in tax burdens could adversely affect the company's profitability and operational capacity[80] Operational Challenges - The company is exposed to potential losses of R$2.2 billion related to the inefficiency clause for Amazonas D if Provisional Measure No. 879/19 is not converted into law[41] - The average physical guarantee for the company's hydroelectric plants decreased by 4% compared to the original amount, which could impact revenues and expenses due to energy purchase requirements[49] - The company is exposed to risks related to the construction and operation of electricity generation facilities, including delays and cost overruns due to regulatory and environmental challenges[84] Environmental and Safety Regulations - The company has implemented environmental policies and management procedures to comply with safety, health, and environmental laws, but non-compliance could lead to significant penalties and reputational damage[91] - Environmental regulations require the company to obtain licenses for new facilities, and the current review of environmental legislation by the Brazilian Congress may impact operations and financial results[91] - Eletronuclear invested R$100 million annually in modernization and safety requirements for nuclear plants[62] Strategic Initiatives - The medium-term strategic plan (PDNG 2019-2023) focuses on profitable growth, operational excellence, governance enhancement, sustainable performance, and personnel appreciation[60] - The company aims to achieve a global leadership position in clean energy production by 2030, while maintaining competitive rates of return[109] - The company is actively pursuing market expansion through investments in new energy projects, with a focus on sustainability and efficiency[165] Divestment and Asset Sales - The company sold six distribution companies for an aggregate sale price of R$273 thousand and 26 SPEs for R$1.3 billion, as part of its strategy to divest non-core assets[109] - The company auctioned its participation in several distribution companies, assuming debts totaling R$13.2 billion, including R$10.5 billion for Amazonas D and R$2.1 billion for Ceron[40] - The company raised approximately R$1.3 billion from the sale of interests in 71 Special Purpose Entities (SPEs) in September 2018[160] Electricity Generation and Supply - The company generated 71% of its energy from renewable sources in 2018, including 89% from hydroelectric power[109] - Total electricity generated in 2018 was 135,786,836.38 MWh, an increase from 133,952,710.37 MWh in 2017, with hydroelectric generation at 106,735,388.94 MWh[123] - The installed capacity of the company was 49,801 MW as of December 31, 2018, with an additional 5,850 MW planned for development by 2026[115] Financial Liabilities and Debt Management - As of December 31, 2018, the company recorded total loans of R$13.9 billion, compared to R$10.3 billion in 2017 and R$13.2 billion in 2016[158] - The consolidated long-term debt was R$42,306 million as of December 31, 2018, up from R$39,236 million in 2017 and R$39,787 million in 2016[160] - The company’s foreign currency debt in U.S. dollars was 25% of the total debt as of December 31, 2018[160] Customer and Market Dynamics - The distribution network served 1,001,390 consumers in Amazonas D and 1,158,036 in Ceal as of December 31, 2018[145] - Total electricity losses for the distribution business were 34.4% in 2018, an increase from 32.7% in 2017 and 26.2% in 2016[149] - The average response time to restore electricity supply in Amazonas D was 669.51 minutes in 2018, an increase from 396.77 minutes in 2017[150]