Strategy and
Business Model

Our actions are guided by strategic guidelines aligned with our organizational vision and the social, economic, and regulatory context, considering risks and opportunities. We follow our Sustainability Policy, which guides our practices towards a culture focused on the long-term survival of the business, the planet, and people.

Norte Energia's value creation model is based on the International Framework for Integrated Reporting, which identifies six capitals as stocks of value: manufactured, natural, human, intellectual, social and relationship, and financial. Through the integration of these capitals, we conduct our renewable energy generation and trading activities, generating value for the Company, shareholders and other stakeholders.

Our scope of business involves producing renewable energy for millions of Brazilians, promoting socioeconomic development initiatives, and investing in environmental projects aligned with the principles of sustainability and corporate responsibility, seeking to generate lasting positive impacts.

Hydroelectric power plants have been the basis of electricity generation in Brazil since the creation of the Brazilian Electric System. Belo Monte stands out, the largest fully domestically-owned hydroelectric power plant and a structuring project for the sector, which, at certain times, reached up to 16% of the country's energy supply in 2024.

In 2024, Norte Energia was engaged in several actions and processes, including:

• the Company contributed BRL 16 million to the development of 16 research, development and innovation projects, highlighting the completion of the Poraquê Catamaran, the first fully electric and sustainable passenger transport vessel in the Amazon region, representing a significant advance in technological development aimed at low-impact river mobility in Brazil;
• Conducting studies on proposals to improve ancillary services provided by generators to the ONS, that is, complementary services that ensure the proper functioning of the electrical system;
• Participation in the Technical PMO/PLD (Monthly Energy Operation Program/Differences Settlement Price) Committee, coordinated by the ONS and the Electric Energy Commercialization Chamber, with studies conducted by technical groups on distributed generation, power plants, variable costs, governance, hydrometeorological data, hydrological scenarios and hydraulic restrictions;
• Participation and implementation of task force studies involving the improvement of energy optimization models; and
• Validation of new versions of energy optimization models.

Furthermore, the Company played an active role in regulatory discussions and submitted contributions to several public consultation processes, both by Aneel and the Ministry of Mines and Energy.

The Company's most prominent activities include participating in the preparation of Aneel's Regulatory Agenda for the 2025/2026 biennium. Also noteworthy is the work on topics such as the provision of ancillary services, operation of thermoelectric plants, and improvement of the rules applicable to small-scale electricity generation systems (distributed micro- and mini-generation).

The Company also acted through trade associations (e.g., Abrage, Apine, Abiape, ABCE and Abraceel) in other relevant discussions in the sector, such as the Public Consultation on the Capacity Reserve Auction and, in the legislative sphere, Provisional Presidential Decrees 1212/2024 and 1232/2024 (EU 19).

The energy generated by the Belo Monte Hydroelectric Power Complex is marketed in a variety of ways:

• 70% in the regulated market, through Energy Purchase Agreements in a Regulated Environment, serving 26 states and the Federal District through 45 distributors;
• 10% allocated to self-producers and direct or indirect partners of Norte Energia; and
• 20% for energy trading in the free market and hydrological risk management (GSF) (GRI 2-6).

In 2024, Norte Energia sold 32,121 GWh of energy in the regulated contracting environment, to self-producers and partners of the Company, in addition to 11,788 GWh in the free market. This performance represented a 10.6% increase in energy sales volume compared to 2023.

Renewable Energy Certificates attest to the origin of the renewable energy generated by Belo Monte and can be used by consumers to offset Greenhouse Gas (GHG) emissions within scope 2, regarding electricity consumption.

In 2024, we sold 2.8 million renewable energy certificates (REC) through assignment and retirement processes, which placed the Company as one of the major drivers of this market in Brazil.