\mellifluent f:-f Page 390 of 868 Renova Energy Projects I Notes to the unaudited condensed combined interim financial statements (Thousands of Brazilian Rears - RS. unless otherwise stated) 1. Organization and description of business Renova Energy Projects I (the 'Group' or Ire 'Company') comprises the operating assets. Imbibes and operating acentres of Energetic. Serra do Prata S.A (Ewe). Salvador Ealca ParbapagdeSS A (- Salvador), Bahia poloa pancipagdes S A rearm ), all indirect-wholly-owned Braaten subsdurnes of Renova Erverge S.A (Remove' or 'Pared), a Braden listed company engaged in the developrrent, implementation and operation of posed, for the generation of energy from renewable sources, inciuding wind smell hydroelectric power pants (SHPPr) and solar, and n the sale of power and related activities The Group is engaged ri the construction and operation el renewable energy generation projects. through SI-PPs and wend energy facilities. all located n Break and conducts its operations through various wholly-owned project convenes under authorizations granted to them 30 years from 2003 in the case of small hydroekenc power plants and 35 years from 2010 in the case d weld energy facilities Small Holnaeleoble Power Plents—Through Eton, ire Group sells electno energy generated from its Serra da Praia Hydroelectne Corrptex, cionsaating of three Sl-PPs boated in the State of Bahia which began operations o 2008 NI energy generated from the complex is sold under longterm power pactese agreements ('PPM) with Elettobas—Centras &anon &satiates S A, under the Brazilian AJterriatwe Electnc Power Source Incentive Program (Program de Incenevo as Fortes Aitemettwas de Energra aftnca—PROINFA) The PPM ha.* an original term of 20 years through 2028 and include a fixed price per megawatt hour. adjusted annually for abhor, based on the change in the Brazilian General Market Price Index—IGPLI Wind Energy Feellitles—Throup Bahia and Salvador, the Group sees elect