Amendment 114 Page 598 of 868 I xl)l) ..)!C))))t.t», Renova Energy Projects I Notes to the combined financial statements For the years ended December 31, 2014 and 2013 (Thousands of Bravi ien Reais - RS, unless othernl se stated) 1. Organization and description ot business Renova Energy %tees I (the 'Croup or the 'Company') comprises the opetatng esses. lot( thes and cperating actvites of Energatica Serra do Praia S A f EspreF), Salvador EdIca Pans:II:00es S A (Salvador'), Bahia EdIca PartodeareõeS S A Batte), an indirect-wholty-ovened Brarrian subSideres of Renova Energia S A (•Rerova" or 'Parent'), a Brazien listed cornpany engagea e the devesipment implerre thon and operatron ot prompts ria lhe generatron of energy from rerewaore sca(ces rticluclog mre smart Frydroelectro poser plants CSHPP)S ) and soar. and in toe sare 0f power and related acavares The Group is engaged o the construct on and operation cl renewable energy generzeon prqeds throi.gh SHPPs and wind energy facilita ail lccaled n Brand and corOucts es operatons Ihrough vanous whdly-owned trope comparses inter aulhonzahons grarted to them 30 years from 2003 n Ire case of smart hydroeletnc power plants and 35 years from 2010 in the case of wed energy facilites Smog Hydsoelectric Power Plants—Through Espar, Ife Gtoup sens electnc energy generated from te Serra da Prata Hydroelectnc Corrolex ciensnung of ttsee SFPPs acated n Ire State of Bahia vilsch began operations in 2008 An erergy generated from the complet is sold under longterm power purchase agreements (•PPAW) %se Eierrozres—Cenuas Efienas BrastOttas S A under the Bran I o n AltematNe Salez Power Source 'mentait, Program (Programa de fixent/vo4s Fontes Men-amas de Energra E.Otnce—PRO/NFA) ire PPAs have an orignal terni of 20 yearsthrcue 2028 and cistude a fixed once per megawan Itut adostedannually for inflation teSed on the aune) n trie S'aiglon General Marke Pope Index—IGPM WInd Energy FaelMtles—Tnrough Bilha and Salvador the