EDP Energias do Brasil S A : 4Q20/2020 Market Release

4Q20 Operational Release

São Paulo, January 21, 2021 - EDP Energias do Brasil S.A. ("EDP" or "Company") (B3: ENBR3) announces information on the electric energy market for the fourth quarter of 2020 ("quarter") and fiscal year 2020 ("year") for the Company's business segments.

Distributed energy volume was up 1.9% in the quarter, of which 2.5% at EDP São Paulo ("EDP SP") and 1.0% at EDP Espírito Santo ("EDP ES"). In the year, the distributed energy volume was down 4.6%, (-3.4% at EDP SP and -6.3% at EDP ES).

						EDP Distribution
		Volume (MWh)				Volume (MWh)				Consumers (unit)
		4Q20		4Q19		Var	2020	2019		Var	2020	2019		Var
Residential	1,724,938	1,602,950	7.6%	6,561,800	6,317,972	3.9%	3,080,991	3,010,399	2.3%
Industrial	2,898,984	2,796,348	3.7%	10,510,021	11,238,347	-6.5%	24,287	24,586	-1.2%
Free	2,525,342	2,378,594	6.2%	9,104,583	9,519,835	-4.4%	646	537	20.3%
Captive	373,643	417,754	-10.6%	1,405,439	1,718,512	-18.2%	23,641	24,049	-1.7%
Commercial	1,052,605	1,118,726	-5.9%	3,846,575	4,310,777	-10.8%	265,484	261,144	1.7%
Free	275,680	259,741	6.1%	994,854	993,603	0.1%	633	484	30.8%
Captive	776,925	858,985	-9.6%	2,851,721	3,317,173	-14.0%	264,851	260,660	1.6%
Rural	242,640	255,727	-5.1%	930,731	1,005,076	-7.4%	201,139	199,886	0.6%
Others	523,703	553,487	-5.4%	1,974,193	2,116,034	-6.7%	28,908	28,444	1.6%
Free	88,842	88,008	0.9%	343,146	317,929	7.9%	17	11	54.5%
Captive	434,860	465,479	-6.6%	1,631,047	1,798,105	-9.3%	28,891	28,433	1.6%
Permissionary	13,103	12,953	1.2%	48,348	45,218	6.9%	-	-
ConcessionariesGeneration	142,555	137,374	3.8%	549,513	558,069	-1.5%	-	-
Total Energy Distributed	6,598,528	6,477,565	1.9%	24,421,182	25,591,493	-4.6%	3,600,809	3,524,459	2.2%
Free - Total	3,032,419	2,863,717	5.9%	10,992,096	11,389,437	-3.5%	1,296	1,032	25.6%
Captive - Total	3,566,109	3,613,848	-1.3%	13,429,086	14,202,056	-5.4%	3,599,513	3,523,427	2.2%
							EDP São Paulo
		Volume (MWh)				Volume (MWh)				Consumers (unit)
		4Q20		4Q19		Var	2020	2019		Var	2020	2019		Var
Residential	1,067,101	976,866	9.2%	4,058,657	3,836,965	5.8%	1,810,472	1,770,287	2.3%
Industrial	1,929,900	1,848,122	4.4%	6,886,220	7,257,126	-5.1%	13,788	13,517	2.0%
Free	1,682,493	1,560,067	7.8%	5,955,261	6,075,856	-2.0%	431	356	21.1%
Captive	247,408	288,055	-14.1%	930,960	1,181,270	-21.2%	13,357	13,161	1.5%
Commercial	644,985	688,755	-6.4%	2,334,730	2,631,130	-11.3%	136,025	133,094	2.2%
Free	175,807	169,450	3.8%	630,760	650,541	-3.0%	356	266	33.8%
Captive	469,178	519,305	-9.7%	1,703,971	1,980,589	-14.0%	135,669	132,828	2.1%
Rural	15,998	18,963	-15.6%	61,892	79,381	-22.0%	5,293	4,912	7.8%
Others	291,762	323,480	-9.8%	1,143,418	1,225,622	-6.7%	14,898	14,441	3.2%
Free	79,654	88,008	-9.5%	328,825	317,929	3.4%	11	11	0.0%
Captive	212,109	235,473	-9.9%	814,593	907,693	-10.3%	14,887	14,430	3.2%
Permissionary	13,103	12,953	1.2%	48,348	45,218	6.9%	-	-
ConcessionariesGeneration	93,180	89,866	3.7%	364,877	353,973	3.1%	-	-
Total Energy Distributed	4,056,030	3,959,004	2.5%	14,898,143	15,429,414	-3.4%	1,980,476	1,936,251	2.3%
Free - Total	2,031,134	1,907,390	6.5%	7,279,723	7,398,300	-1.6%	798	633	26.1%
Captive - Total	2,024,896	2,051,614	-1.3%	7,618,421	8,031,115	-5.1%	1,979,678	1,935,618	2.3%
						EDP Espírito Santo
		Volume (MWh)				Volume (MWh)				Consumers (unit)
		4Q20		4Q19		Var	2020	2019		Var	2020	2019		Var
Residential	657,836	626,085	5.1%	2,503,143	2,481,008	0.9%	1,270,519	1,240,112	2.5%
Industrial	969,084	948,226	2.2%	3,623,801	3,981,221	-9.0%	10,499	11,069	-5.1%
Free	842,849	818,527	3.0%	3,149,322	3,443,979	-8.6%	215	181	18.8%
Captive	126,235	129,699	-2.7%	474,479	537,242	-11.7%	10,284	10,888	-5.5%
Commercial	407,620	429,971	-5.2%	1,511,845	1,679,646	-10.0%	129,459	128,050	1.1%
Free	99,873	90,291	10.6%	364,094	343,062	6.1%	277	218	27.1%
Captive	307,747	339,680	-9.4%	1,147,750	1,336,585	-14.1%	129,182	127,832	1.1%
Rural	226,642	236,764	-4.3%	868,839	925,695	-6.1%	195,846	194,974	0.4%
Others	231,940	230,007	0.8%	830,775	890,412	-6.7%	14,010	14,003	0.0%
Free	9,189	-			14,321	-			6	-
Captive	222,752	230,007	-3.2%	816,454	890,412	-8.3%	14,004	14,003	0.0%
ConcessionariesGeneration	49,375	47,509	3.9%	184,636	204,096	-9.5%	-	-
Total Energy Distributed	2,542,498	2,518,560	1.0%	9,523,038	10,162,079	-6.3%	1,620,333	1,588,208	2.0%
Free - Total	1,001,286	956,326	4.7%	3,712,374	3,991,137	-7.0%	498	399	24.8%
Captive - Total	1,541,212	1,562,234	-1.3%	5,810,665	6,170,942	-5.8%	1,619,835	1,587,809	2.0%

1

4Q20 Operational Release

Industrial	Commercial
44%	16%
	Rural
	4%
	Others
	8%
	Perm. +
	Concessionaries
	2%
	Residential
	26%

Industrial	Commercial
16%
48%
	Rural
	0%
	Others
	7%
	Perm. +
	Concessionaries
	3%
	Residential
	26%

Commercial

16%

Industrial

38%

Rural

9%

Others

9%

Concessionaries

2%

Residential 26%

The consumption of distributed energy in the quarter reflected the economic upturn from the year's previous quarters, due to the gradual resumption of commercial and industrial activity over the course of the third quarter.

Despite the recovery, the year's results reflect the negative effects of the novel coronavirus ("COVID-19") pandemic, characterized by the preventive and social distancing measures adopted domestically, leading to contracting industrial output1 and reduced retail activity2. Furthermore, weather conditions, marked by mild temperatures, also contributed to the result, despite a 2.2% increase in the number of clients.

The number of free clients was up 25.6% (165 clients at EDP SP and 99 clients at EDP ES) because of captive clients migrating to the free market.

up de 2.5% and down 3.4%, in the quarter and the year, respectively, due to the effects of the preventive and social distancing measures adopted to prevent the virus from spreading.

• Residential: the 9.2% and 5.8% gains in the quarter and the year, respectively, reflect the expanding number of clients (2.3%) and greater number of average billing days (+1.3 day). In addition, the social distancing measures that were encouraged as preventive steps against the COVID-19 pandemic caused the population to stay at home, leading to increased class consumption. In the quarter, higher temperatures (+0.8°C maximum temperature in Guarulhos) contributed to increased consumption;
• Industrial: the 4.4% increase in the quarter reflects the manufacturing sector' recovery, with 21 industries out of a total 37 showing consumption increase. In the year, the 5.1% decrease is a result of the economic downturn and the stoppage of several manufacturing plants, despite the recovery seen over the course of the second half of the year. In the year, the industries that contributed the most to consumption in this class were automotive vehicles (-23%) and metallurgy (-8%);
• Commercial: the 6.4% and 11.3% decreases in the quarter and the year, respectively, are a result of social distancing measures, despite the easing thereof and gradual reopening of retail. A sharp recovery of retail and consumption from the previous quarter could already be detected;
• Rural: The 15.6% and 22.0% decreases in the quarter and the year, respectively, reflect client reclassification; and
• Other: the 9.8% and 6.7% decreases in the quarter and the year, respectively, reflect the effects of social distancing measures as mentioned in connection with the previous classes.

up 1.0% and down 6.3% in the quarter and the year, respectively, due to the impacts of the pandemic, despite the easing of isolation measures that helped consumption improve.

1 In November/20, after seven months of gains, the manufacturing sector's accumulated growth was 40.7%. This more than offset the 27.1% loss seen in March and April, which brought output to its lowest levels in the series. Source: IBGE. Monthly Industrial Survey - Brazil. Physical Output Indicator - Brazil.

2 Trading was up 8.3% in October/20 from October/19, reaching the fifth consecutive positive rate and the highest for a month of October since 2012 (9.2%). Source: IBGE. Monthly Commerce Survey - Brazil. Retail Sales Volume Indicator - Expanded.

2

4Q20 Operational Release

• Residential: the 5.1% and 0.9% gains in the quarter and the year, respectively, reflect the expanding number of clients (+2,5%) and to the social distancing measures that were encouraged as preventive steps against the COVID-19 pandemic, which caused the population to stay at home and led to increased class consumption. Milder temperatures (-0.9ºC in the quarter and -1.4°C in the year, maximum temperatures in Vitória) and the reduced number of average billing days (-0.9 days in the quarter and -0.6 day in the year) impacted the consumption negatively;
• Industrial: the 2.2% gain in the quarter reflects the larger number of average billing days for medium and high voltage (+2.8 days), as well as increased consumption from large clients in non-metal mineral, metallurgy and chemicals industries, due to the gradual recovery of manufacturing activities. The year's 9.0% decrease is due to gradually reduced consumption from Vale because of developments arising from the stoppage at Brumadinho-MG, mitigated by increased consumption from self- generation clients. Excluding Vale's gradual consumption decrease, consumption would have increased by 10.4% and 1.4%, in the quarter and the year, respectively;
• Commercial: the 5.2% and 10.0% decreases in the quarter and the year, respectively, are a result of social distancing measures, despite the easing thereof and gradual reopening of retail. In addition, the effect of milder temperatures in the state compared with the previous year also contributed to the decrease;
• Rural: the 4.3% decrease in the quarter is due to the reduced average number of billing days for low voltage (+0.6 day). The year's 6.1% decrease is due to the increased rainfall (+49 mm in the Linhares region versus the previous year), leading to reduced electric energy consumption for irrigation purposes; and
• Other: the 0.8% increase in the quarter reflects the greater average number of billing days for low voltage (+2.4 days) and high voltage (+4.3 days). In the year, the 6.7% decrease is due to the effects of social distancing measures and to milder temperatures, as noted previously.

5,645
687
1,358	3,694
	673
	1,358
3,601
	1,664
4Q19	4Q20

Jari, Cachoeira Caldeirão and São Manoel HPP's

Total TPP

Total HPP's

		28%	28%
		27%
			26%
24%	23%
22%
	22%
1Q	2Q	3Q	4Q
	2019	2020

On a consolidated basis, energy sales volume was 1,664 GWh, down 53.8% in the quarter, due to the lower volume of energy sold from Energest (-745.3 GWh), Enerpeixe (-664.3 GWh) and Lajeado (-527.0 GWh), due to the lower volume of bilateral agreements with market players and the Company's trading company. Considering the unconsolidated projects,3 the volume was down 2.1%.

In the year, the volume of energy for the consolidated entities was 6,602 GWh, down 37.5%, under the effects mentioned earlier. Considering the unconsolidated projects, volume was down 1.7%.

It is worth emphasizing that the Company's seasonality strategy was to allocate more energy to the latter half of 2020, as mentioned in the previous quarter's operational release.

3 Considers stakes in the Jari, Cachoeira Caldeirão and São Manoel HPPs

3

4Q20 Operational Release

Average GSF was 68.3%4 in the quarter, producing an exposure of 648.3 GWh5 at an average PLD of R$ 352.35/MWh (SE/CO submarket). In the year, average GSF was 79.9%, producing an exposure of 1,445.0 GWh at an average PLD of R$ 176.85/MWh (SE/CO submarket).

The Plant's average uptime in the year was 91.9% because of the corrective maintenance works on UG02 in January and February.

92.9%	91.6%	92.3%	83.4%		92.4%	98.1%	95.2%	95.7%	88.1%	91.9%
77.2%	80.3%

2017	2018		2019	2020
	GU01	GU02	Average TPP

The volume of energy traded was 4,854 GWh in the quarter, down 55.9%, due to the volatile energy prices that led to increased credit risk amongst market peers, and due as well to protective steps taken against a defaults scenario that led to a reduction in trading volumes.

In the year, the volume of energy traded was 25,554 GWh, up 6.3%. The year 2020 was marked by the pandemic and a world economy downturn. EDP embraced emergency initiatives and resources to support its consumers and business partners. Over the year, energy prices experienced volatility, which created good business opportunities with solid partners and, consequently, a slight increase in energy trading.

4 Weighted average

5 Excludes the Jari, Cachoeira Caldeirão and São Manoel HPPS

4