Last week, The Ministry of Mines and Energy has determined the schedule of the new energy

auctions that will happen in 2019 and in the next couple years.

The first one will be held in the end of June of the current year and will be an A-4. The auction
A-4 is to explain when will start the PPA. Thus, the A-4 of 2019 will have the start of supply on
2023.

The difference between the type of each auction energy (new or existing) is based that the
existing energy auction just considers power plants that already been operating. At the same
way, the new energy auction sells contracts from projects of power plants, so those haven’t
been built yet.

The existing energy auction is more utilized to adjust the portfolio of distributors’ players and
the PPA’s duration is about one or two years. This type of auction is A-1 or A-2 (there was A-0
just once a time).

On the other hand, the supply of new energy auction is for the long term (about 20 or 30
years) and it must guarantee the higher consumption of the country in the future.