Material Facts

Material Facts – Cancellation of Espra transaction

Renova Energia S.A. (RNEW11) (“Renova” or “Company”), the biggest company in terms of renewable energy contracted installed capacity in Brazil, in accordance to Instruction CVM No. 358/2002, as amended, informs to shareholders and the market in general that, on this date, the purchase and sale of shares for the sale of the assets of ESPRA project ( “Agreement ESPRA”) owned by Renova to Terraform Global, Inc. ( ” terraform Global “) was terminated by an agreement between the parties, upon a break up fee payment in the amount of $ 10.00 million to Renova. In this way, the Espra projects (three small hydroelectric contracted under PROINFA, with 41.8MW installed capacity), remains in the Company and return to compose the Renova’ portfolio of operational assets.

The Espra Agreement was covered in the first phase of the transaction with Terraform Global and SunEdison, Inc. (“SunEdison”) announced on July 15, 2015.

The Company also informs that has notified SunEdison and Terraform Global of its intention to exercise the option to sell 7 million Terraform Global’s shares held by the Company as provided in the contract and as disclosed in the Material Fact published by Renova on 18 September 2015. SunEdison will have 60 days to settle the transaction, given that SunEdison may, at its exclusive discretion, choose the price per share of US$ 15.00 or R$ 50.48.

Further clarifications on the Transaction may be discussed with the Company.