7882

Contents
2011 Management Report......3 Independent Auditors Report on Financial Statements .........23 Balance Sheet ...................25 Statements of Income and Comprehensive Income ......27 Statements of Changes in Consolidated Shareholders Equity ...29 Statements of Cash Flows .......30 Statements of Added Value .31 Notes to the Financial Statements ..32
MESSAGE FROM THE MANAGEMENT
Dear Shareholders, During this quarter, we concluded the process of Light Energias investment in the Company, which involved a capital injection of R$ 360 million and a commitment to purchase 400MW of the installed capacity from Renovas wind power generating facilities. The capital injection will be used in the investments required to harness 1,069MW of wind energy, already sold via longterm agreements. The commitment to purchase 400MW represents our debut into the free market. We believe this market will be important to leverage Renovas growth with support from Light Energia and Cemig (which is part of Light Energias controlling group), together making up the countrys largest energy trading force. The synergies obtained by linking up with the Light Energia/Cemig group go beyond combining Renovas capacity for initiating projects with Cemigs strength in the free market. In addition they give Renova access to the soundness and technical and execution expertise of the groups companies. We were also successful in the A-3 auction held in August, when we sold 103.6 MW average of energy originated from nine wind farm projects located in upstate Bahia, where Renova maintains its other wind energy generation facilities. While energy sourced from biomass plants, small hydroelectric plants and thermo-electric and gas plants was also auctioned, the highlight was the wind energy, responsible for 29% of total sales at an average price of R$101,96/MWh (ICB), an indication of its growing competiveness with other sources of energy. The reserve energy auction, which was held the day after the A-3 auction, also contracted a significant quantity of wind energy projects, a source which represented 73% of the energy sold. In the context of the prices obtained in the two auctions, wind energy is now positioned as an important alternative for meeting the full energy demands of the country as opposedto being limited only to specific auctions for alternative energy sources, as had been the case previously. A large portion of this price competitiveness is related to the maturing of the productive chain in Brazil, in addition to the presence of international equipment suppliers and regulatory stability. On September 28, the National Bank for Economic and Social Development - BNDES approved long-term financing of R$ 297.4 million to build five wind farms, which finalized the financial structuring of the 14 wind parks complex, for which the Company successfully bid at LER 2009. Construction is on schedule and the process of erecting and installing the wind turbine generators has already started. The complex, which features a total installed capacity of 294MW, should begin operations in July, 2012. We are highly optimistic regarding the development of renewable energy in Brazil. We will continue our endeavors to create value for our shareholders through our pioneering actions and the development of profitable projects, while remaining committed to the highest standards of sustainability and corporate governance.
1. Highlights in Detail:
1.1. Conclusion of a strategic agreement with Light Energia, which invested R$ 360 Million in Renova and committed to purchase 400MW of installed capacity in exchange for 25.8% of the Companys total capital stock
On August 17, 2011, Renova Energia (Renova or Company) and Light Energia signed a strategic agreement through which Light Energia invested in Renova, with the purpose of accelerating the Companys development and making Renova its alternative energy platform. The strategic agreement was finalized via the subscription of 50,561,798 common shares at a Renova per-share price of R$ 7.12 (equivalent to R$ 21.36 per unit), amounting to a total investment of R$ 360 million. Light Energia joined RR Participaes in the controlling bloc of Renova and will participate in the equivalent of 34.5% of the voting capital and 25.8% of Renovas total capital. Light Energia and RR Participaes jointly own 69% of Renovas voting capital. In addition to the capital injection, the agreement also includes a commitment by Light Energia to purchase 400MW of installed capacity of Renovas portfolio of projects to come on stream in 2015 and 2016. The partnership has generated synergies both for Light Energia and also Cemig, a company that comprises the controlling bloc of Light Energia. Cemig has almost 20 years experience in wind energy generation and 60 in the generation of hydroelectricity as well as being the largest seller in the Brazilian free market, including sales of incentivized energy (1a).
1.2. Sale of energy supplied by nine of Renovas wind farms for a total of 103.6 MW average at the A-3/2011 auction At the A-3/2011 auction, Renova sold 103.6 MW average of energy to be generated by nine wind farms, all located in the state of Bahia and scheduled to begin operations as of March 2014. Once operational, these farms will generate an annual gross revenue estimated at R$ 91.6 million (at current prices). The agreements, expiring after 19 years and 10 months, and resulting from the auction will be signed with electric energy distributors based on energy requirements declared to the Ministry of Mines and Energy MME.
(1a)
Based on the total amount sold in 2010.
1.3. Registration of 10 wind farms with an installed power generation capacity of 211.2MW, at the 2011 A-5 auction To permit participation in the A-5/2011 auction, Renova registered10 wind farms together totaling 211.2MW of installed capacity. The farms are located in the same area as those wind farms already selling energy and can potentially benefit from the resulting synergies. 1.4. Approval of financing for five wind farms, with energy sold at LER 2009, by BNDES amounting to R$ 297.4 million; and On September 28, 2011 the executive board of the BNDES approved the financing of the wind farms at Candiba, Ilhus, Igapor, Licnio de Almeida and Pinda. The consolidated funding of the five wind farms amounts to R$ 297.4 million and represents approximately 70% of the total investment. These five farms are part of a wind energy complex comprised of 14 generating units with an installed capacity of 293.6MW, currently under construction and expected to be operational by July, 2012. 1.5. Initial work on the assembly and installation of the turbine generators for the LER 2009 wind farms During the third quarter 2011, work on the 14 wind farms, for which Renova made successful bids at the LER 2009 progressed according to schedule. We concluded the concrete foundations for 75 of a total of 184 turbine generators as well as 35% of the electricity infrastructure (substations and transmission lines), and seven out of a total of 12 elevator transformers were delivered.
2. Analysis of the Consolidated Income Statement
Renova Energia S.A.
(Amounts in R$ mils.) Gross Operating Revenue (-) Taxes - Pis e Cofins Net Operating Revenue Non-manageable costs Manageable costs Depreciation Operating profit Administrative expenses Administrative Depreciation Financial revenue / (expenses) Equity income Non-operating expenses Income Tax and Social Contribution Net Profit / (Loss) Energy sold (MW hour) Headcount
Controlling Entity 3Q11 3Q10 (4.7) (0.4) 5.0 3.3 (0.1) 3.1 98 (4.6) (0.1) 1.6 2.6 (0.1) (0.5) 63
Consolidated 3Q11 3Q10 9.9 (0.4) 9.5 (0.3) (1.1) (1.4) 6.7 (5.4) (0.4) 3.6 (0.2) (0.8) 3.5 56,107 98 9.4 (0.3) 9.0 (0.3) (0.9) (1.4) 6.4 (4.9) (0.1) (1.0) (0.1) (0.4) (0.2) 56,107 63
During the third quarter of 2011 the Company reported a net income of R$ 3.5 million, a yearon-year improvement of R$ 3.7 million, primarily the result of financial revenues in the period. 2.1. Consolidated Net Operating Revenue Consolidated net operating revenue in the 3Q11 was R$ 9.5 million, in line with the same period in 2010. This amount was generated by the controlled company, Energtica Serra da Prata S.A. ESPRA, as a result of an energy purchase agreement signed with Eletrobrs under the terms of PROINFA (Incentive for Alternative Electric Energy Sources Program) . The agreements current tariff is R$ 182.06/MWh. These agreements are restated annually in June, according to the variation in the - IGP-M inflation index. 2.2. Consolidated Expenses We have separated the energy production costs into manageable and non-manageable. Non-manageable costs correspond to (i) the tariff paid for the use of the distribution system (TUSD), in this case, Coelbas distribution system, the concessionaire to which the small hydroelectric plants (SHPs) are connected and (ii) the inspection fee charged by ANEEL. Both these costs are incurred by our controlled company, Energtica Serra da Prata S.A. There was no significant variance in these costs.
Manageable costs correspond to operational and maintenance activities at the Cachoeira da Lixa, Colino I and Colino II plants which belong to Energtica Serra da Prata S.A. These activities are conducted by the ENEX, a company with which an agreement was signed in August, 2007. Accumulated manageable costs year-to-date are in line with those for the same period last year.
2.3. Consolidated Administrative Costs

Renova Energia S/A
(Amounts in thousands of R$) Personnel, Management Outsourced Services Rental and leases Business Travel Other administrative expenses Total
Consolidated 3Q11 3Q10 1.8 1.6 1.2 0.3 0.5 5.4 1.6 1.4 0.3 0.5 3.8*
% 13% 14% 300% -33% 0% 42%
*for comparison purposes the amount of R$1.1 million in projects discontinued in 3Q11 was excluded.
Consolidated administrative expenses primarily refer to the Companys corporate structure and encompass administration, financial, accounting, tax, legal and regulatory activities among others at the operating subsidiaries that hold the assets. The administrative expenses increased by 42% year-on-year , primarily due to the growth of the Companys structure. The booking of the leases for the land upon which the wind farms under construction will be installed partially impacted the increase in the amount of rents and leases for the period when compared to 2010. Payroll increased from 63 to 98 compared to the same period last year. Pur structure of outsourced services (consultancy, legal services and statutory publications) are also included in this item. 2.4. Consolidated Financial Result (translation of major headers in table: - Financial Revenue; - Income from financial investments - Other financial revenue - Financial expenses - Debt servicing -Other financial expenses) Financial Result
The net consolidated financial result was a positive R$ 3.6 million, a significant year-on-year increase . This variation is basically due to revenue generated from financial investments following Light Energias R$ 360 million capital injection of August 17, 2011. 2.5. Analysis of the Main Economic and Financial Indicators
Consolidated Balance Sheet

(Amounts in R$ mil.)
Consolidated Assets
Controlling Entity
3Q11 3Q10 3Q11
Consolidated
3Q10
Consolidated Liabilities
Controlling Entity
3Q11 3Q10
Consolidated
3Q11 3Q10
Current Assets Disposable cash Clients Others
362.3 358.8 3.5
162.5 60.3 102.2
501.6 487.2 4.1 10.3
173.2 66.4 3.9 102.9
Current Liabilities Loans and Finance contracts Suppliers Other Long-term Liabilities
157.1 149.8 4.8 2.5 646.1 667.9 (21.8) 803.2
4.0 2.6 1.3 1.9 1.9 291.3 312.8 (21.5) 297.2
376.3 357.4 15.4 3.5 468.3 468.3 643.4 667.9 (24.5) 1,488.0
11.6 6.6 3.3 1.7 126.8 126.8 287.2 312.8 (25.6) 425.6
Long-term Assets Securities and Deposits Related Parties Investments Fixed Assets in use Fixed Assets in course Total Assets
440.9 0.5 38.2 354.8 5.7 41.7 803.2
134,7 0.4 0.2 101.6 2.7 29.8 297.2
986,4 12.0 0.2 0.1 195.4 778.7 1,488.0
252,4 11.7 0.2 0.1 197.4 43.0 425.6
Loans and Finance contracts Related Parties Net Equity Capital Stock Retained Losses Total Liabilities
Note: The amounts for 2010 have been adjusted according to the IFRS. Inserir titulos da tabela 2t2011
2.6. Main Variations in Current Assets in the Period In 3Q11 consolidated current assets increased year-on-year by R$ 328.4 million. This increment reflects primarily: (i) the remaining balance of R$ 150 million of a promissory note issue with Banco Votorantim and (ii) the paying-in of Light Energias R$ 360 million capital injection. We continually invest in the development and expansion of our portfolio of wind farms and SHPs which are registered as fixed assets in progress in line with the requirements in ANEELs Asset Controls Manual for the Electric Sector. 2.7. Trend in the Consolidated Investments in the Development of Wind Farms and SHP Projects
The above table shows the trend in capital expenditures with our projects currently under development in the segments of wind and hydro power. The amounts reported for our wind energy projects in progress are composed of payments to suppliers of services and material and have been included in the assets in progress line. Our portfolio currently consists of 14 basic SHP projects with a total installed capacity of 144.4MW, 18 river inventory studies which together represent a potential of 1,316.6MW generated by SHPs and wind energy generation projects which in aggregate represent 5,524.8MW. 2.8. Finance Agreements and Net Equity The outstanding balance in loans and short- and long-term financing agreements as at September 30 2011 was R$ 825.7 million, representing a R$ 692.3 million increase compared with the previous year. This variation reflects: (i) funding obtained from Banco Votorantim in the form of a a R$ 150 million promissory note issue; (ii) disbursement of BNDES funds for the construction of the nine LER 2009 wind farms and (iii) funding obtained from a Banco Ita BBA S.A. R$ 200 million promissory note issue. Below is a table showing the total amount in loans and financing agreements, as well as maturities for the non-current portion:
Year due:
In up to 12 months 2012 2013 2014 2015 2016 After 2016 R$ mils. 357.4 15.8 27.9 28.3 28.7 29.0 338.6
Total
825.7
Renova reported net shareholders equity of R$ 643.4 million at the end of the quarter, a year-onyear increase of R$ 356.2 million. This variation reflects Light Energias capital injection as well as that of minority shareholders who elected to accompany the increase in capital. 2.9. Results of Operating Subsidiaries
10
ESPRA has been in operation since 2008, together with the Cachoeira da Lixa, Colino I and Colino II plants. At the close of the third quarter, ESPRA reported net operating revenue of R$ 9.5 million, in line with the third quarter 2010. EBITDA reached R$ 8.1 million, also in line with the same period in2010. EBTIDA margin was 85%.
3. RNEW11 performance on the BM&F Bovespa

The following table shows current information on the Companys units: Average Daily Closing at Market Value Cumulative Increase in Volume Negotiated 01/11/2011 Value since the IPO R$ 236 million R$30.38 R$1,980 million 93%
Below is a graph showing RNEW11s performance and the volume of shares negotiated since the IPO.
The Companys investor relations area endeavors to operate transparently in its relations with the market, keeping its investors current on its thinking and projects under development and in prospect. This is achieved by the use of website tools and maintaining an ongoing relationship with shareholders and potential investors through events held publicly or organized by investment banks . Company information and publications may be accessed through our website (www.renovaenergia.com.br), where major sector news with a potential impact on our business plan is also highlighted.
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A free translations from Portuguese into English of Independent Auditors Report on Individual financial statements in accordance with accounting practices adopted in Brazil and consolidated financial statements prepared in accordance with IFRS and also with accounting practices adopted in Brazil.
REPORT ON THE REVIEW OF QUARTERLY INFORMATION
To The Board of Directors and Shareholders of Renova Energia S.A. So Paulo - SP Introduction We have reviewed the interim, individual and consolidated accounting information of Renova Energia S.A., contained in the Quarterly Information - ITR Form for the quarter ended September 30, 2011, which comprise the balance sheet as of September 30, 2011 and the related statements of income for the 3 and 9-month period then ended, of changes in shareholders' equity and of cash flows for the 9-month period then ended, including the summary of the main accounting policies and other explanatory notes. Management is responsible for the preparation of the individual interim accounting information in accordance with Technical Pronouncement CPC 21 - Interim Statement and of the consolidated interim accounting information in accordance with CPC 21 and with international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of this information in a manner consistent with the standards issued by the Securities Commission, applicable to the preparation of the Quarterly Information - ITR. Our responsibility is to express a conclusion on this interim information based on our review. Scope of the review Our review was carried out in accordance with the Brazilian and international review standards for interim information (NBC TR 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists in asking questions, chiefly to the persons in charge of financial and accounting affairs, and in applying analytical procedures and other review procedures. The scope of a review is significantly lower than that of an audit held in accordance with auditing rules, and as a result we were unable to ascertain whether we became aware of all the significant matters likely to be detected in an audit. Therefore, we do not express an opinion on the information disclosed.
12
Conclusion on the individual interim accounting information Based on our review, we are not aware of any facts that would lead us to believe that the individual interim accounting information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of Quarterly Information - ITR, and presented in a manner consistent with the standards issued by the Securities Commission.
Conclusion on the consolidated interim accounting information Based on our review, we are not aware of any facts that would lead us to believe that the consolidated interim accounting information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of Quarterly Information - ITR, and presented in a manner consistent with the standards issued by the Securities Commission. Other issues Interim information of the added value We also reviewed the individual and consolidated interim information on value added (SVA) for the quarter ended September 30, 2011, whose presentation in the interim information is required according to the standards issued by the CVM - Securities and Exchange Commission, applicable to the preparation of Quarterly Information - ITR and considered supplementary information by the IFRS, which do not require the presentation of the SVA. These statements were subjected to the review procedures previously described and, based on our review, we are not aware of any other event that make us believe that those were not prepared, in all material respects, in accordance with the individual and consolidated financial interim information taken as a whole. So Paulo, October 21, 2011 KPMG Independent Auditors CRC 2SP014428/O-6
Jos Luiz Ribeiro de Carvalho Accountant CRC 1SP141128/O-2
10
ITR Financial Interim Information September 30, 2011- Renova Energia S.A.
(In thousands of Reais, unless otherwise indicated)
Renova Energia S.A.
Balance sheets
September 30, 2011 and December 31, 2010
(In thousands of Reais)
Parent company Assets Current assets Cash and cash equivalents Trade accounts receivable Current tax assets Advances to suppliers Prepayments Pledges and restricted deposits Other receivables Note 09/30/2011 12/31/2010
Consolidated 09/30/2011 12/31/2010
4 5 7 6 9
358.831 606 2.316 140 59 419
7.251 1.118 116.091 174 59 4.852
487.242 4.122 973 7.108 1.680 59 419
18.569 3.918 1.274 121.059 576 59 105
362.371
129.545
501.603
145.560
Non-current assets Related party transactions Loans - subsidiaries Loans - Parent companies Special savings bonds Pledges and restricted deposits Goodwill (-) Provision for goodwill at the time of the take-over Investments Other investments Fixed assets in service Constructions in progress
8 37.957 236 448 119.272 (119.272) 354.751 60 5.725 41.693 440.870 48 164 444 119.272 (119.272) 134.953 60 2.927 33.276 171.872 236 25 11.907 119.272 (119.272) 70 195.368 778.742 986.348 164 25 12.019 119.272 (119.272) 70 196.310 77.390 285.978
10 11 11
803.241
301.417
1.487.951
431.538
11
See the accompanying notes to the financial statements.
Renova Energia S.A.

-
Balance sheets
September 30, 2011 and December 31, 2010
Parent company Liabilities Current liabilities Suppliers Loans and financing Charges on loans Current tax liability Salaries and vacations payable Other accounts payable Note 09/30/2011 12/31/2010
Consolidated 09/30/2011 12/31/2010
12 13 13 14
4.788 148.818 1.016 871 1.610 59
5.989 787 652 59
15.375 353.002 4.433 1.323 1.610 511
8.100 6.336 854 1.263 652 150
157.162
7.487
376.254
17.355
Non-current liabilities Loans and financing Charges on loans Related party transactions Loans - subsidiaries
13 8
1.577 1.577
462.742 5.509 468.251
125.599 125.599
Shareholders' equity Capital (-) Expenses with issue of shares Capital reserves Accumulated loss
15 702.166 (34.241) (21.846) 646.079 326.515 (13.686) (20.476) 292.353 702.166 (34.241) (24.479) 643.446 326.515 (13.686) (24.245) 288.584
803.241
301.417
1.487.951
431.538
12
Renova Energia S.A.
Statements of income
Periods ended September 30, 2011 and 2010
Parent company
Note
From 07/01/2011 to 09/30/2011
From 07/01/2010 to 09/30/2010
From 01/01/2011 to 09/30/2011
From 01/01/2010 to 09/30/2010
Net operating income
16
Cost of services Depreciation and amortization Operating cost Distribution system use charges Gross income Operating expenses Other income Administrative and general expenses Tax expenses Depreciation and amortization Other expenses
17
(4.739) (4.590) (30) (63) (56)
(12.867) (11.730) (875) (262)
(10.966) (10.543) (200) (141) (82)
17
(5.232) (4.733) (424) (75)
Income (loss) before net financial income (expenses), equity in net income and taxes Financial expenses Financial income Net financial income (expenses)
(5.232) (584) 5.625 5.041
(4.739) (131) 1.758 1.627
(12.867) (3.268) 8.020 4.752
(10.966) (460) 2.968 2.508
18
Equity income (loss)
10
3.272
2.581
6.745
7.440
Income (loss) before taxes
3.081
(531)
(1.370)
(1.018)
Current income tax and social contribution
19
Income (loss) for the period Basic earnings per share attributable to Company's per preferred share per common share
3.081
(531)
(1.370)
(1.018)
13
0,02 0,02
(0,00) (0,00)
(0,01) (0,01)
(0,01) (0,01)
Diluted earnings per share attributable to Company's per preferred share
0,02
(0,00)
(0,01)
(0,01)
Statements of income
Consolidated
Note
From 07/01/2011 to 09/30/2011
From 07/01/2010 to 09/30/2010
From 01/01/2011 to 09/30/2011
From 01/01/2010 to 09/30/2010
Net operating income
16
9.490
9.023
27.063
26.464
Cost of services Depreciation and amortization Operating cost Distribution system use charges Gross income Operating expenses Other income Administrative and general expenses Tax expenses Depreciation and amortization Other expenses
17
(2.790) (1.416) (1.100) (274) 6.700
(2.639) (1.449) (913) (277) 6.384 (5.119) (4.885) (30) (65) (139)
(8.075) (4.250) (2.964) (861) 18.988 (15.177) 2 (13.940) (880) (359)
(7.767) (4.265) (2.560) (942) 18.697 (11.999) (11.326) (200) (147) (326)
17
(5.997) (5.428) (426) (143)
Income (loss) before net financial income (expenses), equity in net income and taxes Financial expenses Financial income Net financial income (expenses)
703 (3.184) 6.790 3.606
1.265 (3.052) 2.070 (982)
3.811 (11.888) 9.681 (2.207)
6.698 (9.146) 3.801 (5.345)
18
Equity income (loss)
10
Income (loss) before taxes
4.309
283
1.604
1.353
Current income tax and social contribution
19
(849)
(435)
(1.838)
(1.234)
Income (loss) for the period Basic earnings per share attributable to Company's per preferred share per common share
3.460
(152)
(234)
119
0,02 0,02
(0,00) (0,00)
(0,00) (0,00)
0,00 0,00
Diluted earnings per share attributable to Company's per preferred share per common share
14
0,02 0,02
(0,00) (0,00)
(0,00) (0,00)
0,00 0,00
Statements of changes in shareholders' equity (Parent company - CPC)

Capital
Paid-in
Expenses with issue of shares 46.536 (13.689) (13.689)
Capital reserve 119.272 (119.272) -
Accumulate d loss (20.444) (1.018) (21.462)
Total 145.364 (1.018) 160.707 (13.689) 291.364
Balances at January 1, 2010 Loss for the period Capital increase Expenses with issue of shares Balances at September 30, 2010
279.979 326.515
Capital
Paid-in
Expenses with issue of shares (13.686) (20.555) (34.241)
Capital reserve -
Accumulate d loss (20.476) (1.370) (21.846)
Total 292.353 (1.370) 375.651 (20.555) 646.079
Balances at January 1, 2011 Loss for the period Capital increase Expenses with issue of shares Balances at September 30, 2011
326.515 375.651 702.166
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Statements of changes in shareholders equity - (Consolidated IFRS)

Capital Paid-in Expenses with issue of shares Capital reserve Accumulate d loss
Total
Balances at January 1, 2010
46.536
119.272
(25.743)
140.065
Income for the period Capital increase Expenses with issue of shares Balances at September 30, 2010
279.979 326.515
(13.689) (13.689)
(119.272) -
119 (25.624)
119 160.707 (13.689) 287.202
Capital Paid-in Expenses with issue of shares Capital reserve Accumulate d loss
Total
Balances at January 1, 2011
326.515
(13.686)
(24.245)
288.584
Loss for the period Capital increase Expenses with issue of shares Balances at September 30, 2011
375.651 702.166
(20.555) (34.241)
(234) (24.479)
(234) 375.651 (20.555) 643.446
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Statements of cash flows Indirect method

Parent company 09/30/2011 Cash flows from operating activities Income (loss) for the period Adjustments due to : operational activities: Depreciation and amortization Charges on loan Write-off of intangible assets Interest on debentures Interest on loan Escrow interest Equity income (loss) Changes in assets and liabilities 1 (Increase) in trade accounts receivable 2 (Increase) decrease in recoverable taxes 3 (Increase) decrease in prepaid expenses 4 (Increase) in pledges and restricted deposits 5 (Decrease) increase in suppliers 6 Increase in income and social contribution taxes payable Increase (decrease) in advances 7 (Decrease) increase in other accounts (1.370) (1.018) 09/30/2010 09/30/2011
Consolidated 09/30/2010
(234)
119
875 (740) 3.063 (4) (6.745) (4.921) 512 35 (1.201) 84 (4.770) (10.261) (10.750) (21.011) (16.090)
140 300 3.370 (2) (7.440) (4.650) (612) (254) (4) 1.231 57 (98.898) 297 (102.833) (102.833) (98.183)
5.130 (5) 11.035 (920) 15.006 (204) 301 (1.104) 7.276 132 (769) 20.638 (72) (19.575) 991 (14.015)
4.412 (2) 3.370 8.872 (283) 16.488 (15) (739) (289) (4) 1.360 43 (98.686) (1.472) (83.314) (14.031) (97.345) (113.833)
Payment of income and social contribution taxes Payment of interest on loans Net cash generated (consumed) in operational activities Cash flows from operating activities Cash flows from investment activities Increase (decrease) in investment Acquisition of property, plant and equipment in service Acquisition of property, plant and equipment in progress
(71.588) (926) (18.660)
(1.595) (159) (20.511)
(1.439) (568.359)
(255) (20.726)
Net cash generated (consumed) in financing activities Cash flows from financing activities Issue of shares Expenses with issue of shares Increase (decrease) in restricted deposits Increase in loans/financings Borrowings Payments of loans Increase (decrease) in loans Loan with related parties - Receipt Loan with related parties - Payment Loan with related parties Net increase (decrease) in cash and cash equivalents Statement of increase (decrease) in cash and cash equivalents At the beginning of the year At the end of the year
(91.174)
(22.265)
(569.798)
(20.981)
375.503 (20.555) 147.636 (38.819) 17.929 (11.667) (45.081) 463.765
160.707 (13.689) (245) (2.586) 6.798 (9.384) 144.187
375.503 (20.555) 1.031 700.077 (18.509) (67) (67) 1.037.480
160.707 (13.689) 1.625 (5.257) (120) (120) 143.266
351.580 7.251 358.831
19.089 41.238 60.327
468.673 18.569 487.242
24.940 41.475 66.415
351.580
19.089
468.673
24.940
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Statements of cash fows Indirect method

Periods ended June 30, 2011 and 2010
Parent company 06/30/2011 Cash flows from operating activities Income (loss) for the period Adjustments due to: operational activities: Depreciation and amortization Charges on loan Write-off of intangible assets Interest on loan Escrow interest Equity income (loss) Changes in assets and liabilities (Increase) decrease in trade accounts receivable (Increase) decrease in recoverable taxes (Increase) decrease in prepaid expenses (Increase) in pledges and restricted deposits (Decrease) increase in suppliers (Decrease) increase in taxes and contributions payable (Increase) decrease in advances 7 (Decrease) increase in other accounts (4.451) (487) 06/30/2010
Consolidated 06/30/2011 06/30/2010
(3.694)
271
450 (159) 2.494 (2) (3.473) (5.141) 424 (4) (557) (15) (171) (5.464) (5.303) (10.767) (5.626)
78 225 2.179 (4.859) (2.864) (209) (19) 1.104 7 (9.800) 196 (11.585) (11.585) (8.721)
3.287 (2) 8.205 (581) 7.215 (112) 422 (1.143) 446 258 (628) 6.458 50 (11.868) (5.360) (12.575)
2.896 2.179 5.941 11.287 24 (456) 231 1.026 (177) (9.743) (1.524) 668 161 (4.706) (3.877) (15.164)
Payment of income and social contribution taxes Payment of interest on loans Net cash generated (consumed) in operational activities Cash flows from operating activities Cash flows from investment activities Increase (decrease) in investment Acquisition of property, plant and equipment in service Acquisition of property, plant and equipment in progress
(71.588) (680) (10.463)
(1.539) (2.791) (10.072)
(939) (333.924)
(3.006) (10.072)
Ne t cash generate d (consumed) in financing activities Cash flows from financing activitie s Paid-up capital (Increase) restricted deposits Increase in loans/financings Payments of loans Incre ase (decre ase) in loans Loan with related parties - Receipt Loan with related parties - Payment Loan with related parties Net increase (de crease) in cash and cash e quivalents Statement of increase (decrease ) in cash and cash equivalents At the beginning of the year At the end of the year
(82.731)
(14.402)
(334.863)
(13.078)
81 147.636 (38.501) 17.929 (11.667) (44.763) 109.216
6.679 6.779 (100) 6.679
81 875 419.330 (17.329) 88 88 403.045
1.858 (2.072) (11) (11) (225)
15.718 7.251 22.969
(19.308) 41.238 21.930
62.822 18.569 81.391
(17.180) 41.475 24.295
15.718
(19.308)
62.822
(17.180)
18
Statements of added value

(In Brazilian reais)
Parent company 09/30/2011 Revenues Sales of goods, products and services Non-operating income Inputs acquired by third parties (include ICMS and IPI) Cost of goods sold and services rendered Materials, energy, outsourced services and other operating expenses Gross added value Depreciation, amortization and depletion Net added value generated by the Company Added value received as transfer Equity income (loss) Financial income 09/30/2010
Consolidated 09/30/2011 09/30/2010
27.063 -
26.464 -
(6.596) (6.596) (875) (7.471)
(7.255) (7.255) (141) (7.396)
(3.825) (7.985) 15.253 (5.130) 10.123
(3.501) (7.884) 15.079 (4.412) 10.667
6.745 8.020 7.294
7.440 2.968 3.012 3.012
9.681 19.804 19.804
3.801 14.468 14.468
Total added value payable Distribution of added value Employees Salaries and payroll charges Management fees Taxes Federal State Municipal Third-party capital remuneration Interest Rents Others Income (loss) for the period
7.294
3.688 802
2.393 549
3.688 802 `
2.393 549
76 -
130 -
2.200 -
1.449 -
3.063 905 130 (1.370) 7.294
628 330 (1.018) 3.012
11.035 1.822 491 (234) 19.804
8.873 1.027 58 119 14.468
19
Notes to the financial statements

3-month period ended September 30, 2011 and 2010
(In thousands of Brazilian Reais, unless otherwise indicated).
1.
Operations
Renova Energia S.A. (Renova or "Company" or Parent Company), with main offices in the city of So Paulo, State of So Paulo, a publicly-held company, was set up on December 6, 2006. The business purpose of the Company is the generation and trade of electric power in all its forms, production of fuels from natural and renewable sources, rendering of logistic support services to environmental consulting firms or companies and holdings in the capital of other companies. Direct and indirect ownership interests are as follows:
% Interest 09/30/2011 Company - PCH Enerbras Centrais Eltricas S.A. (Holding) Energtica Serra da Prata S.A. Consolidation Full Full at Enerbras Full Direct 100 99,99 100 100 Indirect 12/31/2010 Direct Indirect 100 99,99
(*) (**)
Renova PCH Ltda (Holding)
20
% Interest 09/30/2011 Company - Generating wind energy Consolidation

(**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**)
12/31/2010 Direct Indirect 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Direct 99
Indirect 100 100 99,99 99,99 99,99 99,99 99,99 100 99,99 99,99 99,99 99,99 99,99 99,99 99,99 99,99 99,99
Nova Renova Ltda (Holding) Renova Elica Participaes S.A. (Holding)

Bahia Elica Participaes S.A. (Holding)
Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais Centrais
Elicas Elicas Elicas Elicas Elicas
Candiba S.A. Ilhus S.A. Igapor S.A. Licnio de Almeida S.A. Pinda S.A.
Salvador Elica Participaes S.A. (Holding)
Elicas Alvorada S.A. Elicas Guanambi S.A. Elicas Guirap S.A. Elicas Rio Verde S.A. Elicas Serra do Salto S.A. Elicas Nossa Senhora Conceio S.A. Elicas Paje do Vento S.A. Elicas Planaltina S.A. Elicas Porto Seguro S.A. Elicas Ametista Ltda Elicas dos Araas Ltda Elicas Caetit Ltda Elicas Espigo Ltda Elicas Piles Ltda Elicas So Salvador Ltda Elicas Ventos do Nordeste Ltda Elicas da Prata Ltda Eltricas Tanque Ltda Elicas Serra do Espinhao Ltda Elicas Serama Ltda Eltricas Pelourinho Ltda Eltricas Morro Ltda Eltricas Maron Ltda Eltricas Itaparica Ltda Eltricas Dourados Ltda Eltricas Botuquara Ltda Eltricas Borgo Ltda
Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full Full
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
(*) Authorization from ANEEL for a 30-year period (**) Companies in pre-operating phase;
Enerbras Centrais Eltricas S.A. ("Enerbras"), established on February 9, 2001 as a limited liability company and converted on May 10, 2006 into a private corporation has the exclusive purpose of investing in the capital of Energtica Serra da Prata S.A. ("Espra"), a corporation headquartered in the city of Salvador, Bahia State.
21
The indirect subsidiary Espra was initially established as a consortium on October 30, 2003 and converted into a private corporation on September 17, 2004. The sole business purpose of Espra is to generate and sell the electric power of Serra da Prata Hydroelectric Complex by means of its small hydroelectric power plants (PCHs): (i) Cachoeira da Lixa, with an installed capacity of 14.8MW; (ii) Colino 2, with an installed capacity of 16.0MW; and (iii) Colino 1 with an installed capacity of 11.0MW, whose operating activities started in May, July and September 2008, respectively. On June 30, 2004, the electric power generated by Serra da Prata Hydroelectric Complex was subject to a purchase and sales agreement entered into with ELETROBRS - Centrais Eltricas Brasileiras S.A., under the Incentive Program for Alternative Electric Power Sources (PROINFA). Through these electric power purchase and sales agreements, Espra will sell its entire electric power production which can be negotiated in the long term for a period of twenty (20) years. The authorization period of Espra is 30 years and can be extended for another 30 years. On December 14, 2009, the Company participated in Auction 03/2009-ANEEL, for the procurement of Reserve Energy generated exclusively by wind power, pursuant to Ordinances 147/2009 and 211/2009 of the Ministry of Mines and Energy (MME), and committed to sell average 127MW arising from 14 wind farms located in Bahia State. Such farms are already under implementation and shall commence their business operations by July 2012. On October 26, 2010, wind power plants Guanambi, Porto Seguro, Rio Verde, Alvorada, Guirap, Ilhus, Candiba, Serra do Salto, Igapor and on December 06, 2010, wind power plants SPES, Paje do Vento, Pinda, Planaltina, Licnio de Almeida and Nossa Senhora Conceio, respectively, entered into an energy purchase and sale agreement with the Power Commercialization Chamber (CCEE) for a 20-year supply term. On August 26, 2010, the Company participated in Auction 005/10-ANEEL, for the procurement of Reserve Energy generated exclusively by wind power, pursuant to Ordinances of the Ministry of Mines and Energy (MME) 555/2010, 645/2010, and 483/2010 and those that may be changed, and is committed to sell average 78MW of installed capacity arising from six wind farms located in Bahia State. Such farms shall commence their business operations by September 2013. On August 17, 2011, the Company participated in Auction 002/2011-ANEEL, for the procurement of New Energy (A-3), pursuant to Ordinances of the Ministry of Mines and Energy (MME) 021/2008; 175/2009, n113/2011, and those that may be changed, and committed to sell average 103.6MW of installed capacity arising from nine wind farms located in the state of Bahia. Such farms shall commence their business operations by March 2014.
Corporate Reorganization
On March 14, 2011, the Company authorized the capital increase of its subsidiary Nova Renova Energia S.A., a publicly-held company with head office in the City of Salvador, State of Bahia, at Avenue Paulo VI, n 1498, Bairro Pituba, CEP 41810-001, enrolled with CNPJ/MF under No. 12.041.313/0001-77 ("Nova Renova"), from the current R$100.00 to R$42,609, equivalent to an increase of R$42,609 at book values of investments through the transfer of the total registered common shares, without par value, of its subsidiaries CE Alvorada, CE Candiba, CE Guanambi, CE Guirap, CE Igapor, CE Ilhus, CE Licnio de Almeida, CE Nossa Senhora Conceio, CE Paje do Vento, CE Pinda, CE Planaltina, CE Porto Seguro, CE Rio Verde and CE Serra do Salto, under the
22
terms of the Appraisal Reports, through the issuance of 42,608,946 (forty-two million, six hundred and eight thousand and nine hundred and forty-six) new registered common shares, with no par value of Nova Renova. This change was necessary due to the financing model and strategy adopted by the Company for its eolic parks in connection with the Reserve Energy Auction - 2009 (LER). Accordingly, Nova Renova now holds the direct control of the aforementioned companies and will hold indirect control over these companies. On March 15, 2011, the subsidiary Nova Renova Energia S.A as identified above authorized the capital increase of its subsidiary Salvador Elica Participaes S.A. from the current R$ 100.00 to R$ 24,332, equivalent to an increase of R$24,332 through the transfer of its shares held by its parent company Nova Renova S.A in the companies CE Alvorada, CE Guanambi, CE Guirap, CE Nossa Senhora Conceio, CE Paje do Vento, CE Planaltina, CE Porto Seguro, CE Rio Verde and CE Serra do Salto, through the issuance of 24,331,687 (twentyfour million, three hundred thirty-one thousand, six hundred eighty-seven) new common shares without par value of the Company. On March 15, 2011, the subsidiary Nova Renova Energia S.A., as identified above authorized the capital increase of its subsidiary Salvador Elica Participaes S.A. from the current R$ 100.00 to R$ 18,277, equivalent to an increase of R$18,277 through the transfer of its shares held by its parent company Nova Renova S.A in the companies CE Candiba, CE Igapor, CE Ilhus, CE Licnio de Almeida, and CE Pinda, through the issuance of 18,277,259 (eighteen million, two hundred seventy-seven thousand, two hundred fifty-nine) new common shares without par value of the Company.
23
Before and after organization chart: Before
24
Current
Shared control
On July 8, 2011, RR Participaes S.A. (RR), in the capacity of controlling shareholder of Renova Energia S.A. Renova, and Light S.A., in the capacity of new investor, and Renova, in the capacity of investee, entered into an Investment Agreement with Renova, whereby Light Energia S.A. Light Energia entered in Renova's capital stock by subscribing new common shares to be issued by the latter, corresponding to a capital increase at Renova in the amount of R$360,000 (three hundred and sixty million Brazilian Reais), as per the following terms: The Investment was previously authorized by the National Agency of Electrical Energy ANEEL, and should be also authorized by the lenders of Renova and its subsidiaries. Once all the suspensive conditions established in the Investment Agreement are met, as described above, the capital increase of Renova was carried out on August 19, 2011.
25
By means of such Investment on August 19, 2011, Light Energia became the holder of 35.1% of common shares of Renova and 25.8% of its total capital. (As detailed in note 15 - Shareholders' equity).
2.
Accounting practices
2.1 Basis of presentation

This quarterly information includes: The interim consolidated accounting information were prepared according to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and also in accordance with accounting practices adopted in Brazil in conformity with the pronouncements issued by the Accounting Pronouncements Committee (CPCs), both applied consistent with the last year ended. The individual financial interim information of the Parent company were prepared according to the Accounting Pronouncements Committee statements (CPCs), applied consistent with the last year ended. The individual and consolidated comprehensive statements of income are not being submitted, as there are no amounts to be presented on this concept; in other words, net income for the period is equal to the total comprehensive net income. The individual interim accounting information of Parent Company was prepared in accordance with the CPCs. These practices differ from the IFRS applicable to separate financial interim information in the valuation of investments of subsidiaries under the equity method in CPCs, as, for IFRS purposes, they would be valued at cost or fair value. Pursuant to CPC 43 R1, the shareholders' equity and net income presented in the individual financial interim information, on September 30, 2011 and 2010, differ from the IFRS only in view of the following: (i) adoption of the equity method of accounting in the evaluation of investments in subsidiaries and (ii) existence of balance of deferred assets not yet amortized, also in the individual quarterly financial information. The reconciliation of shareholders' equity and net income for the periods ended September 30, 2011 and 2010 is presented in the note no. 3. The financial interim information were prepared using historical cost as the value base, except for the valuation of certain non-current assets such as financial instruments, which are measured at fair value. The Company's management authorized the conclusion and preparation of the financial interim information on October 21, 2011, which are expressed in thousands of Brazilian Reais, rounded to the nearest value, except otherwise indicated.
2.2 - Description of significant accounting policies

The accounting practices have also been consistently applied by the Groups companies, and are also consistent with the adopted in the financial statements for the year ended December 31, 2010, published on March 18, 2011.
26
a. Consolidation basis The accounting criteria adopted in their calculation were uniformly applied among the various companies of the Group. Description of the main consolidation procedures: Elimination of intercompany asset and liability account balances; Elimination of investments of parent company in the shareholders' equity of direct and indirect subsidiaries; Elimination of intercompany income and expense balances and unearned income arising from intercompany transactions. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
b. Foreign currency
Transactions in foreign currency are translated into the respective functional currency of the Company and its subsidiaries at the exchange rates on the dates of the transactions. Monetary assets and liabilities denominated and calculated in foreign currencies on the date of presentation are reconverted into the functional currency at the exchange rate determined on that date. Exchange gain or loss in monetary items is the difference between the amortized cost of the functional currency at the beginning of the period, adjusted by interest and effective payments during the period, and the amortized cost in foreign currency at the exchange rate at the end of the presentation period.
c. Functional currency and presentation currency

These individual and consolidated financial interim information are presented in Brazilian Real, functional currency of the Company. All financial information presented in Brazilian Reais has been rounded to the nearest value, except otherwise indicated.
d. Use of estimates and judgments

The preparation of individual and consolidated interim accounting information according to IFRS and CPCs standards requires management to make judgments, estimates and assumptions that affect the application of accounting principles and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Currently, the Company recognizes provision for contingencies for administrative lawsuits that are reviewed at least on a quarterly basis.
27
e. Cash and cash equivalents Cash and cash equivalents cover the cash, bank deposits, other short-term marketable securities, which are promptly convertible into a known amount of cash, with low variation risk, at market value, and are stated at cost plus interest earned through the balance sheet date. f. Trade accounts receivable Refers to a sale of energy supply by the subsidiary ESPRA, in accordance with an agreement with the Program for Incentive to Alternative Energy Sources (PROINFA). g. Investments Investments in subsidiaries and associated companies were valued under the equity method. h. Property, plant and equipment Recognition and measurement Property, plant and equipment items are stated at historical acquisition or construction cost, net of accumulated depreciation and accumulated impairment losses, when required. The cost includes expenditures that are directly attributable to the acquisition of assets. The cost of the assets built by the entity includes the cost of materials and direct labor, any other costs to bring assets to the site and the necessary conditions for them to operate as intended by management, disassembly costs and restoration of the location where the assets are located, when applicable, and the costs and interest of loans and financing from third parties capitalized during the construction stage, less financial revenue from third party funds that have not been invested, when applicable. Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is recognized in the income statement using the straight-line method over the estimated useful life of each part of an item of property, plant and equipment, since this is the method that best reflects the consumption pattern of the future economic benefits embodied in the asset. Our depreciation rates conform to ANEEL resolutions n 02/1997, n 44/1999. The useful estimated lives for the current and comparative periods are shown in the Note 11. The depreciation methods and residual values are reviewed at every year closing and any adjustments are recognized as changes in accounting estimates, and useful lives are those established by ANEEL.
28
i. Decrease in of the recoverable value of assets ("impairment") The carrying amounts of the Company's financial assets are reviewed at each reporting date for indication of impairment. If such indication exists, the asset's recoverable amount is determined. For goodwill and intangible assets with an undefined useful life, the recoverable value is estimated on an annual basis. For the period ended September 30, 2011, there was no indication, whether by internal or external information sources, that any asset had suffered a devaluation. Therefore, the assets' recorded net book value is recoverable. j. Environmental Licenses Preliminary environmental licenses and installation permits, obtained in the enterprise planning and installation stage, consecutively, are unitized and recognized as cost of the small hydroelectric power plants and wind farms. k. Loans and financing Loans and financing are stated at incurred net transaction costs and are subsequently measured at amortized cost under the effective rate method. l. Employee benefits Obligations for short-term employee benefits are measured on a non-discounted basis and incurred as expenses as the related service is rendered. m. Provisions A provision is set up if there is a legal or constructive obligation as a result of a past event, which can be reliably estimated, and it is probable that an outflow of funds will be required to settle the obligation. n. Capital Common and preferred shares are classified as shareholders' equity. Preferred stock has restricted voting rights and takes priority in the settlement of their share of capital. Mandatory minimum dividends are established by the by-laws and when reserved in the end of the year, they are recognized as liabilities. Share issuance costs are recognized as deductions from shareholders' equity.
29
o. Income (loss) Income and expenses are recognized on the accruals basis. The revenue from electric power sales is recognized in the income statements upon measurement and supply. Income is not recognized if there are significant uncertainties as to its realization. Financial revenues comprise income from interest on cash investments and loans with related parties. Interest income is recognized in income under the effective interest method. Financial expenses include basically loan interest expenses and financing. Borrowing costs which are not directly attributable to the acquisition, construction, or production of a qualifying asset are recognized for in profit or loss using the effective interest rate method. p. Income and social contribution taxes
The income and social contribution taxes of quarter were calculated based on the rates of 15% plus a surcharge of 10% on taxable income in excess of R$ 240 for income tax and 9% on taxable income for social contribution on net income, and take into account tax loss carryforward and negative basis of social contribution, limited to 30% of net profit. The income tax and social contribution expense comprises current income tax. Current taxes are recognized in income unless they are related to the business combination, or items directly recognized in Shareholders' equity or in Other comprehensive income. Current taxes are the taxes payable or receivable on the taxable income or loss for the year, at tax rates enacted or substantively enacted at the reporting date of the financial interim information, and any adjustments to taxes payable in relation to prior years. q. Income per share The basic earnings per share are calculated based on the result for the financial year attributable to the Company's controlling shareholders and the weighted average of outstanding common and preferred shares in the respective period. The diluted earnings per share are calculated based on the mentioned average of outstanding shares, adjusted by instruments that can potentially be converted into shares, with a dilution effect, in the periods presented.
r. Financial instruments Financial instruments are any transactions originating a financial asset or liability or a financial instrument of another company. These financial instruments are initially recognized at fair value plus or minus directly attributable transaction costs. After the initial recognition, they are measured as described below: Financial instruments securities held to maturity
30
If the Company has the intention and capacity to hold its debt instruments to maturity, these are classified as held to maturity. Investments held to maturity are measured by the amortized cost using the effective interest rate method, deducting any reductions in their recoverable value. Financial assets recorded at fair value through profit or loss Financial assets recorded at fair value through profit or loss are measured at fair value and changes in the fair value of such assets are recognized in the income for the period. An instrument is classified by fair value through profit or loss if it is held for trading, that is, stated as such when initially recognized. Financial instruments are recorded at fair value through profit or loss if the Company manages these investments and makes decisions on investment and redemption based on fair value according the strategy of investment and risk management documented by the Company. After the initial recognition, the attributable transaction costs are recognized in income (loss) when incurred. Loans and receivables Loans and receivables are measured at amortized cost using the effective interest rate method, reduced by any reductions in the recoverable value. s. Statements of added value The Company prepared individual and consolidated statements of added value in accordance with the rules of technical pronouncement CPC 09 - Statement of Added Value, which are presented as an integral part of the financial interim information under BRGAAP applicable to publicly-held companies, whereas under IFRS they represent additional financial information. t. New standards and interpretations not yet adopted
Several IFRS standards, standard amendments, and interpretations issued by IASB have not yet come into effect for the quarter ended September 30, 2011, as follows: Limited exemption from Comparative IFRS 7 Disclosures for First-time Adopters; Improvements to IFRS 2010; IFRS 9 Financial Instruments; Prepayment of a minimum fund requirement (Amendment to IFRIC 14); Amendments to IAS 32 Classification of rights issues; IFRS 10 Consolidated Financial Statements Project Summary and Feedback Statement; IFRS 13 Fair Value Measurement. The CPC (Accounting Pronouncements Committee) has not yet issued pronouncements equivalent to the aforementioned IFRS, although that is expected to be done before the date when they are required to come into effect. The advanced adoption of IFRS pronouncements is conditioned to the prior approval by a regulatory act by the Brazilian Securities Commission ("CVM").
31
Company and its subsidiaries under joint ownership did not estimate the extent of the impact of these new rules in their financial interim information. u. Segment information
The Company and its subsidiaries did not prepare their financial interim information by segment, as provided for in CPC 22, because their operation does not have different segments and their activity is solely the generation of electricity through alternative sources.
3. Reconciliation of the consolidated financial statements (IFRS) and the parent company's financial statements (CPC)
The reconciliation of the shareholders' equity on September 30, 2011 and December 31, 2010 and the results for the years ended September 30, 2011 and 2010, is as follows:
Share holde rs' e quity 09/30/2011 12/31/2010 Pare nt company - CPC Write-off of deferred assets and reversals of the respective amortization of income Consolidate d (IFRS) 646.079 292.353 Ne t income for the ye ar 09/30/2011 09/30/2010 (1.370) (1.018)
(2.633) 643.446
(3.769) 288.584
1.136 (234)
1.137 119
Description of the differences between accounting practices and respective adjustments: The main difference between the consolidated financial statement (IFRS) and the parent company's financial statement (CPC) is described below: Deferred assets: For purposes of the consolidated financial interim information (IFRS), the Company's management recorded against retained earnings on the transition date of January 1, 2009 the balance formerly recorded as deferred assets based on IAS 38, whereas it was kept in the individual position of the Company, since for purposes of this financial interim information, management opted to keep this balance up to its total realization through amortization.
32
4. Cash and cash equivalents

Parent company 09/30/2011 12/31/2010 Cash Banks checking account Interest earnings bank deposits Total 71 10.118 348.642 358.831 1 126 7.124 7.251 Consolidated 09/30/2011 12/31/2010 75 37.445 449.722 487.242 5 2.093 16.471 18.569
Highly liquid short-term interest earning bank deposits are promptly convertible into a known sum of cash and subject to an insignificant risk of change of value. These financial investments refer substantially to fixed income funds of the Interbank Deposit Certificate (CDI), remunerated the ratea ranging from 98.5% to 102.75% from the CDI.
5. Trade accounts receivable (Consolidated)

Trade accounts receivable Consolidated 09/30/2011 12/31/2010 4.122 3.918
Corresponds to amounts receivable from the sale of energy generated by the indirect subsidiary Espra, relating to the PCHs Cachoeira da Lixa, Colino 1 and Colino 2. The balance as of September 30, 2011 comprises current amounts exclusively related to our agreement with Eletrobrs, for which no losses are expected upon realization.
6. Receivables from suppliers

Parent company 09/30/2011 12/31/2010 Advances to suppliers Advances to imports Total 2.316 116.091 Consolidated 09/30/2011 12/31/2010 7.108 120.533
2.316
116.091
7.108
526
121.059
On May 27, 2011, the indirect subsidiaries (SPE's) that will build the 14 wind farms regarding LER 2009 projects entered into a supply and O&M agreement with GE. On the same date, Renova Energia S.A. increased the capital of Nova Renova S.A., which also increased the capital in the other companies using credits in the amount of R$ 117,000, which were used to settle suppliers' invoices issued on May 27, 2011.
33
7. Current tax assets

Current
Parent company 09/30/2011 12/31/2010 IRRF on financial investment PIS recoverable COFINS recoverable Social contribution tax recoverable IRRF recoverable ISS recoverable Negative balance of Corporate Income tax Total 597 9 606 1.064 54 1.118 Consolidated 09/30/2011 12/31/2010 607 20 94 43 9 200 973 1.064 20 94 41 1 54 1.274
The negative balance of IRPJ, in the amount of R$54, originating from IRRF on a money market investment of the year 2010, was used to offset own debts relating to the taxes and contributions administrated by the Brazilian Internal Revenue Service.
8. Related party transactions

Parent company Assets 09/30/2011 12/31/2010 Term Beginning End 05/27/2011 01/02/2008 05/27/2011 05/27/2011 05/27/2011 05/27/2011 05/27/2011 05/27/2011 05/27/2011 05/27/2009 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 07/01/2011 05/27/2012 28/12/2013 05/27/2012 05/27/2012 05/27/2012 05/27/2012 05/27/2012 05/27/2012 05/27/2012 12/28/2013 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 03/27/2012 09/30/2011 Liabilities 12/31/2010 Term Beginning End 08/26/2009 12/28/2013 Income (loss) for the period ended 09/30/2011 Consolidated Income (loss) for the period ended 09/30/2011
Espra Salvador Elica Enerbras CE Rio Verde CE Guirapa CE N S Conceio CE Planaltina CE Guanambi CE Pajeu do Vento CE Alvorada RR Bahia Elica Renova Elica Nova Renova Energia CE Espigo CE Caetit CE Ametista CE Piles CE So Salvador Renova PCH CE Serra do Espinhao CE Pelourinho CE Dourados CE Botuquara CE Borgo CE Maron CE Itaparica Total
15.382 3.912 3.476 3.096 2.974 2.759 2.515 2.508 1.218 236 24 7 7 7 7 7 7 7 6 6 6 6 5 5 5 5 38.193
3 164 3 3 3 4 4 4 4 4 2 2 2 2 2 2 2 2 212
1.577 1.577
(94) 267 129 81 72 70 64 58 58 28 7 740
7 7
34
The main balances of assets and liabilities on September 30, 2011, as well as the transactions that influenced income for the year, relating to operations with related parties, result from transactions of the Company with its parent company, subsidiaries and other related parties.
a. Accounts receivable/payable
Accounts receivable - Correspond to a loan from parent RR Participaes S.A. and other associates and subsidiaries, as described in the chart. These loans were raised to supply these companies' cash requirements. Accounts payable - loan from associate Espra was raised to cover cash requirements. For both balances (receivable and payable), the amount due is subject to adjustment by the Long-term Interest Rate (TJLP) plus interest of 0.5% per year, which will not be capitalized. The request for authorization to prepare loan contracts was registered with ANEEL in 2008.
b. Management remuneration
The remuneration of Management's key personnel in the period ended September 30, 2011 and 2010, as required by CVM Resolution 560, of December 11, 2008, reached the amount of R$ 1,410 and R$ 2,260, respectively, amounts solely comprised of short-term benefits. Compensation of the Board of Directors and Statutory Board paid by the Company in the accumulated period (in Brazilian Reais).
Parent company 2011 Number of members Annual fixed remuneration (in R$) Salary or director compensation Direct and indirect benefits Remuneration for participation in committees Variable compensation (in R$) Bonus Post-employment benefits Total amount of compensation per body Board of Directors 2 88.000 88.000 n/a n/a n/a n/a n/a 88.000 Board of Executive Officers 7 1.321.866 1.321.866 n/a n/a n/a n/a n/a 1.321.866 Total 9 1.409.866 1.409.866 n/a n/a n/a n/a n/a 1.409.866
Average monthly compensation of the Board of Directors and Statutory Board paid in Brazilian Reais. .
Parent company 2011 Number of members Amount of the highest individual pay (in R$) Amount of the lowest individual pay (in R$) Average amount of individual pay (in R$) Board of Directors 2 16.000 16.000 Board of Executive Officers 7 102.083 38.700 72.362
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9. Pledges and restricted deposits

Parent company 09/30/2011 12/31/2010 Consolidated 09/30/2011 12/31/2010
Current Non-current
59 448 507
59 444 503
59 11.907 11.966
59 12.019 12.078
The balance of R$11,907 on September 30, 2011 presented in non-current assets refers to the money market investment in a fixed income fund denominated "reserve account liquidity fund" at Banco do Nordeste do Brasil S.A., the objective of which is to guarantee the financing obtained for the construction of the PCHs of the subsidiary Espra. This investment cannot be used until the final term of the financing in 2026. The yield of this investment reaches 97% of the variation of the Certificate of Interbank Deposit (CDI), the balances of which at the end of the periods are already stated at market value. The remaining balance refers to deposits related to guarantees of inventory studies, whereas these deposits are made in favor of ANEEL - Agncia Nacional de Energia Eltrica (National Agency of Electrical Energy).
10. Investments
The Company recorded equity in the income of its subsidiary companies in the amount of R$6,745 on September 30, 2011 and R$9,971 on December 31, 2010.
Total assets Total Shareholders' Income ( loss) equity liabilities Equity in net income of subsidiaries
Interest % December 31, 2010 Enerbras Centrais Eltricas S.A. Wind Farms - SPE's 100% 100%
224.499 50.716 275.215
133.626 6.636 140.262
90.873 44.080 134.953
10.097 (126) 9.971
10.097 (126) 9.971
September 31, 2011 Enerbras Centrais Eltricas S.A. Wind Farms - SPE's 100% 100% 217.639 862.413 1.080.052 118.518 610.246 728.764 99.121 252.167 351.288 8.248 (1.503) 6.745 8.248 (1.503) 6.745
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Changes in the investment

Balances 12/31/2010 Movement of investments Enerbras Centrais Eltricas S.A. Wind Farms - SPE's Total 90.873 44.080 134.953 209.590 209.590 3.463 3.463 8.248 (1.503) 6.745 99.121 255.630 354.751 Capital increase Adv. for future capital increase Equity in net income Balances 09/30/2011
The shareholders' equity of Enerbras as of September 30, 2011 is R$99,121. The net income for the period is R$8,248 and capital is R$86,636, represented by 5,170,101 shares, 4,337,536 thousand of which are common shares, 832,562 preferred class B shares and 3 preferred class A shares. In addition to Enerbras, the Company has holdings in another 23 Companies, with 20 in direct interest and 3 subholdings with indirect interest (see note no. 1).1). These companies are in the pre-operational phase and their business purpose consists of developing studies, designing, implementing, operating and exploring electric power plants using a wind energy source and to hold interests in other companies, as the case. The statement of investments for companies with direct interest is as follows:
Company ENERBRAS Centrais Eltricas S.A. Centrais Elicas ALVORADA S.A. Centrais Elicas CANDIBA S.A. Centrais Elicas GUANAMBI S.A. Centrais Elicas GUIRAP S.A. Centrais Elicas LICNIO DE ALMEIDA S.A. Centrais Elicas PINDA S.A. Centrais Elicas RIO VERDE S.A. Centrais Elicas SERRA DO SALTO S.A. Centrais Elicas IGAPOR S.A. Centrais Elicas ILHUS S.A. Centrais Elicas N. S. CONCEIO S.A. Centrais Elicas PAJE DO VENTO S.A. Centrais Elicas PLANALTINA S.A. Centrais Elicas PORTO SEGURO S.A. Centrais Elicas AMETISTA LTDA Centrais Elicas DOS ARAAS LTDA Centrais Elicas CAETIT LTDA Centrais Elicas ESPIGO LTDA Centrais Elicas PILES LTDA (previous Recncavo) Centrais Elicas SO SALVADOR LTDA Centrais Elicas VENTOS DO NORDESTE LTDA Centrais Elicas DA PRATA LTDA Centrais Eltricas TANQUE LTDA Centrais Eltricas SERRA DO ESPINHAO LTDA Centrais Eltricas SERAMA LTDA Centrais Eltricas PELOURINHO LTDA (previous Palmares) Centrais Eltricas MORRO LTDA Centrais Eltricas MARON LTDA Centrais Eltricas ITAPARICA LTDA Centrais Eltricas DOURADOS LTDA Centrais Eltricas BOTUQUARA LTDA Centrais Eltricas BORGO LTDA RENOVA PCH LTDA (previous Bela Vista) NOVA RENOVA ENERGIA S.A. Total Investment on 12/31/2010 90.873 1.292 2.359 2.566 3.520 4.220 4.087 3.630 2.265 5.054 2.545 3.470 3.178 3.349 1.047 214 214 214 214 214 214 214 134.953 Addition to the investment (1.292) (2.359) (2.566) (3.520) (4.220) (4.087) (3.630) (2.265) (5.054) (2.545) (3.470) (3.178) (3.349) (1.047) 1.885 1.393 1.544 1.644 1.883 1.869 241.954 209.590 Adv. for future capital increase 7 7 7 7 7 7 3.421 3.463 Income (loss) for the period 8.248 (2) (1) (2) (2) (2) (2) (2) (6) (6) (5) (6) (5) (5) (5) (5) (5) (5) (5) (5) (1.427) 6.745 Investment on 09/30/2011 99.121 212 2.105 212 212 212 212 1.612 1.545 1.645 (5) 1.884 (5) 1.871 (5) (5) (5) (5) (5) (5) 243.948 354.751
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The composition of investments made in subholding Nova Renova Energia S.A. that controls Renova Elica, Salvador Elica and Bahia Elica is as follows:
Company
Investment on 12/31/2010 -
Addition to the investment 11.026 8.749 8.526 5.177 4.767 8.422 20.977 29.028 30.640 21.826 29.030 25.810 27.420 10.556 241.954
Adv. for future capital increase 1.082 750 680 556 353 3.421
Income (loss) for the period (31) (4) (21) (58) (81) (79) (47) (53) (85) (80) (144) (192) 17 (50) (112) (176) (183) (48) (1.427)
Investment on 09/30/2011 (31) (4) (21) 12.050 9.418 9.127 5.686 5.067 (85) 8.342 20.833 28.836 30.657 21.776 28.918 25.634 27.237 10.508 243.948
NOVA RENOVA ENERGIA S.A. RENOVA ELICA PARTICIPAES S.A. BAHIA ELICA PARTICIPAES S.A. Centrais Elicas IGAPOR S.A. Centrais Elicas LICINIO DE ALM EIDA S.A. Centrais Elicas PINDAI S.A. Centrais Elicas ILHEUS S.A. Centrais Elicas CANDIBA S.A. SALVADOR ELICA PARITICIPAES S.A. Centrais Elicas ALVORADA S.A. Centrais Elicas GUANAM BI S.A. Centrais Elicas GUIRAPA S.A. Centrais Elicas RIO VERDE S.A. Centrais Elicas SERRA DO SALTO S.A. Centrais Elicas N. S. CONCEIO S.A. Centrais Elicas Paje do Vento S.A. Centrais Elicas Planaltina S.A. Centrais Elicas Porto Seguro S.A. TOTAL
On July 1, 2011, the Company entered into agreements for future capital increase at the amounts presented in the charts above. The Company informs that the agreements are irrevocable and irreversible. Although agreements are valid for 270 days after the date above mentioned, the Company will pay up shares until November 30, 2011, as follows:
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Company Qty. of shares NOVA RENOVA ENERGIA S.A. BAHIA ELICA PARTICIPAES S.A. CENTRAIS ELICAS IGAPOR S.A. CENTRAIS ELICAS LICNIO DE ALM EIDA S.A. CENTRAIS ELICAS PINDA S.A. CENTRAIS ELICAS ILHUS S.A. CENTRAIS ELICAS CANDIBA S.A. CENTRAIS ELICAS DOS ARAAS LTDA CENTRAIS ELICAS VENTOS DO NORDESTE LTDA. CENTRAIS ELICAS DA PRATA LTDA. CENTRAIS ELTRICAS TANQUE LTDA. CENTRAIS ELTRICAS SERAM A LTDA. CENTRAIS ELTRICAS M ORRO LTDA. 3.420.728 3.420.728 1.081.921 750.443 680.078 555.756 352.530 7.000 7.000 7.000 7.000 7.000 7.000
11. Property, plant and equipment

11.1 Parent company
09/30/2011 Annual depreciation rates % Fixed assets in service Generation Measurement towers Administration Machinery and equipment Improvements Furniture and fixtures Software Data processing equipment Vehicles Total fixed assets in service Constructions in progress Generation To pay out Studies and projects Land Machinery and equipment Total constructions in progress Total fixed assets 12/31/2010
Historical Accumulated cost depreciation
Net amount
Historical cost
Accumulated depreciation
Net amount
20%
3.516 3.516 44 1.241 987 776 428 6 3.482 6.998
(814) (814) (4) (106) (153) (65) (131) (459) (1.273)
2.702 2.702 40 1.135 834 711 297 6 3.023 5.725
512 1.236 669 564 337 6 3.324 3.324
(136) (69) (89) (103) (397) (397)
376 1.167 580 564 234 6 2.927 2.927
10% 10% 10% 20% 20% 20%
13.677 25.610 2.406 41.693 48.691
(1.273)
13.677 25.610 2.406 41.693 47.418
5.363 22.159 3.009 2.745 33.276 36.600
(397)
5.363 22.159 3.009 2.745 33.276 36.203
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11.2 Movements record movements of property, plant and equipment (Parent company)
12/31/2010 Fixed assets in service Generation Measurement towers Administration Machinery and equipment Improvements Furniture and fixtures Software Data processing equipment Vehicles Total fixed assets in service Constructions in progress Generation To pay out Studies and projects Land Machinery and equipment Total constructions in progress Total of Property, plant and equipment Additions Capital Subscription SPEs Wind Farms Reclassifications between accounts Depreciation 09/30/2011
232
3.283
(813)
2.702
376 1.167 580 565 233 6 2.927 2.927
21 4 317 212 140 694 926
(490) (48) (538) 2.745
133 (36) (63) (66) (28) (60) (873)
40 1.135 834 711 297 6 3.023 5.725
5.363 22.159 3.009 2.745 33.276 36.203
24.589 3.451 503 28.543 29.469
(17.381) (17.381) (17.381)
1.106 (1.106) (2.745) (2.745) -
(873)
13.677 25.610 2.406 41.693 47.418
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11.3
Consolidated
09/30/2011 Annual depreciation rates % 12/31/2010
Historical Accumulated cost depreciation
Net amount
Historical cost
Accumulated depreciation
Net amount
Fixed assets in service Generation Land Reservoirs, dams and ducts 3% Buildings, civil works and improvements 3% Machinery and equipment 4% Furniture and fixtures 10% Data processing equipment 20% Measurement towers 20% Others 20% Administration Machinery and equipment Improvements Furniture and fixtures Software Data processing equipment Vehicles Total fixed assets in service Constructions in progress Generation To pay out Studies and projects Land Machinery and equipment Buildings, civil works and improvements Furniture and fixtures Measurement towers Aerogenerators Substation equipment Advances to suppliers Total constructions in progress Total fixed assets
595 95.807 45.979 65.005 88 229 3.516 10 211.229 44 1.246 1.026 776 446 6 3.544 214.773
(7.254) (4.880) (5.851) (23) (100) (814) (4) (18.926) (4) (105) (165) (65) (140) (479) (19.405)
595 88.553 41.099 59.154 65 129 2.702 6 192.303 40 1.141 861 711 306 6 3.065 195.368
595 95.797 45.500 64.995 80 228 10 207.205 512 1.236 709 564 355 6 3.382 210.587
(5.560) (3.595) (4.622) (18) (65) (3) (13.863) (136) (69) (99) (110) (414) (14.277)
595 90.237 41.905 60.373 62 163 7 193.342 376 1.167 610 564 245 6 2.968 196.310
10% 10% 10% 20% 20% 20%
82.989 25.610 5.479 16.384 3 3.228 611.359 122 33.568 778.742 993.515
(19.405)
82.989 25.610 5.479 16.384 3 3.228 611.359 122 33.568 778.742 974.110
34.067 22.159 3.009 2.745 15.410 77.390 287.977
(14.277)
34.067 22.159 3.009 2.745 15.410 77.390 273.700
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11.4 Movement of the Property, plant and equipment (Consolidated)

12/31/2010 Fixed assets in service Generation Land Reservoirs, dams and ducts Buildings, civil works and improvements M achinery and equipment Furniture and fixtures Data processing equipment M easurement towers Others Administration M achinery and equipment Improvements Furniture and fixtures Software Data processing equipment Vehicles Total fixed assets in service Constructions in progress Generation To pay out Studies and projects Land M achinery and equipment
Additions
Reclassifications between accounts
Depreciation
09/30/2011
595 90.237 41.905 60.373 62 163 7 193.342 376 1.167 610 564 245 6 2.968 196.310
10 479 9 9 232 739 21 11 316 212 140 700 1.439
3.283 3.283 (490) (48) (538) 2.745
(1.694) (1.285) (1.228) (6) (34) (813) (1) (5.061) 133 (37) (65) (65) (31) (65) (5.126)
595 88.553 41.099 59.154 65 129 2.702 6 192.303 40 1.141 861 711 306 6 3.065 195.368
Buildings, civil works and improvements Furniture and fixtures Measurement towers Aerogenerators Substation equipment
Advances to suppliers Total constructions in progress Total of Property, plant and equipment
34.067 22.159 3.009 2.745 15.410 77.390 273.700
60.864 3.451 2.692 12.348 3 1.940 607.798 122 14.879 704.097 705.536
(11.942) (222) (2.745) 4.036 1.288 3.561 3.279 (2.745) -
(5.126)
82.989 25.610 5.479 16.384 3 3.228 611.359 122 33.568 778.742 974.110
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PP&E in use are divided into two groups: i. Generation - Basically comprised of assets of the Serra da Prata Hydroelectric Complex and the PCHs Cachoeira da Lixa, Colino 1 and Colino 2
ii. Management - Composed of the assets employed in the offices of the Management of Espra and the parent company, and of machinery used for tests in the wind farms. In November 2008, pursuant to ANEEL Normative Resolution no. 190/2005, the unitizing procedure was concluded with regard to the fixed assets commissioned at the Serra da Prata hydroelectric compound. The unitized value is composed of the amount of R$11,886 referring to interest capitalized in the construction period in 2005 and 2006. According to articles 63 and 64 of Decree 41019/1957, the assets and facilities utilized in the generation, transmission, distribution and trade of electric power are tied to these services, and cannot be removed, divested, assigned or mortgaged without the prior and express authorization of the regulatory body. ANEEL, through official letter 459/2001- SFF/ANEEL, authorized the offering of emergent rights, assets and facilities of the concession in guarantee of the performance of the obligations assumed by the Company in the sphere of the direct financing, transfer and issue of debentures (Note 13.1). Depreciation of assets at the Serra da Prata hydroelectric compound was calculated according to the Electricity Accounting and Public Service Manual, according to the Ordinance 815/1994, issued by DNAEE (National Department of Waters and Electric Energy), and ReN ANEEL no. 240/06. Work in progress records expenditures in water projects, composed of basic projects and inventories that already have authorization from ANEEL, projects of wind farms that won the reserve auction of 2009 and 2010, and of new wind farm projects. On December 27, 2010 the Company signed a civil engineering supply agreement with the Queiroz Galvo e Mercurius consortium. From this date to September 30, 2011, advances have already been made in the amount of R$15,410 and, in 2011, an agreement was also entered into with ABB Ltda. for the construction of a substation and supply of equipment in the amount of R$18,158. The amount of R$33,568 is registered in advances to suppliers under property, plant and equipment in progress. The amount of R$6,376 was capitalized under property, plant and equipment as interest on loans raised for the construction of wind farms. For the same nine-month period of 2010, no interest was capitalized.
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12. Suppliers
Parent company Consolidated 09/30/2011 12/31/2010 09/30/2011 12/31/2010 4.788 5.989 15.375 8.100
Suppliers
The Companys suppliers are mainly service providers and suppliers of materials for the projects under development. In the consolidated figures, there are also sums regarding maintenance and operating costs in the subsidiary Espra.
13. Loans and financing (Consolidated)

09/30/2011 Charges Debt cost Local currency Promissory notes (Banco Votorantim) - Renova Energia S.A. BNDES - CEOL Rio Verde S.A. BNDES - CEOL Porto Seguro S.A. BNDES - CEOL Serra do Salto S.A. BNDES - CEOL Planaltina S.A. BNDES - CEOL Paje do Vento S.A. BNDES - CEOL N. S. Conceio S.A. BNDES - CEOL Guirap S.A. BNDES - CEOL Guanambi S.A. BNDES - CEOL Alvorada S.A. Promissory notes (Banco Ita) - CEOL Candiba S.A. Promissory notes (Banco Ita) - CEOL Igapor S.A. Promissory notes (Banco Ita) - CEOL Ilhus S.A. Promissory notes (Banco Ita) - CEOL Licnio de Almeida S.A. Promissory notes (Banco Ita) - CEOL Pinda S.A. IFC - Banco Santander S.A. - Enerbras FNE - Banco do Nordeste do Brasil S.A. - Espra Subtotal loans Funding cost operation TOTAL 100.00% CDI + 3.0% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. TJLP + 1.92% p.a. 100.00% CDI + 1.15% p.a. 100.00% CDI + 1.15% p.a. 100.00% CDI + 1.15% p.a. 100.00% CDI + 1.15% p.a. 100.00% CDI + 1.15% p.a. 100.00% CDI + 2.5% p.a. 9.5% p.a. Current 1.016 307 1.196 376 769 769 4.433 4.433 Non Current 1.134 158 527 675 634 877 733 521 250 5.509 5.509 Current 150.000 18.000 70.000 22.000 45.000 45.000 4.798 354.798 1.796 353.002 Principal Non Current 71.260 10.053 35.142 43.036 40.348 60.780 47.314 33.366 17.613 108.627 467.539 4.797 462.742 Current 825 29 854 854 Charges Non Current Current 1.764 4.572 6.336 6.336 12/31/2010 Principal Non Current 13.353 112.246 125.599 125.599
13.1 Additional information on debt service a. Commercial promissory notes Banco Votorantim On March 18, 2011, the Company issued commercial promissory notes in the amount of R$150,000. These securities fall due in 360 days on March 12, 2012. The remuneration will be at DI rate, plus 3% p.a. and other commissions and charges. The Company is entitled to early redemption of the debt.
In order to ensure the full payment and the compliance with all its contractual obligations, the Company pledged as collateral to the holders of Commercial Notes all its current and future shares, representative of the capital of its subsidiary Enerbras, and their respective rights. The holders of the respective commercial notes may only exercise this right in case the Company fails to comply with the contractual clauses. The proceeds from this operation were used to settle the IFC loan and the remainder was used for investments in the eolic parks in connection with LER 2009.
44
b. BNB and BNDES financing for the construction of the wind farms of LER 2009. On January 3, 2011 the Company obtained the approval of financing for its 14 wind farms contracted at the 2nd Reserve Auction of December 2009 (LER 2009) from the National Bank for Economic and Social Development (BNDES). The consolidated financial volume reaches R$904,600 and represents approximately 77% of the total planned investments of R$1,170,000. The Paje do Vento, Planaltina, Porto Seguro, Nossa Senhora da Conceio, Guirap, Serra do Salto, Guanambi, Alvorada and Rio Verde wind farms obtained approval from the Senior Management of BNDES in a total financed volume of R$588,900.The volume represents approximately 74% of the total investments in these projects. The financing has an interest rate of 1.92% p.a. + TJLP (Long-term Interest Rate), up to two years of interest and principal grace period and 16 years of amortization term. The nine farms total 195.2 MW of installed capacity and 84 MW on average of firm energy contracted. On September 30, 2011, the second release of funds had already been made. The other five wind farms of Renova Energia contracted at LER 2009, received approval from the Senior Management of the National Bank for Economic and Social Development (BNDES). The financed volume is R$297,400, corresponding in full to approximately 70% of the total investments planned in these farms. BNDES - agreement n 10.2.2107.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Rio Verde from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$16,336. Up to this date, R$71,259 of this total amount (R$89,550) have been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period.
BNDES - agreement n 10.2.2106.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Porto Seguro from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$1,470. Up to this date, R$10,053 of this total amount (R$19,252) has been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period. BNDES - agreement n 10.2.2108.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Serra do Salto from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$9,323. Up to this date, R$35,142 of this total amount (R$57,913) have been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee
45
during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period. BNDES - agreement n 10.2.2105.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Planaltina from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$6,422. Up to this date, R$43,036 of this total amount (R$82,125) have been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period. BNDES - agreement n 10.2.2104.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Paje do Vento from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$5,888. Up to this date, R$40,348 of this total amount (R$77,294) have been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period.
BNDES - agreement n 10.2.2103.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Nossa Senhora da Conceio from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$22,012. Up to this date, R$60,780 of the total amount of (R$86,956) has been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. Security of the operation by way of pledge of shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period. BNDES - agreement n 10.2.2102.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Guirap from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$8,546. Up to this date, R$47,314 of this total amount (R$86,956) have been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period. BNDES - agreement n 10.2.2101.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Guanambi from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$5,367. Up to this date, R$33,366 of this total amount (R$62,801) have been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares,
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fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period. BNDES - agreement n 10.2.2100.1 Signed on May 5, 2011, aimed at the deployment of Central Geradora Elica Alvorada from June 2011 to July 2012. The second payment was made on August 11, 2011, in the amount of R$6,989. Up to this date, R$17,612 of this total amount (R$23,829) have been disbursed with BNDES ordinary funds, amortizable in 192 monthly installments, the first one maturing on May 15, 2013 and the last one on April 15, 2029, bearing interest of 1.92% p.a. indexed to the TJLP. The operation is guaranteed by pledge on shares, fiduciary assignment of credit and emerging rights, fiduciary assignment of assets, and bank guarantee during construction and the first year of business operation. The contractual covenant of this operation in a Gross Financial Debt/EBITDA ratio not higher than 1.3, in the grace period. c. Commercial promissory notes Banco
Commercial promissory notes Banco Ita BBA - Candiba
On August 12, 2011, the Company issued commercial promissory notes in the amount of R$18,000. These securities fall due in 180 days on February 08, 2012. The remuneration will be at DI Rate, plus 1.15% p.a. and other commissions and charges. The Company is entitled to early redemption of the debt. In order to ensure the full payment and the compliance with all its contractual obligations, the Company pledged as collateral to the holders of Commercial Notes the surety of Renova Energia S.A., fiduciary assignment of equipment, fiduciary assignment of rights emerging from the concession, fiduciary assignment of companies shares and fiduciary assignment of lease contracts. These guarantees are the same offered to BNDES in the financing contract and will be released upon contract execution. The holders of the respective commercial notes may only exercise this right in case the Company fails to comply with the contractual clauses. Amounts raised in this transaction were used as short-term financing for investments to implement the above-mentioned wind farm.
Commercial promissory notes Banco Ita BBA - Igapor
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Commercial promissory notes Banco Ita BBA - Ilhus
Commercial promissory notes Banco Ita BBA - Licnio de Almeida
Commercial Promissory Notes - Banco Ita BBA - Pinda On August 12, 2011, the Company issued commercial promissory notes in the amount of R$45,000. These securities fall due in 180 days on February 08, 2012. The remuneration will be at DI Rate, plus 1.15% p.a. and other commissions and charges. The Company is entitled to early redemption of the debt. In order to ensure the full payment and the compliance with all its contractual obligations, the Company pledged as collateral to the holders of Commercial Notes the surety of Renova Energia S.A., fiduciary assignment of equipment, fiduciary assignment of rights emerging from the concession, fiduciary assignment of companies shares and fiduciary assignment of lease contracts. These guarantees are the same offered to BNDES in the financing contract and will be released upon contract execution. The holders of the respective commercial notes may only exercise this right in case the Company fails to comply with the contractual clauses. Amounts raised in this transaction were used as short-term financing for investments to implement the above-mentioned wind farm.
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d. Banco Santander S.A. - Loan Agreement in the form of a credit facility, the most recent amendment dated November 7, 2007. The main financing value upon the contracting was equal to R$23,253, at a 2.5% p.a. interest rate plus updating at 100% of the CDI rate, payable every six months on the last days of January and July, with the final portion due on May 24, 2014. On March 18, 2011 the Company fully settled the loan. e. Banco do Nordeste do Brasil S.A.- Loan Agreement in the form of a credit facility, approved through Decree 6367 dated January 30, 2008, with the participation of Enerbras and of its parent companies on June 30, 2006, totaling R$ 120,096, at a 9.5% p.a. interest rate payable quarterly on the 30th day of each month during the period from June 30, 2006 to June 30, 2008, and monthly therefrom on the 30th day of each month. The agreement matures on June 30, 2026. The following were given as security to this loan: Bank letter equal to 50% of the sum loaned. In March 2010, Banco do Nordeste do Brasil S.A released a guarantee in view of the registration of the construction; First-degree mortgage of the property with all the existing facilities at: (i) rural property PCH - Cachoeira da Lixa, located in the municipality of Jucuruu (BA); (ii) rural property PCH Colino 1 - D, E, F, located in the municipality of Vereda (BA); and (iii) Fazenda Entorno PCH - Colino 2, located in the municipality of Vereda (BA); Pledge on shares, entered into pursuant to articles 1,419 and the following of the Brazilian Civil Code (Law 10406/2002) and article 39 of Law 6404/76. As an intervening party, the parent company of Enerbras pledged common shares issued by Espra; Pledge of Rights Arising from the Authorizing Resolutions entered into pursuant to articles 1431 and following of the Brazilian Civil Code (Law 10406/2002) and as permitted in paragraph 1, article 19, Decree 2003 dated September 10, 1996, the subsidiary Espra pledges in favor of BNB: a. The right to receive all and any sums which are or will become actually or potentially payable and outstanding to Espra by the Concession Authority, in accordance with the legal and regulatory norms and applicable to the following Authorizing Resolutions: (i) PCH Cachoeira da Lixa: Authorizing Resolution no. 697 dated December 24, 2003; (ii) PCH Colino 1: Authorization Resolution No. 703, dated December 24, 2003; and (iii) PCH Colino 2: Authorizing Resolution no. 695 dated December 24, 2003, subsequently amended by Resolutions no. 427, 425, and 426, all dated December 24, 2004, and by means of SCG/ANEEL Provisions no. 591 and 588 dated March 20, 2006, and no. 529 dated March 15, 2006, respectively, including but not limited to all the indemnities owing to the license's repeal or extinction; and b. All other rights, tangible or not, potential or otherwise, likely to be pledged pursuant to the applicable legal and regulatory norms and the following Authorizing Resolutions: (i) PCH Cachoeira da Lixa: Authorizing Resolution no. 697 dated December 24, 2003; (ii) PCH Colino 1: Authorization Resolution No. 703, dated December 24, 2003; (iii) PCH Colino 2: Authorizing Resolution 695 dated
49
December 24, 2003, with its amendments mentioned in item 'a' of the Electricity Purchase and Sale Agreements: CT-PROINFA/PCH-MRE no. 032/2004 (PCH Cachoeira da Lixa); CT-PROINFA/PCHMRE no. 033/2004 (PCH Colino 1) and CT-PROINFA/PCH-MRE no. 034/2004 (PCH Colino 2),entered into between Espra and ELETROBRS - Centrais Eltricas Brasileiras S.A. Assignment and Binding of Revenues from the agreements entered into with ELETROBRS - Centrais Eltricas Brasileiras S.A.; Reserve account liquidity fund (Note 9); Credit insurance to conclude the project, which owing to the conclusion of the works, is already cancelled.
13.2 Maturities of the long-term portion (principal and charges) The portions classified in non-current assets (Consolidated) have the following payment schedule:
09/30/2011 Year of maturity: 2012 2013 2014 2015 2016 After 2016 TOTAL 15.762 27.926 28.280 28.654 29.049 338.580 468.251
14. Current tax liabilities

Parent company 09/30/2011 12/31/2010 CSLL payable FGTS payable 49 40 ICMS payable 1 1 INSS payable 207 140 INSS withheld from third-parties 2 1 IOF payable 2 IRPJ payable IRRF payable 26 108 IRRF on payroll 307 186 ISS payable 7 3 PIS, COFINS and CSLL 272 306 TOTAL 871 787 Consolidated 09/30/2011 12/31/2010 83 59 49 40 9 1 209 140 34 9 73 10 97 191 108 157 307 186 53 34 301 436 1.323 1.263
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15. Shareholders' equity

a. Capital
As of December 31, 2009, the Company's capital is R$46,536 composed of 1,086 thousand shares. On May 7, 2010, the Company increased its capital through the capitalization of the capital reserve balance, by R$119,272, to the new amount of R$165,808, divided into 108,622 nominative, book-entry shares with no par value, of which 83,191 are common shares and 25,431 preferred shares. On July 13, 2010, the Company made its initial public offering of 10,000,000 (ten million) of Share/Unit Deposit Certificates at R$15.00 per unit, totaling the amount of R$150,000. The units of Renova Energia are composed of two preferred shares and one common share and are listed at Level 2 of BM&FBOVESPA. This offering was settled on July 15, 2010. On August 12, 2010, there was the settlement of the supplementary extra lot of the initial public offering of seven hundred thirteen thousand, eight hundred (713,800) share depository certificates (units), at the price of R$15.00 per unit, totaling R$10,707. On July 13, 2010, the Company started the payments of the respective unit distribution processing the initial public offering. Of the gross amount of R$160,707, the total amount of R$13,689 was withheld as remuneration of the companies responsible for the offering and distribution and other distribution costs, whereas the net amount received was R$ 147,018. On March 17, 2011 through the re-confirmation of the minutes of the board of directors' meeting of January 18, 2011, the Company granted call option of 360,051 (three hundred thousand and sixty and fifty-one) Certificates of Deposits of Shares ("Units"), each representative of 1 (one) registered common share and 2 (two) preferred shares of the Company's authorized capital, at the exercise value of R$0.34 (thirty-four cents of Brazilian Real) for purchase option of Unit, which will result in the maximum dilution of 0.77% (seventy-seven hundredth per cent) for the current shareholders of the Company. On this date, the Company's capital increased from R$326,515,127.73 to R$326,637,545.07 (increase of R$122,417.34). On April 4, 2011, the Company authorized capital increase in the amount of R$42,500.00, whereby it issued 375,000 shares in the proportion of one (01) common share and two (02) preferred shares. The Company's capital increased from R$326,637,545.07 to R$326,680,045.07. On August 15, 2011, the Company authorized capital increase in the amount of R$63,725.52, whereby it issued 562,284 shares in the proportion of one (01) common share and two (02) preferred shares. The Company's capital increased from R$326,680,045.07 to R$326,743,770.59. On August 17, 2011, Renova's Board of Directors authorized a capital increase of R$378,131,309.60, through the issuance of 53,108,330 new common shares, at the issuance price of R$7.12 per common share ("Capital Increase").
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Issuance share price for capital increase was fixed, without unjustified dilution for current Company's shareholders, based on provisions of Article 170, Paragraph 1, I of Law 6,404/76, as amended ("Brazilian Corporate Law"), taking into consideration the Company's expected profitability, supported by the appraisal report attached to the Board of Directors' Meeting Minute. As a result of several capital increases, the Company's capital went from R$326,743,770.59 to R$704,875,080.19, represented by 146,813,876 common shares and 49,075,491 preferred shares. Note that the capital increase could be partially homologated for the limit value of the investment made by Light Energia or any amount between this investment and the capital increase value, due to the right of other shareholders of the Company to exercise the preference right to subscribe new issued common shares. On August 17, 2011, shareholders RR Participaes S.A., Infra Brasil Fundo de Investimento em Participaes, Fundo de Investimento em Participao Caixa Ambiental - FIP Caixa Ambiental, Banco Santander (Brazil) S.A. and Santa Barbara Fundo de Investimento em Participao waived the preference right.
On the same day, according to relevant fact published on August 17, 2011, Light Energia S.A. and Renova Energia S.A., in compliance with the provisions of Article 157, paragraph 4 of Law 6,404, of December 15, 1976, according to transaction announced in the market on July 8, 2011, Light S.A., through its wholly-owned subsidiary Light Energia S.A.("Light Energia"), paid up 50,561,797 common shares issued by Renova with a contribution of R$359,999,994.64. On September 16, 2011, the period to exercise the right of subscribing shares in the capital increase ended, considering subscription and payment of 50,561,797 common shares by Light Energia S.A. as previously mentioned, and on the exercise of preference rights, 52,797,813 common shares were subscribed and paid up at issuance price of R$7.12 per common share, totaling R$375,422,028.56. On September 30, 2011, paid-up capital of Renova Energia S.A. was R$702,165,799.15. Considering that 380,517 common shares were in excess, in the total amount of R$2,709,281.04, and that the interest of shareholders in subscription was higher than the effective number, excess was fully apportioned among shareholders that showed interest in subscribing, pursuant to the terms of Article 171, paragraph 7, item "b", of Law 6,404/76. Excess subscription period was from September 30 to October 6, 2011. After the subscription period of the 380,517 common shares, 87,398 common shares were paid up, details on remaining shares are in note 22 Subsequent Event. The Company's shareholders' chart on June 30, 2011 is as follows:
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RENOVA ENERGIA
PR Interests Members of the Board of Directors
Common Shares Quantity 69.453.904 254.400 23.809.814 11.651.467 3.071.000 4.666.666 2.580.000 1.840.681 93.518.118 % 74,268% 0,272% 25,5% 12,459% 3,284% 4,990% 2,759% 1,968% 100,0%
Preferred shares Quantity 573.416 507.592 47.619.627 23.302.933 6.142.000 9.333.332 5.160.000 3.681.362 48.700.635 % 1,177% 1,042% 97,8% 47,849% 12,612% 19,165% 10,595% 7,559% 100,0%
Total shares
Free Float
InfraBrasil Santander Equity FIP Ambiental FIP Santa Barbara
Others Total
% of Total Equity Capital Quantity % 70.027.320 49,239% 761.992 0,536% 71.429.441 50,225% 34.954.400 24,578% 9.213.000 6,478% 13.999.998 9,844% 7.740.000 5,442% 5.522.043 3,883% 142.218.753 100,00%
On September 30, 2011, the Company's shareholders are as follows:

RENOVA ENERGIA Controlling Block
RR Participaes Light Energia
Common Shares Quantity % 101.123.594 68,9% 50.561.797 34,4% 50.561.797 34,4% 45.690.282 31,1% 18.892.107 12,9% 228.769 0,2% 11.651.467 7,9% 3.071.000 2,1% 4.666.666 3,2% 3.862.200 2,6% 3.318.073 2,3% 146.813.876 100,0%
Preferred shares Quantity 0 0 49.075.491 573.416 456.332 23.302.933 6.142.000 9.333.332 7.724.400 1.543.078 49.075.491 % 0,0% 0,0% 100,0% 1,2% 0,9% 47,5% 12,5% 19,0% 15,7% 3,1% 100,0%
Total shares Quantity 50.561.797 50.561.797 94.765.773 19.465.523 685.101 34.954.400 9.213.000 13.999.998 11.586.600 4.861.151 195.889.367
% of Total Equity Capital % 25,8% 25,8% 48,4% 9,9% 0,3% 17,8% 4,7% 7,1% 5,9% 2,5% 100,0%
Other shareholders
RR Participaes* Members of the Board of Directors InfraBrasil Santander FIP Environmental Cash FIP Santa Barbara
Others Total
(*) remaining RR Participaes shares that are not in the control block - RR/Light Energia
b. Expenses with issue of shares

Expenses with issue of shares Parent company 09/30/2011 12/31/2010 34.241 13.686
The Company records all costs of share issuance transactions in a specific line. To issue shares related to the capital increase of Light Energia, the Company contracted an advisory company to render financial advisory services, fund raising through equity contribution and/or disposal of the Company's shares; the total cost of these services was 5% on transaction plus taxes, totaling R$20,555. As of December 31, 2010, the balance of R$13,686 referring to expenses with lawyers, advisors and structuring of the IPO carried out on July 13, 2010.
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16. Net operating income (Consolidated)

MWh 09/30/2011 09/30/2010 Supply of electric power (-) Deductions from revenue Cofins Pis 168.324 168.324 168.324 168.324 R$ 09/30/2011 28.088 (1.025) (843) (182) 27.063 09/30/2010 27.466 (1.002) (824) (178) 26.464
17. Operating expenses

Parent company 09/30/2011 09/30/2010 RECLASSIFIED Total 4.490 4.271 905 756 875 1.570 12.867 Total 2.942 2.589 628 770 141 3.896 10.966
Manageable Personnel, Management Outsourced services Rental and leases Traveling Depreciation Others Total
General and administrative 4.490 4.271 905 756 875 1.570 12.867
Consolidated 09/30/2011 Operation Non-manageable Tusd - Distribution system use charge Inspection fee 800 61 861 2.248 4.250 716 7.214 8.075 General and administrative 4.490 5.302 1.822 816 880 1.867 15.177 15.177 Total 800 61 861 4.490 7.550 1.822 816 5.130 2.583 22.391 23.252 09/30/2010 RECLASSIFIED Total 885 57 942 2.942 4.776 1.027 795 4.412 4.872 18.824 19.766
Personnel, Management Outsourced services Rental and leases Traveling Depreciation Others Total
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18. Financial income

Parent company 09/30/2011 09/30/2010 Financial income Yields from financial investments Interest received - Loans Interest received Discounts obtained Price-level Restatement Financial expenses Interest Interest - Loans Debt Charges IOF Bank expenses Total 7.130 834 2.950 3 Consolidated 09/30/2011 09/30/2010 9.608 5 3.779 2
1
8 47 8.020 (9) (96)
6 7 2
2.968 (22) (303)
1
20 47 9.681 (57)
6 10 4
3.801 (50)
(11.035) (711) (85) (11.888) (2.207)
(8.873) (215) (8) (9.146) (5.345)
(3.063)
(76) (24) (3.268) 4.752
(130) (5) (460) 2.508
19. Income and social contribution taxes

Consolidated Income tax S ocial contribution 09/30/2011 09/30/2010 09/30/2011 09/30/2010 28.088 27.466 28.088 27.466 8% 8% 12% 12% (2.247) (2.197) (3.371) (3.296) (3.059) (5.306) 24% (1.277) 18 (1.259) (1.194) (3.391) 25% (848) 18 (830) (3.059) (6.430) 9% (579) (1.194) (4.490) 9% (404)
Deemed IRPJ and CSLL calculation basis Rate - deemed profit IRPJ and CSLL Adjustments to reflect effective rate Other income IRPJ and CSLL calculation basis Effective rate IRPJ and CSLL Calculation Discoun in excess of R$0.240 per annum IRPJ and CSLL expenses
(579)
(404)
The income and social contribution taxes of current year are calculated based on the rates of 15% plus a surcharge of 10% on taxable income in excess of R$ 240 for income tax and 9% on taxable income for social contribution on net income, and take into account tax loss carryforward and negative basis of social contribution, limited to 30% of net profit.
The Company adopts the taxable income calculation regime, having determined the total accumulated in the amount of R$7,845 in 2011. Income and social contribution taxes under the deemed profit system are paid quarterly on the gross revenue, considering the percentage presumption, based on the rates defined in current legislation. (Basis of estimate of 8% and 12% on sales, income tax and social contribution, respectively, plus the calculation amount of other financial revenues).
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Tax presented in the consolidated position refers to subsidiary Espra and to financial revenues of some associates that have short-term investments. All companies adopt the deemed income taxation system.
20. Financial instruments

In compliance with Official Letter from the Brazilian Securities Commission CVM/SNC/SEP No.3/2009, CVM Instruction No. 475/2008, the Company made an evaluation of its financial instruments, where applicable. Sundry considerations The Company and its subsidiaries maintain operations with financial instruments. The management of these instruments is done through operating strategy and internal controls, aimed at assuring liquidity, security and profitability. The results obtained from such operations are in conformity with the policies adopted by Company's management. The management of the risks associated to these operations is conducted by applying practices established by Management and includes the monitoring of levels of exposure to each market risk, and estimates of future cash flows. Those practices establish a requirement of updating of the information in operating systems, plus exchanging information and performing the transaction with the counterparties. a. Market value of financial instruments Fair value Fair value is the amount for which an asset could be exchanged, or a liability settled, between parties with knowledge of the deal and interest in performing it, in a transaction where none of the parties is favored. The concept of fair value deals with innumerous variations of metrics used for the purpose of reliably measuring an amount. To calculate the fair value we project the cash flows from the financial instruments up to the end of the operations by following the contractual rules and use as a discount rate the future interbank deposit rate disclosed by BM&F Bovespa. Some of the headings show a book balance equivalent to fair value, and this situation occurs because the financial instruments' features are similar to those of instruments traded in the market. The use of different market methodologies may have a material effect on the estimated realizable value. Transactions with financial instruments are stated in the balance sheet at book value, which is equivalent to their fair value under the headings of cash and cash equivalents, trade accounts receivable, related parties, escrow deposits, and trade accounts payable. For loans, financing and debt charges, book balances differ from fair value.
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Pare nt company Fair value Financial asse ts Current Cash and cash equivalents Receivables from suppliers Pledges and restricted deposits Non-current Related party transactions Pledges and restricted deposits Financial liabilitie s Current Suppliers Loans and financing Non-current Related party transactions 4.788 153.947 5.989 1.577 4.788 151.016 5.989 1.577 09/30/2011 12/31/2010 358.831 2.316 59 38.193 448 7.251 116.091 59 212 444 Book value 09/30/2011 12/31/2010 358.831 2.316 59 38.193 448 7.251 116.091 59 212 444
C onsolidate d Financial assets Curre nt Cash and cash equivalents T rade accounts receivable Receivables from suppliers Pledges and restricted deposits Non-current Related party transactions Pledges and restricted deposits Financial liabilities Curre nt Suppliers Loans and financing Non-current Loans and financing Fair value 09/30/2011 12/31/2010 487.242 4.122 7.108 59 236 11.907 18.569 3.918 121.059 59 164 12.019 Book value 09/30/2011 12/31/2010 487.242 4.122 7.108 59 236 11.907 18.569 3.918 121.059 59 164 12.019
15.375 362.163 473.914
8.100 7.796 128.586
15.375 359.232 473.047
8.100 7.190 125.599
Loans and financing in local currency with Banco Santander S.A., the Promissory Note with Banco Votorantim, and Promissory Notes with Ita are classified as financial liabilities and are recorded at amortized cost, correspond to loans with specific purposes for financing of investments in generation of electricity, indexed to 100% of CDI and prefixed rates for the Santander financing and 100% DI + 3 % p.a. for the promissory note of Banco Votorantim, and 101.15% of CDI for the promissory notes of Banco Ita. Loans and financing in domestic currency by BNB are stated as financial liabilities and are recorded at their amortized cost, and refer to loans with the specific purpose of funding investments in electricity generation, indexed to pre-fixed rates.
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Pare nt company 09/30/2011 Fai r val ue through the stateme nt of income Fair value through the state me nt of i ncome 12/31/2010
Financial asse ts Curre nt Cash and cash equivalent s Receivables from suppliers Pledges and restrict ed deposits Non-curre nt Relat ed party transact ions Pledges and restrict ed deposits Financial li abili tie s Curre nt Suppliers Loans and financing Non-curre nt Relat ed party transact ions
Loans and re ce ivabl es
He ld to maturity
O the rs at amortiz e d cost
Total
Loans and re cei vable s
He ld to maturi ty
Total
358.831 2.316 59
358.831 2.316 59
7.251 115.655 59
7.251 115.655 59
38.193 448
38.193 448
212 444
212 444
4.788 151.016
4.788 151.016
5.989
5.989 -
1.577
1.577
Consoli date d 09/30/2011 Fai r val ue through the stateme nt of income 487.242 4.122 7.108 59 Fair value through the state me nt of i ncome 12/31/2010
Financial asse ts Curre nt Cash and cash equivalent s T rade account s receivable Receivables from suppliers Pledges and restrict ed deposits Non-curre nt Relat ed party transact ions Pledges and restrict ed deposits Financial li abili tie s Curre nt Suppliers Loans and financing Non-curre nt Loans and financing
Loans and re ce ivabl es
He ld to maturity
Total
Loans and re cei vable s
He ld to maturi ty
Total
4.122 7.108 59
18.569 3.918 121.059 59
18.569 3.918 121.059 59 -
236 11.907
236 11.907
164 12.019
164 12.019
15.375 359.232
15.375 359.232
8.100 7.190
8.100 7.190
473.047
473.047
125.599
125.599
In order to establish a hierarchy for financial instruments with basis on their fair value, there is a need for information that is more consistent and updated with the Company's external context. For measuring the fair value of Company instruments, the requirements are as follows: Level 1 prices agreed on in active markets for identical assets and liabilities; Level 2 Different inputs of the prices negotiated in active markets included at Level 1 that are observable for the asset or liability, either directly or indirectly; Level 3 - for assets or liabilities that are not based on variables observable in the market; The methods of level segregation for the fair value of the Company's financial instruments were based on an individual analysis, considering similar operations found in the market and observing comparability criteria. The analysis was structured taking into consideration the following items: terms, values, grace period, indexes and operating markets.
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The simpler and easier the access to information on comparative instruments, the more active the market will be, and the more restricted the information, the more restricted the market will be for measuring the instrument.
Pare nt company Measurement of fair value Financial assets Curre nt Cash and cash equivalents 358.831 358.831 487.242 487.242 09/30/2011 Similar marke t Level 2 Consolidate d Me asure me nt of fair value 09/30/2011 Similar market Leve l 2
b. Market risk The market risk refers to the possibility of monetary loss arising from fluctuations of variables that have impact on prices and rates negotiated in the market. Said fluctuations impact on virtually all sectors and, therefore, are financial risk factors. The loans and financing taken by the Company and its affiliated company Espra shown in Note 13 are from BNB, Banco Votorantim and BNDES. Contract rules for financial liabilities create risks related to these exposures. On September 30, 2011, the Company and its subsidiaries had a market risk associated to interbank deposit rate, longterm interest rate and the general market price index. To determine market risks associated to interest rates we considered the general market price index, the interbank deposit rate CDI, TJLP, IGPM-M and IPCA, and the long-term interest rate and extended consumer price index but took into account that the Brazilian economy has a favorable outlook for solid growth and investments in infrastructure, as exemplified by governmental programs such as the Growth Acceleration Program. A controlled inflation and a credit supply are important factors to obtain low-risk funding. Considering that the market rate (or the opportunity cost of capital) is defined by this agent, bearing in mind a risk premium compatible with the area's activities and that, as it is not possible to seek out other alternatives or different market opportunities and/or methodologies for it estimates, the market value of this portion of domestic loans is close to its book value, as are the other financial assets and liabilities assessed. c. Sensitivity analysis (Consolidated) The direct and indirect subsidiaries have loans and financings in domestic currency. The following table considers rate scenarios with the respective effect on the Company's income figures, with the applicable exposures of interest rate fluctuations and other indexes, to these transactions' maturity dates. The likely scenario was established based on the Company's business plan as approved by Management, with balances outstanding on September 30, 2011. Scenarios II and III represent, respectively, 25% and 50% of increase in the risk, and scenarios IV and V represent, respectively, 25% and 50% of deterioration or reduction: Below:
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Financial asset Pledge investment - BNB Energtica Serra da Prata S.A. Investments - BNB Energtica Serra da Prata S.A. Investments - BNB Energtica Serra da Prata S.A. Investments - ITA Renova Energia S.A. Investments - VOTORANTIM Renova Energia S.A. Pledge investment - CITIBANK Salvador Elica Participaes S.A. Investments - CITIBANK Centrais Elicas Porto Seguro S.A. Investments - CITIBANK Centrais Elicas Planaltina S.A. Investments - CITIBANK Centrais Elicas Guirap S.A. Investments - ITA Centrais Elicas Rio Verde S.A. Investments - ITA Centrais Elicas N. S. Conceio S.A. Investments - CITIBANK Centrais Elicas N. S. Conceio S.A. Investments - CITIBANK Centrais Elicas Paje do Vento S.A. Investments - CITIBANK Centrais Elicas Guanambi S.A. Investments - CITIBANK Centrais Elicas Serra do Saltos S.A. Investments - ITA Centrais Elicas Pinda S.A. Investments - ITA Centrais Elicas Igapor S.A. Investments - ITA Centrais Elicas Lic. de Almeida S.A. Investments - ITA Centrais Elicas Candiba S.A. Investments - ITA Centrais Elicas Ilhus S.A. Reference for financial assets CDI - Year Financial liability Loans and financing - NP Renova Energia S.A. Loans and financing - NP Centrais Elicas Candiba S.A. Loans and financing - NP Centrais Elicas Igapor S.A. Loans and financing - NP Centrais Elicas Ilhus S.A. Loans and financing - NP Centrais Elicas Licnio de Almeida S.A. Loans and financing - NP Centrais Elicas Pinda S.A. Reference for financial liabilities CDI - Year
Risk CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI CDI Rate increase in
Probable (I) 11.459 6.355 1.874 105.394 243.248 15.310 500,7 3.204 5.307 20.284 4.661 16.873 2.603 1.302 3.405 845,5 14.672 845,4 339,3 1.617
Scenario II Scenario III Scenario IV Scenario V 11.515 6.533 1.876 105.743 244.059 15.387 500,8 3.205 5.309 20.353 4.677 16.878 2.604 1.302 3.406 846,2 14.683 846,1 339,6 1.618 25% 11.571 6.711 1.879 106.091 244.871 15.465 501,0 3.206 5.311 20.423 4.693 16.884 2.605 1.303 3.407 846,8 14.694 846,7 339,8 1.619 50% 11.403 6.177 1.871 105.046 242.436 15.232 500,5 3.203 5.305 20.215 4.645 16.867 2.603 1.301 3.403 844,9 14.661 844,8 339,1 1.615 -25% 11.348 6.000 1.869 104.697 241.624 15.155 500,3 3.202 5.304 20.146 4.629 16.861 2.602 1.301 3.402 844,2 14.649 844,1 338,8 1.614 -50%
Risk CDI CDI CDI CDI CDI CDI Rate increase in
Probable (I) 151.016 18.308 71.196 22.376 45.769 45.769
Scenario II Scenario III Scenario IV Scenario V 151.270 18.378 71.468 22.461 45.944 45.944 25% 151.524 18.447 71.740 22.547 46.119 46.119 50% 150.762 18.238 70.924 22.290 45.594 45.594 -25% 150.508 18.168 70.652 22.205 45.419 45.419 -50%
These sensitivity analysis were prepared according to CVM Instruction no. 475/2008, with the purpose of measuring the impact of changes in market variables on each of the Company's financial instruments. However, settling the transactions involving such estimates may result in sums different from those estimated, owing to the subjectivity contained in the procedure used to prepare these analyses.
60
d. Liquidity risk The liquidity risk shows the subsidiary's and parent company's ability to settle assumed obligations. To settle assumed obligations and determine the subsidiary's financial capacity to adequately meet its commitments, loan maturities, and other obligations included in the disclosures. More detailed information on loans taken by the Company is shown in Note 13. The Company's management only makes use of credit facilities that allow its operating leverage. This assumption is confirmed by observing the characteristics of the loans taken. The flow of realization for the liabilities assumed under their contractual conditions is presented in the table below.
Consolidated 12/31/2010 Maturity Maturity in 2012 up in 2015 up to 2014 to 2016
Total Contractual obligations Loans, financing and debt charges
Maturity in 2011
Maturity over 2016
132.789
7.190
Total Contractual obligations Loans, financing and debt charges
Maturity in 2011
28.965 12.171 Consolidated 09/30/2011 Maturity Maturity in 2012 up in 2015 up to 2014 to 2016
84.463
Maturity over 2016
825.686
357.435
71.968
57.703
338.580
e. Credit risk Credit risk includes the possibility that the Company may fail to realize its rights. This description is directly related to headings such as cash and cash equivalents, trade accounts receivable, escrow deposits, and others. In the energy sector information on operations are submitted to the regulatory agency, which maintains active data on energy produced and consumed, and this structure results in plans for the independent and uninterrupted operation of the electric system. Energy sales arise from auctions and agreements with other companies. This mechanism brings reliability and controls default among participants of the industry. Another credit risk source is that associated to financial investments. The management of these financial assets is done through operating strategies and internal controls, aimed at assuring liquidity, security and profitability. The Company does not make investments for speculative purpose. The results obtained from such operations are consistent with the policies and strategies defined by Company's Management.
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The Company manages its risks continuously, assessing whether the practices adopted in the execution of its activities are in line with the policies advocated by management. The Company does not make use of equity hedging financial instruments, as it believes that the risks to which its assets and liabilities are ordinarily exposed compensate each other in the natural course of its activities. The management of these financial instruments is done through operating strategies, aimed at liquidity, profitability and security. The control policy consists of permanent follow-up of the conditions engaged versus those in force in the market. The Company does not make any speculative investments in derivatives or any other risky assets. Regarding financial assets from financial investments, the Company only conducts transactions with financial institutions classified as low risk by rating agencies in order to ensure a higher profitability while aggregating security to the results. Management's understanding is that its contracted financial investment transactions do not expose the Company to significant risks that might, in the future, generate material losses. In addition, in regard to the credits with suppliers described in note 6, management also believes that there are no material risks in relation to the realization of the respective credits. f. Transactions with derivative financial instruments There were no transactions with derivative financial instruments during the fiscal years in question. g. Capital management
09/30/2011 12/31/2010
Financing and loan debt (-) Cash and cash equivalents Net debt Shareholders' equity Capital Financial leverage index - %
825.686 487.242 338.444 643.446 667.925 51%
132.789 18.569 114.220 288.584 312.829 37%
The Group's objectives in managing its capital are to safeguard its business continuity capacity to offer return to shareholders and benefits to the other stakeholders besides maintaining an optimal capital structure to reduce this cost. In order to keep or adjust the capital structure, the Group may review the dividend payment policy, refund capital to the shareholders or, also, issue new shares or sell assets to reduce, for instance, the indebtedness level .
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21. Insurance coverage

Plants Civil liability 09/30/2011 182.000 20.000
The indirect subsidiary Espra maintains insurance contracts with coverage determined in accordance with the orientation of specialists, considering the nature and the degree of risk, in amounts considered sufficient to cover possible significant losses on its assets and responsibilities. The risk assumptions, due to their nature, are out of the scope of the review of financial interim information, and therefore, were not examined by our independent auditors. The main values at risk with insurance coverage are R$ 202,000 for power generation and transmission. Due to participation in the Ler 2009 and 2010 auctions and construction of the wind farms, the company has the following insurance policies still active:
Subject of the Guarantee Surety bond guaranteeing the faithful performance of the obligations of implementation of the 14 Wind Energy Generation Centers of LER 2009. Surety bond guaranteeing the faithful performance of the obligations of implementation of the 06 Wind Energy Generation Centers of LER 2010. ICG surety bond Guarantee LER 2009 Amount insured Term Beginning Insured End
R$53,910
03/29/2010
10/01/2012
National Agency Electrical Energy
of
R$29,470
12/06/2012
12/01/2013
of
R$16,275
08/13/2010
04/08/2011
of
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The company also has the following insurance policies:
Subject of the Guarantee General civil liability insurance for directors and officers - D&O Civil Liability Insurance for Public Offering of Shares POSI
Amount insured R$30,000
Maturity Beginning End 12/18/2010 12/18/2011
Insured Consolidated Balance Sheet Renova Energia S.A Consolidated Balance Sheet Renova Energia S.A
R$25,000
07/07/2010
07/07/2013
22. Subsequent event

Surplus subscription and excess cancellation The period for subscribing surplus, as detailed in note 15, was from September 30 to October 6, 2011. After this period of subscribing surplus of total 380,517 common shares, purchase option of 87,398 common shares was exercised, and paid up on October 6, 2011, in the total amount of R$622,273.76. On October 6, 2011, paid-up capital of Renova Energia S.A., which was R$702,165,799.15 became R$702,788,072.91. Cancellation of surplus in the total amount of 293,119 is estimated to occur by the end of October, when the Board of Directors' Meeting will be held to homologate capital increase and cancel remaining shares. * Ricardo Lopes Delneri Chief Executive Officer * *
Pedro V.B. Pileggi Investor Relations Officer with Investors and New Business
Renato do Amaral Figueiredo Operations Director Victor Pereira de Souza Financial Director, of Controllership, Planning and Administrative Luiz Eduardo Bittencourt Freitas Chief Legal and Regulatory Officer
Marcelo Amaral da Silva Engineering and Construction Director Ney Maron de Freitas Director for the Environment
Reinaldo Silveira Accountant CRC 014311-0/0-S- SP
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Contents

MESSAGE FROM THE MANAGEMENT

Based on the total amount sold in 2010.

2. Analysis of the Consolidated Income Statement

Renova Energia S.A.

2.3. Consolidated Administrative Costs

% 13% 14% 300% -33% 0% 42%

Consolidated Balance Sheet

Current Assets Disposable cash Clients Others

362.3 358.8 3.5

162.5 60.3 102.2

501.6 487.2 4.1 10.3

173.2 66.4 3.9 102.9

157.1 149.8 4.8 2.5 646.1 667.9 (21.8) 803.2

4.0 2.6 1.3 1.9 1.9 291.3 312.8 (21.5) 297.2

440.9 0.5 38.2 354.8 5.7 41.7 803.2

134,7 0.4 0.2 101.6 2.7 29.8 297.2

986,4 12.0 0.2 0.1 195.4 778.7 1,488.0

252,4 11.7 0.2 0.1 197.4 43.0 425.6

3. RNEW11 performance on the BM&F Bovespa

REPORT ON THE REVIEW OF QUARTERLY INFORMATION

Jos Luiz Ribeiro de Carvalho Accountant CRC 1SP141128/O-2

Renova Energia S.A.

Consolidated 09/30/2011 12/31/2010

358.831 606 2.316 140 59 419

7.251 1.118 116.091 174 59 4.852

487.242 4.122 973 7.108 1.680 59 419

18.569 3.918 1.274 121.059 576 59 105

Renova Energia S.A.

Consolidated 09/30/2011 12/31/2010

4.788 148.818 1.016 871 1.610 59

5.989 787 652 59

15.375 353.002 4.433 1.323 1.610 511

8.100 6.336 854 1.263 652 150

462.742 5.509 468.251

See the accompanying notes to the financial statements.

Renova Energia S.A.

From 07/01/2011 to 09/30/2011

From 07/01/2010 to 09/30/2010

From 01/01/2011 to 09/30/2011

From 01/01/2010 to 09/30/2010

Net operating income

(4.739) (4.590) (30) (63) (56)

(12.867) (11.730) (875) (262)

(10.966) (10.543) (200) (141) (82)

(5.232) (4.733) (424) (75)

(5.232) (584) 5.625 5.041

(4.739) (131) 1.758 1.627

(12.867) (3.268) 8.020 4.752

(10.966) (460) 2.968 2.508

Equity income (loss)

Income (loss) before taxes

Current income tax and social contribution

Diluted earnings per share attributable to Company's per preferred share

From 07/01/2011 to 09/30/2011

From 07/01/2010 to 09/30/2010

From 01/01/2011 to 09/30/2011

From 01/01/2010 to 09/30/2010

Net operating income

(2.790) (1.416) (1.100) (274) 6.700

(8.075) (4.250) (2.964) (861) 18.988 (15.177) 2 (13.940) (880) (359)

(5.997) (5.428) (426) (143)