AES Tietê Energia S A : Material Fact - Memorandum of Understanding with Ferbasa

AES TIETÊ ENERGIA S.A.

Publicly Held Company

Corporate Taxpayer ID (CNPJ/MF) 04.128.563/0001-10

Company Registry (NIRE) 35.300.183.550

MATERIAL FACT

AES Tietê Energia S.A. ("AES Brasil" or "Company") (B3: TIET11; TIET4; TIET3), hereby announces to its shareholders and the Market in general that:

On the date hereof, a Memorandum of Understanding ("MoU" or "Memorandum") was signed with CIA. de Ferro Ligas da Bahia - Ferbasa S.A. ("Ferbasa") for the supply by the Company of 80 average MW for a period of 20 years, with energy supply from 2024 onwards. The parties, after signing the MoU, which binds commercial terms and conditions, begin the negotiation of the Electricity Purchase and Sale Agreement ("PPA"), which will detail the commitments already signed in the Memorandum and establish essential clauses to the celebration of the deal..

The wind farm ("Project") will be developed at the Cajuína Wind Complex, in the State of Rio Grande do Norte, a region where AES Brasil creates its wind cluster, with construction expected to begin in 2021. The Project has 165 MW of installed wind capacity, equivalent to 92 average MW of assured energy at P50.

This step reinforces the Company's portfolio growth and diversification strategy through the development of projects from sources complementary to hydro and with long-term contracts, aiming to create value for shareholders.

The Company will keep the market and its shareholders duly informed of subsequent facts.

São Paulo, January 12, 2021

AES TIETÊ ENERGIA S.A.

Clarissa Della Nina Sadock Accorsi

Executive Vice-President and Investor Relations Officer