AES Tiete : Material Fact - SPA Alto Sertão III

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 TIETÊ" or "Company") (B3: TIET11, TIET3, TIET4), in compliance with paragraph 4, article 157 of Federal Law 6,404/76 and CVM Instruction 358 of January 3, 2002 and other applicable provisions, complementing the Material Fact notice disclosed on March 21, 2019, hereby informs that the Company and Renova Energia S.A. ("Renova") signed on this date, an agreement for the acquisition of the entire ownership interest in the special purpose companies that make up the Alto Sertão III Wind Complex ("Alto Sertão III"), as well as in certain wind power projects under development ("Pipeline") owned by Renova ("Transaction"). The Transaction closing is subject to the fulfillment of conditions precedent.

Alto Sertão III is comprised of a "Phase A", with capacity of 438 MW in pre-operational stage, and of a "Phase B", with projected capacity of 305 MW ready to start construction. The Transaction includes the abovementioned Pipeline of around 1,100 MW.

The acquisition price is up to R$350 million for Phase A, including the payment of its overdue credits, up to R$90 million for Phase B and up to R$76 million for the Pipeline, in the latter case depends on confirmatory due diligence process. In addition to the amounts mentioned, the Company will assume the financial debt of the project, estimated at R$988 million. The Transaction price is subject to adjustments that are typical for this kind of operation, which include, among others, working capital variations, as well as an increase due to earn out if the wind performance at Phase A exceeds certain agreed benchmark.

After the conclusion of the Transaction, AES Tietê will take a big step towards executing its strategy of diversifying its portfolio by adding renewable generation capacity. The Transaction will create a sustainable growth path in the short (Phase A), medium (Phase B) and long terms (Pipeline) for AES Tietê.

Upon the conclusion of the Transaction, AES Tietê will call an extraordinary shareholders meeting to deliberate on approving the Transaction, in accordance with article 256 of the Brazilian Corporations Law, as soon as an appraisal report prepared by a specialized firm is concluded. Dissenting shareholders are entitled to the right of withdrawal and the respective reimbursement to be paid according to the equity value of the shares to shareholders dissenting from the resolution and who were shareholders on record as of the disclosure of this Material Fact, amounts to the equivalent of R$0,774365 per share, or R$ 3,871825 per unit, an unit comprised of 4 (four) preferred shares and of 1 (one) common share issued by the Company.

1

The Company will keep the market and its shareholders duly informed of future developments.

São Paulo, April 9, 2019

AES TIETÊ ENERGIA S.A.

Clarissa Della Nina Sadock Accorsi

Executive Vice President and Investor Relations Officer

2