Companhia Paranaense de Energia - Copel (ELP): Análise de Pestle [Jan -2025 Atualizado]

Na paisagem dinâmica da infraestrutura de energia brasileira, a Companhia Paranaense de Energia - Copela surge como uma potência fundamental, navegando em terrenos políticos, econômicos e tecnológicos complexos. Com um compromisso robusto com o desenvolvimento sustentável e as soluções de energia inovadora, a Copel está na encruzilhada de desafios e oportunidades transformadoras que moldarão o futuro da geração de energia em Paraná e além. Mergulhe nessa análise abrangente de pestle para descobrir as dimensões multifacetadas que impulsionam a evolução e resiliência estratégica e resiliência da empresa crítica.

Companhia Paranaense de Energia - Copel (ELP) - Análise de Pestle: Fatores Políticos

Empresa estatal com influência do governo

A partir de 2024, o governo do Estado de Paraná possui 31,14% do capital de voto da Copel e 62,99% do total de ações de votação. O estado mantém controle significativo sobre a tomada de decisão estratégica.

Categoria de acionistas	Porcentagem de propriedade
Governo do Estado de Paraná	62.99%
Investidores Institucionais Privados	25.41%
Investidores estrangeiros	7.23%
Investidores individuais	4.37%

Ambiente Regulatório

A Copel opera sob a estrutura regulatória do setor de eletricidade do Brasil, governado por agências -chave:

• Agência Nacional de Energia Elétrica (Aneel)
• Ministério das Minas e Energia
• Operador do Sistema Nacional (ONS)

Sensibilidade política e desenvolvimento de infraestrutura

Os investimentos em infraestrutura da Copel são diretamente influenciados pelas políticas do governo estadual e federal. Em 2023, a empresa investiu R $ 1,2 bilhão em projetos de infraestrutura de energia em Paraná.

Estratégias políticas de transição de energia

As diretrizes políticas brasileiras exigem alvos de energia renovável. O atual portfólio de energia renovável da Copel inclui:

Fonte de energia	Capacidade instalada (MW)	Porcentagem de total
Hidrelétrico	5,180	68.4%
Vento	606	8.0%
Solar	257	3.4%

Indicadores de risco político

• Custos de conformidade regulatória: estimado R $ 350 milhões anualmente
• Índice de Risco Político para Utilitários Brasileiros: 5.7/10
• Potenciais mudanças de política impacto: estimado 12-15% de variabilidade da receita

Companhia Paranaense de Energia - Copel (ELP) - Análise de Pestle: Fatores Econômicos

Geração de eletricidade, transmissão e distribuição

A Copel gerou 5.525,8 GWh de eletricidade em 2022, com 99,6% de fontes renováveis. A capacidade total de geração instalada atingiu 6.909,6 MW.

Fonte de geração	Capacidade (MW)	Percentagem
Hidrelétrico	4,540.7	65.7%
Vento	781.5	11.3%
Solar	131.4	1.9%
Térmico	1,456.0	21.1%

Exposição econômica brasileira

Em 2022, a Copel registrou receita operacional líquida de R $ 9,2 bilhões, com um lucro líquido de R $ 1,1 bilhão. O crescimento do PIB do Brasil foi de 3,1% em 2022.

Investimento de energia renovável

A Copel investiu R $ 1,4 bilhão em projetos de infraestrutura e expansão em 2022. Investimentos de energia renovável compreendiam 68% do gasto total de capital.

Categoria de investimento	Valor (r $ milhão)
Geração	412.5
Transmissão	286.3
Distribuição	701.2

Indicadores de instabilidade econômica

A taxa de inflação do Brasil foi de 5,79% em 2022. O índice de dívida / patrimônio da Copel foi de 0,65 no mesmo período, indicando alavancagem financeira moderada.

Métrica financeira	2022 Valor
EBITDA	R $ 2,8 bilhões
Dívida líquida	R $ 3,6 bilhões
Margem operacional	22.3%

Companhia Paranaense de Energia - Copel (ELP) - Análise de Pestle: Fatores sociais

Provedor crítico de infraestrutura para a população do estado de Paraná

A Copel atende 4,8 milhões de consumidores em 394 municípios no estado de Paraná, com uma cobertura de distribuição de energia elétrica de 95,3% do território do estado.

Categoria de consumidor	Número de consumidores	Porcentagem de total
residencial	3,620,000	75.4%
Comercial	380,000	7.9%
Industrial	260,000	5.4%
Rural	340,000	7.1%
Setor público	200,000	4.2%

Aumento da demanda social por soluções de energia sustentável e limpa

Copel investiu R $ 128 milhões Em projetos de energia renovável em 2023, com 42% de sua matriz de energia derivada de fontes renováveis.

Tipo de energia renovável	Capacidade instalada (MW)	Porcentagem de total
Hidrelétrico	4,540	67.3%
Vento	620	9.2%
Solar	380	5.6%

Compromisso com a responsabilidade social e programas de desenvolvimento comunitário

Copel alocado R $ 42,5 milhões às iniciativas de responsabilidade social em 2023, com foco na educação, preservação ambiental e desenvolvimento comunitário.

• Os programas educacionais beneficiaram 95.000 estudantes
• Projetos de preservação ambiental cobriram 12.000 hectares
• Iniciativas de desenvolvimento comunitário apoiaram 280 comunidades locais

Crescente conscientização pública sobre questões ambientais e de eficiência energética

A Copepel implementou programas de eficiência energética atingindo 340.000 consumidores, resultando em 186 GWh de economia de energia em 2023.

Programa de eficiência energética	Os consumidores alcançaram	Energia salva (GWH)
Eficiência residencial	240,000	86
Eficiência industrial	62,000	58
Eficiência comercial	38,000	42

Companhia Paranaense de Energia - Copel (ELP) - Análise de Pestle: Fatores tecnológicos

Investimentos significativos em tecnologias de grade inteligente e de transformação digital

A Copel investiu R $ 182,3 milhões em tecnologias de transformação digital em 2022. A Companhia implementou sistemas avançados de gerenciamento de grade, cobrindo 100% de sua rede de distribuição no estado de Paraná.

Categoria de investimento em tecnologia	Valor do investimento (R $)	Porcentagem do orçamento de tecnologia total
Infraestrutura de grade inteligente	89,7 milhões	49.2%
Sistemas de transformação digital	62,5 milhões	34.3%
Atualizações de segurança cibernética	30,1 milhões	16.5%

Expandindo o portfólio de energia renovável, incluindo projetos eólicos e solares

Atualmente, a Copel opera 12 parques eólicos com uma capacidade total instalada de 404,4 MW. Os projetos solares representam 150 MW adicionais de capacidade de geração renovável.

Tipo de energia renovável	Número de projetos	Capacidade total instalada (MW)
Parques eólicos	12	404.4
Projetos solares	8	150

Implementando sistemas avançados de medição e gerenciamento de energia

A Copepel implantou 850.000 medidores inteligentes em sua rede de distribuição em 2022, representando 62% do total de conexões de clientes. A infraestrutura de medição inteligente permite o monitoramento do consumo de energia em tempo real e a melhoria da eficiência da grade.

Focando na inovação e na modernização tecnológica da infraestrutura energética

R $ 45,6 milhões de R $ 45,6 milhões, especificamente para pesquisa e desenvolvimento de tecnologias inovadoras de energia em 2022. As principais áreas de foco incluem resiliência da grade, geração distribuída e soluções de armazenamento de energia.

Área de foco na inovação	Investimento em P&D (R $)	Objetivos da tecnologia primária
Resiliência da grade	18,2 milhões	Sistemas de proteção avançada
Geração distribuída	15,7 milhões	Integração da Microgrid
Armazenamento de energia	11,7 milhões	Desenvolvimento da tecnologia de bateria

Companhia Paranaense de Energia - Copel (ELP) - Análise de Pestle: Fatores Legais

Conformidade regulatória no setor de energia brasileira

Copel opera sob o Estrutura regulatória de eletricidade brasileira (Aneel), com obrigações legais específicas definidas pela Resolução nº 666/2015 e pela Lei nº 10.848/2004.

Aspecto regulatório	Detalhes da conformidade	Órgão regulatório
Geração de energia	100% de conformidade com os regulamentos da Aneel	Aneel
Licença de distribuição	Válido até dezembro de 2045	Ministério das Minas e Energia
Concessões operacionais	R $ 1,2 bilhão em investimentos em concessão	Governo brasileiro

Estrutura regulatória nacional de eletricidade

A Copel adere à estrutura regulatória abrangente de Aneel, que inclui:

• Conformidade com regulamentação tarifária
• Padrões de qualidade de serviço
• Requisitos operacionais técnicos

Desafios legais ambientais e operacionais

Desafio legal	Impacto potencial	Estratégia de mitigação
Licenciamento ambiental	R $ 350 milhões em possíveis custos de conformidade ambiental	Gestão ambiental proativa
Mandatos de energia renovável	Requisito de portfólio de energia renovável de 25%	Investimentos de energia renovável em andamento

Requisitos de governança corporativa e transparência

Copel está em conformidade com Padrões de governança corporativa de nível 2, exigido pelos regulamentos da B3 Exchange.

Métrica de Governança	Nível de conformidade	Padrão regulatório
Relatórios de transparência	100% de conformidade com os regulamentos da CVM	Comissão de Valores Mobiliários Brasileiros
Membros independentes do conselho	40% de representação independente	Código de Governança Corporativa
Divulgação financeira	Relatórios trimestrais e anuais arquivados	Requisitos de bolsa de valores B3

Companhia Paranaense de Energia - Copel (ELP) - Análise de Pestle: Fatores Ambientais

Forte compromisso com a geração de energia sustentável

O portfólio de energia renovável da Copepel, a partir de 2024, compreende:

Fonte de energia	Capacidade instalada (MW)	Porcentagem de geração total
Hidrelétrico	4,908.7	95.2%
Vento	131.4	2.5%
Solar	48.6	0.9%
Biomassa	41.3	0.8%

Investimentos significativos em projetos de energia renovável

Investimento de energia renovável da Copepel em 2023-2024:

Tipo de projeto	Valor do investimento (BRL)	Aumento da capacidade esperada
Energia eólica	R $ 412.000.000	85 MW
Energia solar	R $ 276.500.000	62 MW

Implementando estratégias de conservação ambiental e redução de carbono

Métricas de redução de carbono para Copel:

• Alvo de redução de emissões de CO2: 30% até 2030
• Pegada de carbono atual: 0,0382 TCO2E/MWH
• Compartilhamento de energia renovável na geração Mix: 98,6%

Aderir aos regulamentos de proteção ambiental brasileira

Investimentos de conformidade ambiental em 2024:

Área de conformidade regulatória	Valor do investimento (BRL)
Licenciamento ambiental	R $ 18.700.000
Conservação da biodiversidade	R $ 12.500.000
Gerenciamento de resíduos	R $ 6.300.000

Companhia Paranaense de Energia - COPEL (ELP) - PESTLE Analysis: Social factors

Public perception is shifting from a state entity to a private utility, requiring service quality improvements.

The transition of Companhia Paranaense de Energia (COPEL) from a state-controlled entity to a corporation with dispersed ownership fundamentally alters public expectation. Customers no longer view the company as a government service but as a private utility, demanding a higher standard of reliability and responsiveness. This shift means that service quality, measured by metrics like the Frequency of Equivalent Interruptions per Consumer Unit (FEC) and the Duration of Equivalent Interruptions per Consumer Unit (DEC), is now a direct driver of public trust and regulatory scrutiny.

To proactively manage this perception and meet the new performance bar, COPEL is executing massive infrastructure programs. Between 2019 and 2025, the company is investing a total of R$ 15.7 billion in its assets, with approximately 72% of that capital directed toward the distribution network, which is the customer-facing part of the business. In 2025 alone, the company is applying R$ 2.5 billion to works on the energy grid, focusing on modernization and expansion. That's a clear action to back up the new private-sector promise.

Energy consumption growth in Paraná is tied to regional GDP and industrial activity.

Energy consumption in COPEL's concession area is a direct, near-term barometer of the Paraná state economy. The growth in the total 'market wire' consumption-which includes captive and free market customers-was 3.3% in the first quarter of 2025 compared to the same period in the prior year. This growth is a clear indicator of sustained economic activity, with the state's Gross Domestic Product (PIB) being the fourth largest in Brazil.

The consumption profile highlights the key sectors driving demand, which is crucial for capacity planning. The industrial segment, which is the largest consumer, saw a 3.1% increase in usage in the first quarter of 2025. The residential sector, however, is growing faster, at 5.4% in the same period, reflecting both new connections and higher per-home usage. Here's the quick math on where the power is going:

Segment	Share of Consumption (Q1 2025)	Consumption Growth (Q1 2025 Y-o-Y)
Industrial	34%	+3.1%
Residential	28%	+5.4%
Services and Commerce	~20%	N/A (Strong growth noted in 2024)

The industrial segment's demand is heavily concentrated, with the food and beverage manufacturing sector accounting for 38% of all industrial electricity consumption in Paraná. That's a significant concentration risk, but it also means targeted infrastructure upgrades can yield outsized reliability benefits.

Increased demand for reliable, high-quality power due to digitalization and electric vehicle adoption.

The increasing digitalization of homes and businesses, plus the early but accelerating adoption of electric vehicles (EVs), is creating a demand for power quality that is defintely higher than in the past. Digital devices are highly sensitive to voltage sags and momentary interruptions. Plus, the shift to EVs, while still small in Brazil, presents a major future load challenge at the distribution level.

COPEL is already integrating this trend into its operational strategy. The company is actively working on the Redes Elétricas Inteligentes (Smart Grid) program, which uses advanced technology to manage the grid more actively and efficiently. This is essential for handling two-way power flow from distributed generation (like rooftop solar) and managing the significant, localized load spikes that EV charging stations create. The company is also leading by example in its own fleet:

• Replace combustion vehicles with electric models.
• Target: Replace 15% of the light fleet vehicles by the end of 2025.

The global trend is clear: EV sales are set to represent one in four cars sold globally in 2025. While Brazil lags behind China and the EU, the utility must prepare the grid now for this inevitable, high-demand future.

Corporate social responsibility (CSR) programs are now strategic, not just compliance-driven.

COPEL's Corporate Social Responsibility (CSR) is no longer a peripheral function; it is a core part of its strategic framework, aligning with Environmental, Social, and Governance (ESG) best practices and the UN's Sustainable Development Goals (SDGs). This strategic focus is designed to manage social license to operate and generate shared value for stakeholders, which is crucial for a newly private utility.

The company has set clear, measurable social targets for the 2025 fiscal year, demonstrating a shift from vague commitments to concrete, auditable performance indicators. For example, the company's target for 2025 is to keep 100% of eligible employees trained in mandatory health and safety courses, directly addressing the social capital of its workforce. Also, the company achieved its ambitious 2025 goal of a 100% renewable energy generation matrix in 2024, which is a powerful social and environmental credential that enhances its reputation with socially conscious investors and customers.

Companhia Paranaense de Energia - COPEL (ELP) - PESTLE Analysis: Technological factors

Smart grid investments are critical for reducing distribution losses and improving reliability (SAIDI/SAIFI).

You're watching COPEL's distribution segment closely, and rightly so. The core technological challenge is getting power from the substation to the customer efficiently. Smart grid deployment-which means advanced metering infrastructure (AMI), automated fault location, isolation, and service restoration (FLISR)-is the defintely answer here. It's not just about better service; it's a financial imperative.

COPEL's investment plan for the distribution business is heavily weighted toward this modernization. Historically, high distribution losses have eaten into margins. The goal is to drive down technical and non-technical losses. Technical losses are the energy dissipated in the wires, and non-technical losses are primarily theft. Smart grids tackle both.

Reliability metrics, System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI), are under constant regulatory pressure from ANEEL, the Brazilian electricity regulator. Improving these means fewer penalties and better customer satisfaction. For the 2025 fiscal year, the push is to accelerate the rollout of smart meters and automated reclosers, especially in rural and high-loss areas. Here's the quick math: every minute shaved off SAIDI saves money and goodwill.

Key Distribution Technology Metric	Strategic Importance for COPEL	2025 Regulatory/Investment Focus
Distribution Losses (%)	Directly impacts operating cost and EBITDA. Lower is better.	Reducing overall losses via AMI and network automation.
SAIDI (System Average Interruption Duration Index)	Regulatory compliance and customer service quality.	Accelerated fault isolation and restoration using FLISR systems.
Smart Meter Penetration Rate	Enables remote reading, loss reduction, and demand-side management.	Targeted rollout in high-density and high-loss zones.

Integration of intermittent renewable sources (wind/solar) stresses the transmission network.

The shift to cleaner energy is a massive opportunity, but it's also a technological headache for the transmission and generation segments. Intermittent sources like wind and solar-which COPEL is heavily invested in-don't offer the stable, predictable output of hydro or thermal plants. This variability puts significant stress on the existing transmission network, requiring sophisticated grid management.

The challenge is balancing supply and demand in real-time across a massive geographic area. This requires advanced Supervisory Control and Data Acquisition (SCADA) systems and Wide Area Monitoring Systems (WAMS). COPEL's transmission investments are focused on upgrading substations and lines to handle bidirectional power flow and rapid voltage fluctuations. This isn't cheap, but it's essential for integrating new capacity without causing blackouts.

• Stabilize grid frequency against renewable variability.
• Upgrade transmission lines for higher capacity and flexibility.
• Implement advanced forecasting models for wind and solar output.

Digitalization of customer service and internal operations to drive cost reduction.

Digitalization isn't a buzzword; it's a core driver of non-controllable cost reduction. COPEL is pushing to move customer interactions-billing, service requests, outage reporting-away from costly call centers and into digital channels like mobile apps and WhatsApp. The goal is a seamless, self-service experience for the customer, and a leaner operating structure for the company.

Internally, the focus is on Enterprise Resource Planning (ERP) system upgrades and the use of robotic process automation (RPA) to handle routine administrative and financial tasks. This increases efficiency and frees up skilled employees for more complex work. Honestly, if a task is repetitive, it should be automated. The savings compound over time, directly boosting the operating margin.

Cybersecurity spending is rising to protect critical infrastructure from sophisticated attacks.

As COPEL's grid becomes smarter and more interconnected, the attack surface for cyber threats grows exponentially. The operational technology (OT) network-the systems that physically control the power generation and distribution-is now directly linked to the information technology (IT) network. This convergence is efficient, but it introduces enormous risk.

Cybersecurity is no longer an IT department cost; it is a critical infrastructure investment. Spending is rising year-over-year to implement deeper network segmentation, continuous threat monitoring, and mandatory employee training. The threat of a successful ransomware or denial-of-service attack on a major utility is a national security concern, not just a business risk. The cost of prevention is always lower than the cost of recovery and regulatory fines.

Next Step: Operations team: Prepare a brief on the current smart meter rollout rate and the projected impact on non-technical losses for the Q4 2025 board meeting.

Companhia Paranaense de Energia - COPEL (ELP) - PESTLE Analysis: Legal factors

ANEEL (National Electric Energy Agency) tariff review cycles dictate revenue for regulated assets.

The core of Companhia Paranaense de Energia's (COPEL) distribution revenue is set by the Brazilian Electricity Regulatory Agency (ANEEL). This regulatory cycle is defintely the most predictable, yet critical, legal factor impacting cash flow. Here's the quick math: on June 17, 2025, ANEEL approved the annual tariff adjustment for Copel Distribuição S.A. (Copel-Dis), which serves approximately 5.23 million consumer units in Paraná.

The overall average tariff effect, effective June 24, 2025, was an increase of just +2.02%. This adjustment reflects a complex calculation that balances the company's operational costs, sectoral charges, and the return of tax credits. The lower-than-expected adjustment for residential customers puts pressure on the company's ability to fully recover costs and invest, but the higher rate for industrial users mitigates some of that risk.

Consumer Class	Tariff Adjustment Effect (Effective June 24, 2025)
Residential (B1)	+1.25%
Low Voltage (Average)	+1.55%
High Voltage (Average)	+2.99%
Overall Average Effect	+2.02%

Concession renewal processes for generation and distribution assets remain a key legal risk.

For a utility, the concession contract is the entire business, so its renewal is the single biggest legal risk. The distribution concession renewal process for companies whose contracts expire between 2025 and 2031 is now regulated by Decree No. 12,068/2024, which affects 62% of the Brazilian distribution market. This decree requires concessionaires to meet strict legal, technical, and economic-financial qualifications, including service continuity indices, at least 36 months before expiration.

The primary legal shift for COPEL, however, is its privatization. The Paraná state government's decision to launch a secondary public offering means the state will retain no less than 15% of total share capital and 10% of voting shares. This transition to a corporation structure means the new private management must now navigate the renewal process under ANEEL's strict performance criteria, removing the implicit state guarantee. For the generation segment, COPEL's 'Copel Day 2025 Presentation' highlights the renewal of Hydroelectric Power Plant (HPP) concessions as a value lever, with a significant amount of revenue from assets of the concession (RAP) expiring by 2035, estimated at R$4.5 billion.

Environmental licensing for new generation and transmission projects is complex and time-consuming.

Historically, the lengthy and uncertain environmental licensing process has been a major bottleneck for new energy projects. But in 2025, the legal landscape is shifting dramatically. The Brazilian government is actively working to speed this up, creating the Chamber of Strategic Activities and Enterprises in October 2025 to accelerate the analysis and approval of licenses for strategic projects.

Also, the approval of a bill in July 2025 that allows for a License by Adhesion and Commitment (LAC)-essentially a form of self-licensing for many projects-could drastically reduce the legal timeline for new generation and transmission assets. This presents both an opportunity for faster project deployment and a potential legal/reputational risk if self-licensed projects lead to unforeseen environmental issues. COPEL is already demonstrating a focus on compliance, with approximately 77.8% of its generation plants holding ISO 14001 certification. This strong internal framework is a major advantage in the face of simplified, but more scrutinised, external licensing rules.

New market rules for free energy consumers are expanding the competitive landscape.

The expansion of the free energy market (Ambiente de Contratação Livre or ACL) is a major legal change that directly impacts Copel-Dis's captive customer base. The market is already growing fast; in 2024, 25,966 consumer units migrated to the free market, and the trend continued with a 46% increase in the first two months of 2025 compared to the previous year.

Provisional Measure No. 1,300/2025 and related legislation are expanding this access to low-voltage consumers, a segment traditionally monopolized by distributors like COPEL. This is a direct competitive threat.

• Low-Voltage Industrial/Commercial Consumers: Will be able to choose their supplier starting August 1, 2026.
• Other Low-Voltage Consumers (e.g., Residential): Will gain the right to choose their supplier starting December 1, 2027.

This means Copel-Dis must prepare to compete for its entire customer base within the next two years. Plus, the legal framework is under pressure from the massive growth of the Energy Development Account (CDE), a fund subsidizing public policies, which is expected to reach approximately R$50 billion (US$9.3 billion) in 2025, a cost ultimately borne by consumers and factored into tariff reviews.

Companhia Paranaense de Energia - COPEL (ELP) - PESTLE Analysis: Environmental factors

Climate change risk to hydro generation capacity due to shifting rainfall patterns in the South region.

You need to be a realist about the core of Companhia Paranaense de Energia's business: it is still heavily reliant on hydroelectric power (hydro), and that means climate risk is a direct financial risk. The company has already achieved a 100% renewable generation matrix in 2024, ahead of its 2025 target, which is a huge win for its carbon footprint.

But the physical risk from climate change remains, especially with shifting rainfall patterns in the South region of Brazil where much of its capacity is located. While global models project that the hydropower capacity factor for Southern South America is likely to decrease, some specific regional estimates for the South of Brazil suggest river flows might actually increase, which creates a different kind of operational challenge-managing flood risk and reservoir overflow, not just drought. Honestly, the real risk is the increased volatility and the frequency of extreme events, making energy generation forecasting defintely harder and potentially forcing higher-cost energy purchases in the spot market to compensate for hydro shortfalls.

ESG (Environmental, Social, and Governance) performance is a major factor for attracting global capital.

ESG performance is no longer a soft metric; it's a hard requirement for attracting the large pools of global capital, especially from institutions like BlackRock, who prioritize sustainability. Companhia Paranaense de Energia's strong ratings reflect its commitment and make its stock, ELP, highly investable in this context. The company is actively monitored by major rating agencies, giving investors clear benchmarks.

Here's the quick look at where the company stands on key ESG ratings:

• FTSE4Good Index Series: ESG Rating score of 3.7 (out of 5).
• MSCI ESG Rating: A (on a scale from CCC to AAA).
• ISS ESG Classification: C.

A solid 'A' from MSCI is a strong signal. The focus now shifts to maintaining and improving these scores, particularly in the face of transition risks, which are the financial risks associated with moving to a low-carbon economy.

Compliance costs for new environmental standards and waste management are increasing.

Compliance costs are a non-negotiable part of the energy business, and they are increasing as regulatory standards tighten, particularly around waste management and water use. Companhia Paranaense de Energia manages this via its Eco-efficiency Program, which aims to reduce the consumption of natural resources and waste.

A large portion of the company's capital expenditure is dedicated to maintaining operational excellence and environmental standards. For the 2025 fiscal year, the company has a massive investment plan totaling R\$ 3.029 billion (approximately $531.4 million), which funds everything from network modernization to environmental programs. What this estimate hides is the ongoing operational cost of compliance, but the scale of the investment shows management is prioritizing asset health. For instance, 77.8% of the company's hydroelectric plants are already certified with ISO 14001, the international standard for Environmental Management Systems, which requires continuous investment in waste and effluent management processes.

Commitment to reducing Greenhouse Gas (GHG) emissions across the generation portfolio.

Companhia Paranaense de Energia has set a clear, aggressive target: achieving carbon neutrality for Scope 1 Greenhouse Gas (GHG) emissions by 2030. This is a major commitment, and the divestment from thermal assets has already helped significantly.

The strategic actions for 2025 focus on operational decarbonization, even with the generation portfolio already being 100% renewable. This is where the company's efforts to meet the Science-Based Targets initiative (SBTi) principles become visible:

• Fleet Decarbonization: The 2025 target is to replace 15% of the light vehicle fleet with electric vehicles.
• Eco-efficiency and Scope 2 Emissions: The 2025 target is for at least 30% of the company's energy consumption to come from compensation and energy certified with I-REC (International Renewable Energy Certificates).

The table below summarizes the key environmental metrics and 2025 targets, showing a clear roadmap for mitigation and adaptation.

Environmental Metric	Goal/Status (as of 2025)	Value/Percentage	Source/Impact
Generation Matrix Renewability	Status Achieved (Ahead of 2025 Target)	100% Renewable	Mitigates Scope 1 GHG emissions from generation.
Scope 1 GHG Emissions	Carbon Neutrality Target	By 2030	Aligns with Paris Agreement and SBTi principles.
Light Vehicle Fleet Electrification	2025 Replacement Target	15%	Reduces direct (Scope 1) emissions from operations.
I-REC Certified Energy Consumption	2025 Target	At least 30%	Addresses indirect (Scope 2) emissions.
Hydro Plant Environmental Certification	ISO 14001 Certified Plants	77.8%	Demonstrates strong environmental management and compliance.

The next step is for the Strategy team to model the financial impact of a 20% reduction in average hydro capacity factor due to climate volatility by 2030, and then compare that to the cost of accelerating wind and solar investments.