Renova Energia SA : Payment of Brasil PCH

RENOVA ENERGIA S.A.

CNPJ/MF Nº 08.534.605/0001-74

NIRE 35.300.358.295

MARKET ANNOUNCEMENT

As stated in the Material Announcements published on August 8, 2013 and October 28, 2013, and the Investment Agreement of August 8, 2013 between the Company ("Renova"), RR Participações S.A. ("RR Participações"), Light Energia S.A. ("Light Energia"), Cemig Geração e Transmissão S.A. ("Cemig GT") and Chipley Participações S.A. ("Chipley"), and, further, as approved by the meeting of the Board of Directors of Renova on February 12, 2014, Renova hereby reports to its stockholders and the market as follows:

 On today's date, Chipley made payment for the acquisition of a 51% equity interest in Brasil PCH.

 The Board of Directors of Renova will approve a capital increase in the amount of up to R$ 3,236.0 million, at an issue price of R$ 16.2266 per share (equivalent to R$ 48.6798 per Unit). As established in the Investment Agreement, the amount of this capital increase will undergo monetary updating, by the CDI rate, from December 31, 2012 to the date of its approval by the Company's Board of Directors.

 Under the Investment Agreement, the rights of first refusal to participate in the increase in the capital of Renova that relate to the shares within the controlling block of Renova owned by the shareholders RR Participações and Light Energia are assigned to Cemig GT. Cemig GT has committed to subscription of shares in Renova in a total amount of R$ 1,414.7 million. Of that total, R$ 739.9 million was used to pay the acquisition of Brasil PCH, in the way determined by the Investment Agreement.

Under the Investment Agreement, such subscription of shares may be carried out either by Cemig GT
and/or by an equity investment fund, and/or by a special-purpose company controlled by such a fund.
To keep stockholders and investors duly informed, the market will be promptly advised at the appropriate time of additional details and updates on each step of the transaction.
This Material Announcement is available on the websites of Renova (www.renovaenergia.com.br/ri/), BM&FBovespa (www.bmfbovespa.com.br), and the CVM (www.cvm.gov.br).
São Paulo, February 14, 2014

Pedro Villas Boas Pileggi

Chief Financial and Investor Relations Officer

Renova Energia S.A. (RNEW11) operates in generation of electricity from renewable sources, focused on wind farms, Small Hydro Plants (PCHs) and solar energy. It was the first BM&FBovespa-listed company dedicated to generation from alternative electricity sources. Renova's renewable-source generation projects are

www.renovaenergia.com.br

prospected, developed and implemented by its own multidisciplinary team of highly experienced electricity sector professionals - the result of continuous investment by Renova over its 12 years of operation. Renova is also Brazil's largest operator in renewable electricity sources in terms of capacity, with 1,217.4

placed to date in Brazil's Regulated Market, and 545.7MW in its Free Market. It also controls Small Hydro Plants (SHPs) with total installed capacity of 190,2 MW.

Any statements on the outlook for the business, estimates for operational or financial results, or the growth outlook for Renova Energia, expressed in this report are only projections and as such are based exclusively on the expectations of Renova Energia's management under the Company's business plan. Future estimates are based on Renova's present knowledge, assumptions and expectations, based on the information currently available to it. These assumptions and expectations may change as a result of a range of possible events or factors, of some of which the Company may not at present be fully aware.

INVESTOR RELATIONS

Pedro Pileggi - Chief Finance and Investor Relations Officer

Flávia Carvalho - Investor Relations Manager Fernanda Kitamura - Investor Relations Analyst [e-mail]

([phone]/1174

MEDIA OFFICE

Inês Castelo - [e-mail]

([phone]

www.renovaenergia.com.br