Renova Energia SA : Commercialization in the Energy Reserve Auction

RENOVA ENERGIA S.A.

CNPJ/MF Nº 08.534.605/0001-74

NIRE 35.300.358.295

Material Fact Renova Energia S.A. (RNEW11) ("Company"), the first company operating solely in power generation from renewable sources listed on the Brazilian stock exchange (BM&FBOVESPA), pursuant to and for purposes of compliance with CVM Instruction 358/02, informs its shareholders and the market in general that the Company commercialized in the reserve auction nº 05/2013 ("LER 2013") a guaranteed energy of 73.7 average MW to be generated by nine wind farms located in the state of Bahia, equivalent to 159.0

MW of installed capacity.

The contracts in connection with this commercialization shall be celebrated with Electricity Wholesale

Chamber (CCEE). The contracts term will be of 20 years, with the beginning of energy supply on September

2015. The units were sold at an average price of R$ 106.02 per MWh, and will be readjusted according to the Consumer Price Index - IPCA as of September 2013.

Considering the commercialization in the LER 2013, the Company amounts a total contracted installed capacity of 1,449.4 MW, 1,407.6 of wind energy and 41.8 in small hydropowers, commercialized in both, the regulated and the free market.

São Paulo, August 23, 2013.

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 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 861.9MW 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 41.8MW.

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]

MEDIA OFFICE

Inês Castelo - [e-mail]

([phone]

www.renovaenergia.com.br