CPFL Energias RenováveisMiguel Abdalla Saad

CEO of CPFL Renováveis

Disclaimer

This presentation may contain statements that represent expectations about future events or results according to Brazilian and international securities regulators. These statements are based on certain assumptions and analysis made by the Company pursuant to its experience and the economic environment and market conditions and expected future events, many of which are beyond the Company's control. Important factors that could lead to significant differences between actual results and expectations about future events or results include the Company's business strategy. Brazilian and international economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial market conditions, uncertainty regarding the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the Company's actual results may differ materially from those indicated or implied in forward-looking statements about future events or results.

The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation.

This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the Company's business.

These statements may include projections of economic growth, demand, energy supply, as well as information about its competitive position, the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the estimates and assumptions on which these statements are based.

Agenda

Renewable Energy in Brazil

CPFL Renováveis

Operational Performance

PM 579

Agenda

Renewable Energy in Brazil

CPFL Renováveis

Operational Performance

PM 579

Renewable Energy with a high potential for growth

Source: ANEEL; PDE 2021 and the Company; 1) Projected for 2021

Forecast for growth in renewable energy in Brazil at a CAGR of 8.5%, from 13.7 GW in 2011 to 36.1 GW in 2021, in a highly fragmented market

Potential to be developed in Brazil Highly Fragmented Market

Market Share of Renewable Energy in Brazil based on energy (18 GW)

Evolution in Installed Capacityby Source | GW

2011 2021

Hydro Natural gas Others Renewables

182

116

CAGR = +4.6%

The Renewable Energy segment still represents a small share (~12% of domestic Generation capacity)

Distribution of installed capacity by energy source and region, 2011 (%)

Others(2)

8.9 GWNatural Gas10.2 GW

Hydro(1)

83.6 GW

Renewables13.7 GW

SHPP4.6 GW

Biomass7.8 GW

Wind1.4 GW

Although wind energy represents only 10% of the installed capacity of renewable sources, this source will reach 9.4 GW in 2016 – considering the projects contracted

Source: Ten Year Energy Plan, PDE 2021.(1) Hydro includes energy imported from Itaipu. (2) Others: Uranium, coal, fuel oil, diesel oil and process gas

1.500kW

1.800kW80m

3.000kW

100m

70m

750kW50m

30m300kW

75kW17m

1980 -1990

1990 -1995

1995 -2000

2000 -2005

2000 -2005

20100

20

40

60

80

100

120

140

160

180

Rotor Diameter (m) Rating (kW)

Altura(m

)Brazil has exceptional wind conditions in addition to benefiting from technological change

Differentiated position for wind energy in Brazil due to exceptional natural wind conditions combined with recent advances in technology

Area89%

Area95%

Area99%

Wind characteristics in Brazil are better suited for energy generation

Significant technological advances in recent years

+ +

Comparison of load factors for wind farms in Brazil and the world

The combination of superior tailor-made technology for a country with favorable wind conditions allows Brazil to present the largest capacity factors in the world

1) Rate of efficiency with smaller turbines. These models do not exist nor are they being built in Brazil. Net efficiency rate – disconsiders aerodynamic and electrical losses and unavailability; 2) Simulation by CPFL Renováveis based on wind certifications. Net efficiency rate – disconsiders aerodynamic and electrical losses and unavailability.

Power curve by technology and by geography

Case StudySIIF Wind Farms

24% - 30% 25% - 36% 33.8%1Older Equip. :

37.0% 42.2% 49.2% (2009-2011) | 53.2% (2011-2012)Current Equip.:

Load factors

39.24% 39.61%51.30%²

Positive factors favor renewable energy sources

Source: Company; 1) Taxes on earnings

The renewable energy segment in Brazil enjoys benefits that maximize returns and are sustainable in the long term

Agenda

Renewable energy in Brazil

CPFL Renováveis

Operational Performance

PM 579

Overview of CPFL Renováveis

1) Includes the completion of 7 (seven) wind farms in Santa Clara Complex, a total of 188 MW that are already capable of generating energy and receiving revenues related to the contracted at the Reserve Energy Auction (LER) held in 2009 – dependent of the completion of the construction of the ICG (Installation of the Private Interest Transmission Line for Generation under Shared Connection).

2) Highly reliable projects are those that are ready to sell energy and have a prior environmental license and concluded technical studies. Probable projects are those that will be ready to sell energy within the next 2 – 3 years and have received technical approval from ANEEL. Possible projects are those that will be ready to sell energy within 4 – 5 years and have preliminary study approval from ANEEL.

Pipeline(2) TotalContracted Installed Capacity (MW)

In operation1 2013 2015 Assets with PPA

Highly Reliable Probably Possible Total

SHPP

Wind

Biomass

Solar

# 1 in Renewable Energy in Brazil with 1.7 GW of capacity contracted

Capability of developing 3.0 GW in high quality pipeline

Track Record

1) The difference between total contracted energy of 1,735 MW and 1,611 MW (under construction + acquisitions) is due to some SHPPs previously owned by CPFL Energia

Leadership with a Diversified, High Quality Portfolio

Source: Company and BIG – Generation Information Bank – ANEEL; 1) Will be operational by the end of 2015

In operation:

Hydro

Wind

Biomass

Under construction:

Hydro

Wind

Biomass

Wind Energy PortfolioGood location because of the quality of the winds

SHPP PortfolioAbundant water

resources

Biomass Portfolio close to centers of production of sugarcane

Wind potential (Northeast and South Regions)

Solar

Geographic diversification of Sources Large Scale and the Only Player with diversified Sources in the Renewable Energy Sector1Installed Capacity

Total: 1,735 MW

SHPP

Wind

Biomass

Solar

SHPP

Wind

Biomass

Solar

SHPP potential (Southeast and Center-West Regions)

Ipê Pedra Santa Clara

• Source: Biomass

• Installed Capacity:

25MW

• Contracted Energy:

8.2MW

• Operation: May

2012

• Source: Biomass

• Installed Capacity:

70MW

• Contracted Energy:

24.4MW

• Operation: May 2012

• Source: Wind

• Installed Capacity:

188MW

• Contracted Energy:

75.8MW

• Operation: July

2012(1)

In 2012 CPFL Renováveis concluded the construction of 4 assets, and 284 MW of installed capacity in

operation were added to the portfolio

(1) These facilities are ready to operate and generate energy but are waiting for the construction of the ICG to be concluded before beginning operations. The Company is receiving the revenues related to the contracted energy in the Reserve Energy Auction (LER) of 2009

(2) PPA from Jan/2013 through Dec/2037

Projects concluded in 2012

• Source: Solar

• Installed Capacity:

1.1MW

• Contracted Energy:

0.19MW (2)

• Operation:

November 2012

Tanquinho

Bons VentosComplex

Atlântica Complex

Ester Power Plant

• Source: Wind

• In Operation

• Installed Capacity: 157.5

MW

• Contracted Energy: 62.8

MW

• Closing of the Operation:

June/2012

• Source: Wind

• Under Construction

• Installed Capacity: 120

MW

• Contracted Energy: 52.7

MW

• Closing of the Operation:

March/2012

318 MW in projects under construction or in operation were acquired in 2012

Acquisitions concluded in 2012

• Source: Biomass

• In Operation

• Installed Capacity: 40 MW

• Contracted Energy: 7.0

MW

• Closing of the Operation:

October/2012

Other Assets in Operation

Ninho da Águia – MG (10 MW)

Americana – SP (30 MW)

Baia Formosa– RN (40 MW) Icaraizinho– CE (55 MW)

Bio Buriti – SP (50 MW) Paracuru – CE (25 MW)

Biomass WindSHPP

� Commercial start up in 1H13 | 120 MW/47 MW average

Projects under construction

Alvorada TPP

Coopcana TPP

Salto Góes SPP

(e) (MW) (MWavg) (e)

1Q13 20 11.1BNDES funding(63% debt /37% equity)

Alternative Sources Auction

Aug/10

2Q13 50 18.0

BNDES funding(approved, in contracting process)

Free Market

2Q13 50 18.0

BNDES funding(approved, in contracting process)

Free Market

49% concluded

46% concluded

96% concluded

� Commercial start up in 2H13 | 228 MW/105 MW average

Projects Under Construction (Cont.)

Macacos I wind farm1

Atlântica wind farm2

(e) (MW) (MWavg) (e)

3Q13 78,2 37.5BNDES funding(under review)

AlternativeSources Auction

Aug/10

3Q13 30 15.0BNDES funding(under review)

Reserve Auction Aug/10

3Q13 120 52.7BNDES funding(under review)

Alternative Sources Auction

2010

23% concluded

9% concluded

37% concluded

Campo dos Ventos II

� Commercial start-up in 2015 | 254 MW/129 MW average

1) Campo dos Ventos I, III, V 2) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula, São Domingos and Ventos de São Martinho

Projects Under Construction (Cont.)

(e) (MW) (MWavg) (e)

1Q15 82.0 40.2BNDES funding(under review)

Free market

3Q15 172.0 89.0BNDES funding(under review)

Free market

9% concluded

8% concluded

Agenda

Renewable Energy in Brazil

CPFL Renováveis

Operational Performance

PM 579

Performance of CPFL Renováveis’ Generation of Wind Energy

Source: Company; (1) Last 12 months beginning Nov/11

CPFL Renováveis already has a history of high efficiency.Real output over the last 12 months is greater than the certified load factor.

SiiF

wind farm

sBonsVentoswind farm

s

Certified Load Factor Real UDM Load Factor1 Rate of Efficiency Consolidated UDM Real Load Factor 1

Performance of Hydro Power Generation of CPFL Renováveis

(1) Last 12 months beginning Nov/11

2012 recorded rainfall levels that were much lower than the historical average. Nevertheless, our SHPPs were part of the MRE, mitigating the impact.

Physical Guarantee (MWavg) Generated energy (MWavg)1 Efficiency

Expected Nov - Dec/12 (MWavg)

September/2011

October/2011

May/2012

May/2012

October/2012 (incorporation)

• Adjustments in the steam production at Bio Pedra TPP at the beginning of the harvest; and

• The drought in the Northeast Region, which affected the production of bagasse at Bio Formosa.

In both cases the effects were mitigated: in Bio Pedra with a lower capex, and in Baia Formosa through contractual protection.

Performance of Biomass Generation of CPFL Renováveis

(1) Does not include Ester Plant (2) Accumulated through October/2012 (3) Estimated through December 31, 2012

Physical guarantee (MWmed)

Generated Energy (MWavg)2

Efficiency Rate

Thermoelectric power plants powered by biomass have a total installed capacity of 270 MW in operation

59.1(3)

Agenda

Renewable Energy in Brazil

CPFL Renováveis

Operational Performance

PM 579

• Our first concessions expire in 2027 (58.6 MW average)

• Authorizations expire between 2029 and 2046

• Reductions in the price of re-contracted energy (which does not affect

current PPAs)

• Uncertainties about the renewal of concessions and authorizations

Impact of PM 579 on CPFL Renováveis

Provisional Measure 579, published by the Federal Government on

September 11, 2012, will not bring significant impact on CPFL Renováveis

CPFL Energias RenováveisMiguel Abdalla Saad

CEO of CPFL Renováveis