Strategy

Connected to our superior purpose “Connections that Inspire” and under the vision “Future Inspired by Sustainable Value”, our strategy focuses on the long-term continuity of business, in line with maximizing value creation for our stakeholders. In line with this context, it comprises three strategic vectors and pillars that guide the conduct of our activities.

• Generate shareholder value – grow in the transmission market, through participation in auctions (greenfield), mergers and acquisitions (brownfield) and investments in strengthening and improving assets, always maintaining financial discipline and the appropriate criteria for profitability and risks.
• Create positive social and environmental impacts – generate value for society and the planet through high-impact socio-environmental projects and actions to reduce and mitigate the impacts of climate change.
• Ensuring corporate longevity – investing in new energy businesses and in the capacity for innovation and entrepreneurship, ensuring the continuity of our activities. Build high-performance teams and strategic partners, with a focus on improving competitiveness and developing capabilities.

The 2030 Strategy is supported by four pillars that guide the Company's daily actions and decisions, as well as the way in which ISA ENERGIA BRASIL relates to all its stakeholders.

Availability of electricity is essential for human life and hence ISA ENERGIA BRASIL is driven by a strategy that prioritizes its solid growth while creating positive environmental and social impacts and achieving consistent results to ensure its longevity.

In this context, the transition to a clean energy matrix with more renewable sources is one of the most urgent needs for sustainable development. The transformation of the electricity sector is crucial for reducing greenhouse gas emissions and mitigating the impacts of climate change. Furthermore, as an adaptation measure, it is necessary to ensure a robust electrical infrastructure that is resilient to extreme climate events, which could become more frequent. As such, the Company always tries to increase its competitiveness in order to win new businesses, backed by innovation, new technologies and the continuous improvement of its operational efficiency.

The Energy Research Company (“EPE”), linked to the Ministry of Mines and Energy, estimates that by 2026, approximately 50% of Brazil’s installed capacity will come from wind farms and solar power plants located in the Northeastern region. On the other hand, the states in the Southeastern region consume nearly 50% of the electricity generated in the country annually. In view of this rapid expansion and, considering the difference in the periods of construction of small renewable plants (up to 3 years) and transmission lines (around 5 years), EPE estimates that transmission auctions in 2023 will have investments exceeding R$50 billion, which is almost 3 times higher than in 2022 and is one of the highest in the 21^st century, accelerating the transmission of this energy and ensuring the security of supply for the electricity sector. The plan for 2023 includes a 2-terminal device that will connect Graça Aranha (Maranhão) to Goiás by means of a line spanning more than 1,000 km and other projects connecting the Northern, Northeastern, Midwestern and Southeastern regions.

That’s why, investments in energy transmission assets that enable this greater integration of renewable sources is fundamental to accelerate energy transition and increase the competitiveness of the electricity sector. As such, it can be affirmed that the energy transmission sector and, consequently, ISA ENERGIA BRASIL are at the heart of energy transition.

He Company has the technical capacity and experience to participate in auctions and, besides preparing for them through prior studies, projects, quotations and partnerships, it also has stringent requirements in place for the funds that must be allocated to the project and guarantee a minimum level of adequate returns for all the lots in the auction in which the company participates.

Also, the Company is obligated to invest in retrofitting projects, which are concentrated in renewed contracts, as well as the energy transmission contract with the state of São Paulo (“Contract 059”) of ISA ENERGIA BRASIL. These investments not only help reduce operation and maintenance (“O&M”) costs upon renewal of the asset, but are also remunerated.