ISA Energia questions the guidelines of the capacity reserve auction for batteries, arguing that revenue-sharing requirements could deter transmission operators and harm the competition.
The upcoming capacity reserve auction (LRCap) for batteries, scheduled for December, has raised strategic concerns for the transmission sector.
According to ISA Energia, the current regulatory design imposes barriers that discourage transmission companies from entering the contest, mainly because it requires any gains to be shared in favor of tariff moderation.
For the company’s Director of Finance and Investor Relations, Silvia Wada, the scenario is contradictory.
While the operational model of energy storage systems shares similarities with the expertise of transmission operators—based on building and maintaining asset availability—the rules imposed by the Federal Prosecutor’s Office in conjunction with Aneel create a direct economic disincentive for these players.
Uncertainties and Regulatory Risks
Beyond revenue restrictions, the company points to normative instability involving the allocation of the fee responsible for the auction’s remuneration.
The concern is that ongoing legislative changes in Congress could alter the payer base, creating a legal uncertainty environment that directly impacts investors’ risk analysis.
Silvia Wada stated:
We believe it makes no sense, considering that this practically makes it impossible for this type of player to participate, reducing competition.
The statement was made during the third‑quarter 2026 earnings conference call.
The executive emphasized that, even after the notice is published, the company remains cautious about its participation in the auction.
The sector awaits decisions on a possible reversal of the law that currently assigns the fee burden to generators, which could radically change the financial viability of battery projects.
Perspectives and Regulatory Agenda
Alongside the challenges in LRCap, ISA Energia is already eyeing the 2027 agenda.
The company, in partnership with Abrate (Brazilian Association of Electric Transmission Companies), will focus on revising the parameters of the WACC (regulatory remuneration rate on investments).
The current methodology, established in 2018, must undergo a comprehensive update within the ProRet (Tariff Review Procedures) cycles.
In the financial arena, the company maintains a growth trajectory, supported by new assets such as the Serra Dourada and Itatiaia projects.
With a regulatory net profit of R$ 1.9 billion recorded in the third quarter of 2026, ISA Energia projects a gradual increase in leverage to 4× by 2028, a level it considers healthy for the predictability profile of its business model.
The future, however, remains contingent on the evolution of battery market regulation and the next steps of national energy policy.