Trafigura has received a licence from Brazil’s National Electric Energy Agency to trade wholesale power in Brazil, marking the company’s entry into Latin America’s largest and most developed power market.

With the licence now granted, Trafigura’s Brazil power desk is positioned to participate actively in the country’s electricity market. The desk will engage in power supply and trading activities, procuring and supplying power purchase agreements (PPAs), and selectively allocating capital to power-related assets.

Trafigura is already an active participant in European and US power markets. The decision to enter Brazil followed a structured assessment of expansion opportunities across multiple jurisdictions. Brazil was selected on the basis of its market size, structural and regulatory characteristics, and its strong counterparty base.

Brazil is the sixth-largest power market in the world and the most mature in the Latin American region, having undergone significant structural reform over recent decades. Approximately two-thirds of Brazil’s electricity generation is hydropower, giving the country one of the highest rates of renewable penetration globally, while also tying power prices closely to weather patterns and introducing significant seasonal volatility and intermittency.

Marc Erb, Head of Brazil Power & Gas Trading, Trafigura, commented: “Brazil is the natural entry point for Trafigura into Latin American power trading. It has a well-established regulatory framework, a large counterparty base, and a market structure that rewards the expertise Trafigura has built in its global power business. We have established a strong local team and, with our balance sheet strength and access to finance, we are well-positioned to grow our presence here.”

The business will be led from Rio de Janeiro, where Trafigura has assembled a team predominantly comprising local hires. Back-office operations will be supported from Montevideo, Uruguay.