Trafigura enters Brazilian power market with $150m PPA deal

Global commodity trading house Trafigura has completed its first transaction in the Brazilian power market, marking its commercial entry into Latin America's largest electricity market through a long-term power purchase agreement with CGN Brazil Energy. According to a company announcement released on 22 July 2026, Trafigura assumed a contract valued at $150 million to purchase power from CGN, taking over the position previously held by domestic firm Grupo Bolt.

Under the terms of the deal, Trafigura will market and sell the electricity secured under the agreement to industrial and commercial customers operating within Brazil's deregulated electricity market, known as the Ambiente de Contratação Livre (ACL). The ACL allows large power consumers and electricity generators to negotiate energy delivery contracts directly outside the nation's regulated tariff framework. Trafigura noted that the free-market segment has expanded rapidly in Brazil, driven by broad market liberalisation and the ongoing expansion of renewable energy capacity.

The execution of the power purchase agreement follows Trafigura's receipt of a wholesale power trading licence approval in Brazil earlier this year. Based in Rio de Janeiro, Trafigura's domestic power and gas trading desk operates within the world's sixth-largest electricity market. In its press statement, the commodity trader highlighted that hydropower supplies roughly two-thirds of Brazil's total electricity generation, giving the country one of the highest proportions of renewable power in the world.

Commenting on the deal, Marc Erb, Head of Brazil Power & Gas Trading at Trafigura, stated that completing the transaction represents a significant milestone for the firm as it seeks to build its presence as an intermediary, risk manager, and long-term commercial partner across the Brazilian power market. CGN Brasil Energia Commercial Director Ricardo Daelli said the entry of a global trading house brings added liquidity and market experience, while Bolt Group Chief Executive Officer Gustavo Ayala noted that the deal demonstrates the maturity of the country's free energy market in attracting major international market players.