Brazil's Urca Trading enters power market

Spanish Market: Electricity
23/08/23

Brazilian biomethane producer and trader Urca Trading will invest R5mn ($1mn) to start operations in the power market, focusing on medium- and high-voltage consumers in the liberalized market.

By January 2024, all high-voltage consumers in Brazil will be able to purchase power from generators or traders. Only larger industrial consumers can purchase power with power traders other than their local distributors.

The company expects to reach around 2,000 new clients by the end of 2024, focusing on consumers with power tabs that total at least R10,000/month.

Urca's clients will receive renewable energy certificates (I-RECs) for each MW received to certify the the power is renewable, a market that is still voluntary in Brazil.

Urca Trading's controller Urca Energia Group operates in energy trading in the short-, medium- and long-term and has sold more than 3,600 GWh since 2018. The company also invests in biomethane production through subsidiary Gas Verde, as well as natural gas through Urca Gas.

By Flávia Pierry

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

18/09/26

Territorial risks cloud Mexico’s Centauro expansion

Mexico City, 18 September (Argus) — Territorial risks threaten to delay the second phase of Mexico's Centauro del Norte natural gas pipeline, designed to bring cheaper US Permian basin gas to northwestern power plants, while disparate metrics obscure its rate of progress. Grupo Carso is building the $1.43bn, approximately 442km (275-mile) pipeline across Baja California and Sonora states. The project will supply two of state-owned utility CFE's newest combined-cycle power plants and add generation capacity in a region facing grid constraints. The 72km first phase runs from an interconnection with Sempra's Rosarito pipeline near Mexicali to San Luis Rio Colorado, connecting the new plants to existing infrastructure. Mexicali's 641MW Gonzalez Ortega plant began commercial operations in May. CFE is also developing the 648MW San Luis Rio Colorado plant. Construction of the 365km second phase is not scheduled to begin until early 2027, with completion targeted for December 2028, but market sources doubt that schedule can be met. The expansion would receive Permian gas primarily through the Samalayuca-Sasabe pipeline system and northern cross-border hubs connected to west Texas supplies. The second phase presents territorial risks that engineering alone cannot resolve, Carlos Alberto Torres, a former official at state-owned Pemex, told Argus . These include its proximity to the El Pinacate y Gran Desierto de Altar biosphere reserve, consultations with Tohono O'odham communities along the Sonoyta-Caborca corridor, rights of way across agricultural land near Caborca and Altar, and security conditions affecting workers and contractors. None has been confirmed as currently blocking the project, Torres said, but each could delay construction. Uncertainty has been compounded by the different scopes used to report progress. The energy ministry's 15-year hydrocarbons development plan, released on 7 September, put overall project progress at 7.12pc. Carso filings, meanwhile, showed progress rising from 47pc at the end of the first quarter to 77pc as of 30 June, likely referring only to the first phase. Those figures measure execution of a $47.85mn contract held by Carso subsidiary CICSA rather than the entire project. Carso's filings also vary in describing Centauro as either a two- or three-phase project. Carso has not responded to Argus requests for clarification, while the energy ministry's plan provides little detail beyond funding. "The question is not whether there is money, it is whether we are budgeting for territorial and regulatory risk with the same rigor as capex," Torres said. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Hungary ready to join European power balancing markets

18/09/26

Hungary ready to join European power balancing markets

London, 18 September (Argus) — All technical, market and regulatory preparations are in place for Hungary to join European automatic and manual frequency restoration reserve platforms Picasso and Mari on 1 October, transmission system operator (TSO) Mavir said on Friday. Integrating Hungary into Picasso and Mari is unlikely to affect wholesale electricity prices directly, market participants told Argus . But it could affect the volatility of imbalance prices and revenue for Hungarian battery energy storage system (Bess) operators. The cost of imbalance reflects the cost of matching power generation and demand in real time. Imbalance costs are incurred by producers and consumers when their demand or production is unexpectedly lower or higher than scheduled. Currently, Hungarian imbalance prices are set by bids from domestic balancing market participants only. TSOs participating in regional balancing systems input bids from their market and an algorithm activates balancing capacity — upward and downward revisions in demand and generation. The aim is to balance the system most efficiently across all markets, taking into account transmission capacity constraints. In the case of Picasso, the algorithm determines the cross-border marginal price (CBMP) every four seconds, which TSOs use to derive the 15-minute imbalance settlement costs they charge to users. Since neighbouring Slovenia joined Picasso in July, "imbalance prices are becoming quite hard to predict", market participants told Argus . The Slovenian imbalance settlement price exceeded €13,000/MWh during a region-wide heatwave on 7 July, according to market operator Borzen. In this case, a single settlement period could "pose a material financial threat" to smaller producers, especially "unstable" weather-dependent renewables. But TSOs have different methodologies to derive the imbalance settlement prices from the CBMP. Mavir has opted for a volume-weighted average rather than marginal pricing, to avoid a "four-second spike" setting the 15-minute settlement, market participants told Argus . Opening the balancing market to competition Hungary's entry into Picasso could expose the country's Bess operators to greater competition for balancing market revenue. Hungarian batteries will have to bid against Slovak Bess, which can bid lower as they pay lower grid fees, market participants told Argus . But potentially lower revenue from the balancing market after joining Picasso is unlikely to threaten Bess buildout. Developers are aware that the market will inevitably become saturated as more and more batteries come on line, market participants told Argus . Hungary has one of the most volatile intraday markets in the EU, making it an attractive market for Bess, which can profit from intra-day arbitrages. Hungary had 984MW of Bess capacity installed at the beginning of September, up from just 146MW at the end of last year. Operational Picasso members include most of western and central Europe including neighbouring Slovenia, Austria and Slovakia. Romania and Croatia are set to join in the second quarter of 2027, according to the latest Picasso ascension roadmap, published in February. By Jessamy Guest Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

European Commission approves €44mn grant for LV-LT wind

17/09/26

European Commission approves €44mn grant for LV-LT wind

London, 17 September (Argus) — The European Commission has approved a €44.4mn ($51mn) grant to finance the 210MW Utilitas Eleja-Joniski wind park on the Latvian-Lithuanian border. The farm will comprise 30 wind turbines with a capacity of up to 210MW, generating up to 680 GWh/yr. Baltic firm Utilitas Wind aims to commission the project by 28 February 2029, according to EU transparency platform CB RES. The wind farm has already passed through the planning stages but has not yet started applying for permits. The funds will support the first implementation phase of the project, including construction of "balance-of-plant infrastructure" in Latvia, grid connection works, and installation of wind turbines in Latvia, the commission said. Utilitas Wind aims to connect the turbines to both the Latvian and Lithuanian grids. By Lucas Waelbroeck Boix Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Pa. study finds PJM short on generation

16/09/26

Pa. study finds PJM short on generation

Houston, 16 September (Argus) — Grid operator PJM Interconnection is projected to miss its reliability planning standard through 2030 even with the new power generation it expects to add, because data-center driven electricity demand is growing faster than supply, according to a Pennsylvania study. The study's base-case outlook, which uses PJM's 2026 load forecast and assumes resource supply gradually improves through 2040, found the grid operator fails to meet its reliability standard from 2027-30 in the absence of new policies. The Pennsylvania Public Utility Commission (PUC) said it commissioned the study to understand how rapid load growth, generator retirements and delays in new resource development could affect reliability across Pennsylvania and the broader PJM region, which covers 13 states the District of Columbia, making it the biggest grid operator in the US. "Across all scenarios, new in-state generation additions do not keep pace with the growth of in-state load," the report said. The system remains "tightly constrained" even as new resources are added, with the model selecting most generation technologies up to their assumed build limits, the report said. Under the study's base-case scenario, PJM's gas combined-cycle fleet increases to 71.8GW in 2030 from 61.4GW in 2025, while solar capacity rises to 56.1GW from 14.7GW. Onshore wind capacity grows to 21GW from 11GW and battery storage expands to 7.9GW from 0.5GW. Pennsylvania policymakers are increasingly focused on how data center growth effects electricity prices and reliability. Governor Josh Shapiro (D) has lobbied his counterparts to take a more active role in shaping PJM's policies as it grapples with unprecedented load-growth projections. Shapiro recently imposed new requirements on data center development to ensure new large-load customers pay for the infrastructure needed to serve them and do not shift costs to existing ratepayers. The report projects Pennsylvania will remain PJM's largest generation state, but its share of regional generating capacity shrinks over time as more resources are added in states such as Virginia and Ohio. Pennsylvania's share was 23pc in 2025 and is projected to fall to 20-21pc by 2030 and 14-17pc by 2040. Through 2030, most new generation added in Pennsylvania consists of solar and battery storage. By 2040, the state's gas combined-cycle fleet rises to 32GW from 20GW in 2025, while coal capacity falls to about 1GW from 4.6GW. Across all modeled scenarios, the study projects 14-29GW of coal retirements across PJM by 2040 as plants reach the end of their useful lives and face competition from more economic resources. The study did not evaluate specific solutions to the projected reliability shortfall, including whether extending the lives of existing coal plants or adding capacity beyond the modeled resource mix would improve reliability outcomes. Thermal generators were assumed to retire on or before their scheduled retirement dates, with additional retirements based on modeled economics, PUC officials said in response to questions from Argus . By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Interest rates now main brake on EU renewables: Repsol

16/09/26

Interest rates now main brake on EU renewables: Repsol

London, 16 September (Argus) — The cost of capital has replaced policy and permitting as the main constraint on European renewable investment, Spanish firm Repsol's executive managing director for low-carbon generation Joao Costeira said today. The sector's expansion was based on low interest rates that no longer exist, Costeira told Wood Mackenzie's European Power Investment Summit in London. Renewable assets carry high leverage, so higher debt costs feed directly into returns. And developers created much of their value by selling de-risked operating assets to institutional buyers seeking stable, low yields. Those buyers can find competitive returns from government bonds, thanks to the general rise in interest rates in recent years. Costeira described grid constraints, a lack of storage and capacity mechanisms, and political uncertainty as more manageable problems than interest rates. Bond yields have risen across the currencies that developers use. The 10-year German Bund yield has climbed above 3.5pc, its highest since June 2009. The European Central Bank raised its deposit rate to 2.5pc from 16 September, its second increase this year, to contain energy-driven inflation. The 10-year UK gilt yield touched 5.295pc on 10 September, its highest since August 2007. And the 30-year US Treasury yield reached 5.37pc the same day, Federal Reserve data show. European project finance is priced off euro and sterling curves, so the discount rate on a 20-year contracted cash flow has moved against developers in each of their main markets. Majors retreat Repsol cut its 2030 renewable capacity target to about 10GW in February from 20GW previously. It had more than 5.8GW installed at the end of 2025 and aims for 9GW by 2028. At its capital markets day in March, the company said its low-carbon generation business would be self-financing, with returns above 10pc. Other European majors have gone further. Norway's Equinor dropped its 10-12GW renewable capacity target for 2030 at its capital markets day in June, with chief executive Anders Opedal saying the company had known for several years that it would miss it. It replaced the goal with more than 20TWh of power output by 2030 and plans to allocate about 10pc of capital expenditure to power in 2028-30. BP abandoned its 2030 renewable capacity goal of 50GW in February last year. Repsol is shifting a greater share of capital to the US, where demand growth and lower market saturation support returns, and away from Spanish solar exposed to merchant prices, Costeira said. Targets stretched The pullback comes as official targets require faster buildout. Renewables made up 26.2pc of EU gross final energy consumption in 2025, provisional Eurostat data show, against a binding 2030 target of 42.5pc. Meeting it would require an average increase of 3.3 percentage points a year in 2026-30, compared with a rise of 1 percentage point in 2025. Spain, Repsol's home market, targets 76GW of solar and 62GW of wind by 2030 under its national energy and climate plan, with renewables supplying 81pc of electricity. Germany targets 80pc renewable power by 2030 and 215GW of solar. Renewables covered a record 58pc of German power consumption in January-June, according to preliminary data from research institute ZSW and utility association BDEW, and installed solar capacity reached 129.3GW at the end of August. The US Federal Reserve is expected to raise rates by 25 basis points later today, its first increase since 2023. The Bank of England will take its rate decision on 17 September, with its rate at 3.75pc. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more