Major oil trading house Trafigura said Dec. 2 it has taken a majority stake in a power trading platform to accelerate the firm's entry into North American Independent System Operator power markets.
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Trafigura US Holdings, a fully-owned, US indirect subsidiary of Switzerland-based Trafigura Group acquired a majority share in power trading platform Energy Renaissance, a technology-driven power trading business that focuses on short-term US power markets, according to a statement.
Energy Renaissance was established by privately held Denver Energy Group.
The new joint venture will contribute to the growth of Trafigura's power and renewables division, "complementing existing trading capabilities in the US and European markets," the company said.
The business is developing services that focus on the electricity market "as it shifts rapidly from reliance on fossil fuels to renewable energy sources such as wind and solar power" and aims to assist "utilities and renewable power producers adapt to a new world of fluctuating supply," according to the statement.
US power market participants expect that power prices will likely be lower as the system transitions to mostly zero marginal cost renewable energy resources and energy storage.