Whitepaper: Brazilian Power Trading - Talent Strategies for Market Growth

The Brazilian power trading talent market is undergoing rapid transformation. In 2025, a surge in demand for seasoned, locally-embedded senior professionals has reshaped the competitive dynamics of the space.

In this whitepaper, HC Group Portfolio Director and Head of our São Paulo office, Andrew Watson examines current market trends and competitive activity. He also explores the strategic talent considerations facing any firm with the intention of entering or growing in the Brazilian power market.

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Market Overview: Foundations for Growth

Brazil is Latin America's largest and most diversified energy market, with over 236 GW of installed capacity across hydropower, thermal, wind, and solar. Since market liberalisation in 1995, private sector participation has expanded significantly. In 2000, there were only five registered power traders; today, that number exceeds 300, driven by regulatory reform and investor interest.

A major inflexion point came in 2022 when consumers gained the right to purchase electricity from any supplier. This boosted liquidity and attracted new players energy retailers, banks, and independent power producers. In January 2024, reforms expanded free-market access to all consumers connected to medium and high-voltage, prompting over 17,400 units (805 MW average demand) to apply to leave the regulated tariff regime, according to ANEEL.

Entry Strategy: The Build vs Buy Dilemma

At the heart of every Brazil strategy is a simple yet consequential question: Do we build a trading presence from scratch or acquire existing infrastructure and talent?

While there is no one-size-fits-all answer, several truths are universal:

• Local knowledge is critical: This is not a market that can be successfully run from London, Geneva, or Houston. The informal nature of commercial relationships, the complexity of regulatory requirements, and the personal networks that underpin deal flow all require boots on the ground.
• Technology alone won’t win: Even the most advanced algorithmic or platform-based traders will face cultural and operational limitations if they cannot embed within the market’s deeply interpersonal environment.
• Execution timelines matter: Building a team locally requires time, licensing, systems, and trust. Acquisitions offer speed, but with integration risk.

Before Committing to Brazil, Are You Asking the Right Questions?

As a search and advisory partner to many global trading leadership teams, we advise our clients to ask the following questions before making any Brazil-related investment:

• Do we have anyone internally with credible Brazil power market experience or do we need to source externally?
• Is our trading ambition tied to local generation assets, customer load, or purely speculative positioning?
• Can our systems, compliance processes, and trading platforms operate independently under Brazilian law or do we require integration with global infrastructure?
• Are we prepared for full legal entity setup, trading authorisation, and licensing hurdles?
• Can we commit to a 5-plus-year strategy in Brazil given high interest rates, political volatility, and FX risk?

Conclusion

Brazil is not a simple market, but it is a strategically significant one. The prize for first movers is real: access to a maturing, liberalising, and increasingly liquid power market in the heart of Latin America. But the risks are equally real: poor hiring decisions, flawed regulatory assumptions, or misaligned timelines can derail a buildout before it begins.

If Brazil is on your radar, the right talent decisions made now will determine whether your strategy succeeds. We’re here to help you make those decisions with confidence.