Falling prices reduce trading volume on BBCE.

The drop in energy prices in the Free Energy Market impacted the financial volume traded in May on the BBCE (Brazilian Energy Trading Platform).

The platform (which acts as the main organized environment for trading electricity contracts in the country) recorded approximately R$ 3,8 billion in transactions during the period, a result 34,3% lower than that observed in April and 49% lower compared to May 2025.

The volume of energy traded totaled approximately 15 TWh, a decrease of 39,5% compared to the previous month and 49,5% year-on-year. The number of transactions also declined in May: 2,6 deals were registered, representing a drop of 23,6% compared to April and 50% compared to the same month last year.

According to Eduardo Rossetti, Director of Products, Communication, Marketing and Institutional Relations at BBCE, the devaluation of contracts for delivery in 2026 was one of the main factors behind the observed market downturn.

Among the products that registered the largest price drops are conventional contracts for supply in the Southeast region. The product with delivery in July fell 25,11%, ending the period quoted at R$ 207,64/MWh.

Next in line are the contracts for June, with a drop of 20,99% and a price of R$ 208,57/MWh; May, with a decrease of 19,93% and a price of R$ 222,54/MWh; and the 3Q2026 product, which fell 15,04%, to R$ 245,51/MWh.

During the same period, spread products followed the opposite trajectory and registered appreciation. "The movement reflects the hydrological conditions and climate outlook for the coming months, in an El Niño context, in addition to load revisions to levels lower than previously projected," Rossetti stated.

Contracts continue to fall in June.

The downward trend in prices continued during the week of June 8-12, especially in contracts expiring in 2026.

Among the biggest declines were the conventional contract for delivery in the Southeast in July, with a drop of 17,06%, followed by the 3Q2026 product (-12,42%), August (-12,07%), second half of 2026 (-8,20%) and September (-6,12%). These contracts were also among the most traded on the platform during the period.

According to Rossetti, the movement continues to be influenced by market factors. The executive adds that maintaining the risk aversion parameters of CVaR (Conditional Value at Risk) has stimulated the trading of contracts for 2027, although without a clear direction for prices.

"Maintaining the risk aversion parameters of CVaR brought volume to the 2027 product, but without a defined price movement trend," he concluded.

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