Marubeni plans to strengthen its presence in Japan’s power market by establishing a new trading venture, joining a wave of companies seeking to capitalize on the sector’s expansion.
The company’s power retail arm and its U.K.-based energy trading unit SmartestEnergy will each hold a 50% stake in the newly-formed venture, called Marubeni Power Trading, according to people with direct knowledge of the matter. The joint venture will trade spot power and futures, as well as fuel futures products, the people said, asking not to be identified as the discussions aren’t public.
Japan’s power market has steadily expanded since fully liberalizing in 2016, drawing overseas traders such as Gunvor Group and Vitol Group, which are attracted by its price volatility from seasonal shifts to uncertainty over restarting nuclear reactors. Long-stagnant power consumption is expected to rise on the back of artificial intelligence and data center use, giving new momentum to what could emerge as one of the largest traded power markets.
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