(THE NEWSMAN OF INDIA.COM)
The National Stock Exchange of India Ltd. (NSE) hosted a ceremonial bell ringing on July 18, 2025, in Mumbai to commemorate the formal launch of Monthly Electricity Futures Contracts and a new Spot Market Dashboard. The futures product, which went live on July 14, 2025, marks a significant step forward in deepening India’s electricity derivatives market, offering improved price visibility and hedging tools for power sector participants.

The event was attended by key figures from the financial and power sectors, including Tuhin Kanta Pandey, Chairman of SEBI; Jishnu Barua, Chairperson of the Central Electricity Regulatory Commission (CERC); S. C. Saxena, CMD of Grid-India; Renu Narang, CEO of NVVYN; Sushanta Chatterjee, Chief Regulatory Officer of CERC; and Rakesh Kumar Jain, President of CPAI, among other dignitaries.

Speaking at the event, CERC Chairman Jishnu Barua highlighted that electricity derivatives had been under discussion for over a decade and emphasized their relevance for DISCOMs, industrial users, and renewable generators. He noted that with over 15 years of functioning physical power exchanges in India, the launch of this futures product will play a key role in hedging risk, enabling investment planning, and deepening electricity markets.

SEBI Chairman Tuhin Kanta Pandey remarked that electricity derivatives represent the next phase of India’s power market reforms. He said the instruments would help participants manage price uncertainty, reduce revenue risks, and make long-term plans with greater confidence. A deep, liquid electricity derivatives market, he added, is essential to support a reliable, sustainable, and investment-friendly power ecosystem.

NSE MD and CEO Ashishkumar Chauhan described the launch as a milestone moment for India’s electricity market, aligning it with global best practices while catering to domestic sector needs. He emphasized that the product had seen encouraging response in its first few trading days, with over 20,822 lots traded as of July 17, 2025, across three contract months—August, September, and October—representing a total value of more than ₹450 crore. The August contract alone saw 20,421 lots traded, with prices ranging between ₹4356/MWh and ₹4364/MWh, underscoring market readiness and early traction.

The electricity futures contracts are cash-settled and come in a lot size of 50 MWh, listed for the current plus three future months. Settlement is based on a volume-weighted average price of the Day-Ahead Market (DAM) across all three power exchanges. To encourage early participation, transaction charges on these contracts will be waived until December 31, 2025.

Complementing the futures contracts, NSE also launched a new Spot Market Insights dashboard, accessible through the Electricity Futures contract information page. This platform offers real-time data on vital indicators such as electricity demand forecasts, supply trends, weather conditions, and reserve requirements. The dashboard aims to provide market participants with comprehensive context to support informed hedging and pricing strategies.

The initiative reflects a collaborative effort involving regulators, infrastructure providers, and market participants. With robust mechanisms for daily settlement, margin systems, and regulatory oversight, the Electricity Futures contract is designed to promote responsible trading, transparency, and alignment with India’s fast-evolving power market. The strong initial response to the launch highlights growing sophistication and trust in financial tools within the country’s energy sector.