Bengaluru, 21 July 2025 – The National Stock Exchange of India Ltd. (NSE) hosted a bell-ringing ceremony today to formally mark the launch of Monthly Electricity Futures Contracts under the Commodity Derivatives segment, and new spot market dashboard. The product, live since July 14th, 2025, aims to bring much-needed hedging and price visibility for participants in India’s growing electricity sector.
The ceremony was attended by key market stakeholders and was graced by Shri. Tuhin Kanta Pandey, Chairman, SEBI; Shri. Jishnu Barua, Chairperson, CERC; Shri. SC Saxena, CMD, Grid – India, Sushri Renu Narang, CEO, NVVYN, Dr Sushanta Chatterjee, CRO CERC, Shri Rakesh Kunar Jain, President CPAI, and other key senior dignitaries from the power and financial ecosystem.
Shri. Jishnu Barua, Chairman, CERC, while delivering his address highlighted that “Electricity derivatives have been under discussion for over a decade, and this product brings financial innovation aligned with the needs of DISCOMs, industrial users, and renewable generators. Supported by over 15 years of functioning physical power exchanges, this futures product helps hedge risk, deepen markets, and encourage informed investment planning.”
Shri. Tuhin Kanta Pandey, Chairman, SEBI, while delivering the address, stated that “Electricity derivatives will help participants plan more effectively by managing price uncertainty, mitigate revenue risks, and attract investment in the power sector. They mark the next phase of India’s power market reforms. A deep and liquid electricity derivatives market will be essential for a reliable, sustainable, and investor friendly power sector.”
Shri. Ashishkumar Chauhan, MD&CEO, NSE, stated that “This launch marks a turning point in India’s electricity market. It aligns our financial markets with international best practices while addressing the specific needs of our domestic power sector. With the help of SEBI, CERC, and multiple market participants, this product will serve as a risk-management tool for India’s energy consumers and suppliers.”
Additionally, he added that product saw robust participation in its initial week of commencement at NSE: As of July 17, 2025 – 20,822 lots were traded cumulatively from July 14th, across three contract months—August, September, and October, wherein, the total traded value crossed ₹450 crore. For the contract month of August, till July 17th, 20,421 lots were traded with prices ranging from ₹4356 /MWh to ₹4364 /MWh. This shows commitment, market readiness and early signs of upcoming success.
The Electricity Futures contracts are cash-settled, available in lot size of 50 MWh, and listed for current plus three future months. The settlement is based on a volume-weighted average price of the Day-Ahead Market (DAM) across all three power exchanges. The product is currently exempt from transaction charges until December 31st, 2025, to encourage early participation.
Release of New Dashboard: Spot Market Insights on Contract Information Page of Electricity Futures
As part of this market development effort, NSE has also launched a dedicated Spot Market Insights page, providing real-time data on physical market indicators—such as demand forecasts, supply trends, weather, reserve requirements, and more—all of which influence spot electricity pricing. This aims to empower participants with context for better hedging and decision-making.
This launch reflects close coordination between market participants, regulators, and infrastructure providers. With protections like margin systems, daily settlement, and regulated clearing, the Electricity Futures contract is built to enable responsible risk management, transparency, and alignment with India’s evolving power market. Additionally, the successful launch and high participation during the first week reflect growing maturity and sophistication in India’s energy markets and the increasing role of financial instruments in enabling planning, procurement, and price stability.
