NSE launches monthly electricity futures, sees over 200 million units traded on debut
By 2 pm on the debut day, NSE said trading volumes crossed 4,000 lots, representing more than 200 million units (or 200 gigawatt-hours) of electricity.
- Jul 14, 2025,
- Updated Jul 14, 2025 4:29 PM IST
The National Stock Exchange of India (NSE) on Monday successfully launched its Monthly Electricity Futures (ELECMBL) contracts, marking a significant milestone in India's energy derivatives market. The new offering aims to provide market participants with a robust platform to hedge against price volatility in the power sector while aiding in efficient power procurement and planning.
By 2 pm on the debut day, NSE said trading volumes crossed 4,000 lots, representing more than 200 million units (or 200 gigawatt-hours) of electricity. The contracts saw strong interest from a broad spectrum of participants including power generators, distribution companies (discoms), large industrial consumers, and trading intermediaries. The total turnover exceeded Rs 87.36 crore, with the volume-weighted average price at Rs 4,368 per megawatt-hour (MWh).
The inaugural trade was executed at Rs 4,430/MWh and prices later stabilized around Rs 4,364/MWh, reflecting healthy price discovery and liquidity. The launch underscores growing interest in electricity as a tradable commodity amid India's expanding energy needs and push for market-based reforms.
NSE stated that the Monthly Electricity Futures contracts will enhance transparency and risk management in the power sector. It allows participants to lock in future electricity prices, reduce procurement uncertainty, and support long-term financial planning. This also aligns with India’s broader energy transition goals by encouraging efficiency and competition in power markets.
The exchange, known for pioneering screen-based trading in India since 1994, continues to strengthen its derivatives offerings. According to the Futures Industry Association (FIA), NSE remained the world's largest derivatives exchange by trading volume in 2024.
With this new product, NSE further cements its leadership in derivatives innovation while contributing to the modernisation of India's energy ecosystem.
The National Stock Exchange of India (NSE) on Monday successfully launched its Monthly Electricity Futures (ELECMBL) contracts, marking a significant milestone in India's energy derivatives market. The new offering aims to provide market participants with a robust platform to hedge against price volatility in the power sector while aiding in efficient power procurement and planning.
By 2 pm on the debut day, NSE said trading volumes crossed 4,000 lots, representing more than 200 million units (or 200 gigawatt-hours) of electricity. The contracts saw strong interest from a broad spectrum of participants including power generators, distribution companies (discoms), large industrial consumers, and trading intermediaries. The total turnover exceeded Rs 87.36 crore, with the volume-weighted average price at Rs 4,368 per megawatt-hour (MWh).
The inaugural trade was executed at Rs 4,430/MWh and prices later stabilized around Rs 4,364/MWh, reflecting healthy price discovery and liquidity. The launch underscores growing interest in electricity as a tradable commodity amid India's expanding energy needs and push for market-based reforms.
NSE stated that the Monthly Electricity Futures contracts will enhance transparency and risk management in the power sector. It allows participants to lock in future electricity prices, reduce procurement uncertainty, and support long-term financial planning. This also aligns with India’s broader energy transition goals by encouraging efficiency and competition in power markets.
The exchange, known for pioneering screen-based trading in India since 1994, continues to strengthen its derivatives offerings. According to the Futures Industry Association (FIA), NSE remained the world's largest derivatives exchange by trading volume in 2024.
With this new product, NSE further cements its leadership in derivatives innovation while contributing to the modernisation of India's energy ecosystem.