NSE Powers Up: Launch of Monthly Electricity Futures

The National Stock Exchange of India (NSE) has launched an innovative financial product: monthly electricity futures contracts. This development is set to empower power market stakeholders, including buyers, sellers, traders, and retailers, by allowing them to effectively manage price risks.

On the launch day, the response was substantial. As of 2 pm, over 4,000 lots were recorded, representing more than 200 million units of electricity. The contracts achieved a total trade turnover exceeding ₹87.36 crore, with the volume-weighted average price standing at ₹4,368 per MWh, according to an official statement from the exchange.

The opening trade price was ₹4,430 per MWh, trending to ₹4,364 per MWh as reporting concluded. This reflects robust participation from power generators, discoms, large industrial consumers, and market intermediaries. The launch aims to provide a transparent, risk-managed platform for hedging electricity price fluctuations, supporting long-term power planning, and furthering India's energy transition ambitions.

(With inputs from agencies.)