The National Stock Exchange (NSE) announced on Monday, 14 July 2025, that it has launched its new monthly electricity futures contracts for derivative investors, with the aim of helping them hedge their bets against electricity price volatility.
“The National Stock Exchange of India (NSE) is pleased to announce the successful launch of the Monthly Electricity Futures (ELECMBL) contracts today, marking a significant step forward in the development of India’s electricity derivatives market,” according to the press release.
NSE aims to make this launch attractive for market participants, giving derivative investors a transparent asset class on a risk-managed platform to hedge their investments amid electricity price volatility.
The investors will also be able to support ‘long-term planning’ and contribute their share to the nation’s wider energy transition objective.
First day of trading
As of 2:00 p.m. on Monday, 14 July 2025, the Monthly Electricity Futures contracts recorded more than 4,000 lots of trading which represents more than 200 million units of electricity, according to the official data release.
Till the afternoon session, the total turnover trade for the futures contract crossed 87.36 crore in volumes, with the volume-weighted average price at ₹4,368 per megawatt-hour (MWh).
After the trading opened at ₹4,430/MWh, and as of 2:00 p.m. on Monday, the price reached around ₹4,364/MWh, which showed the healthy participation of the derivative market investors.
Market participants like power generators, discoms, and large industrial consumers, and market intermediaries were part of the trading session on the first day for the futures contract.
NSE’s liquidity enhancement scheme plans
According to Mint’s earlier report from 28 June 2025, NSE announced a liquidity enhancement scheme for the electricity futures contracts, which were launched today.
In the circular dated 27 June 2025, NSE said that the enhancement scheme would become effective from 11 July 2025.
“NSE is now pleased to introduce LES in Electricity Futures (Monthly Base Load) with effect from July 11, 2025, to encourage active participation and market development,” the exchange informed investors through an official release.
NSE received the green signal from the markets regulator, the Securities and Exchange Board of India (Sebi), in May 2025 to launch electricity futures contracts, given the demand for power sector derivatives in the global market.
Read all stories by Anubhav Mukherjee
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