The launch of monthly electricity futures on the National Stock Exchange (NSE) in July 2025 marks a significant milestone for India’s evolving power market. Market players can now trade a standardised power derivative at a national level, allowing for a transparent, risk-managed platform for electricity price exposures. Cash-settled contracts are quoted in rupees per megaWatt-hour (mWh) with narrow tick sizes, clear lot units, making it a product that appeals to both corporate hedgers as well as financial investors.

Liquidity enhancement mechanisms, as well as market makers, have been provided for by the exchange to allow for orderly trading. Initial sessions saw some encouraging trade, with a clear demonstration of genuine participation by utilities, power generators, as well as large in

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