NSE launches monthly electricity futures contracts, over 200 million units traded on debut

The National Stock Exchange (NSE) on Monday launched monthly electricity futures (ELECMBL) contracts, recording trades of over 4,000 lots representing more than 200 million units of electricity on the first day.

The ELECMBL contracts allow power buyers, sellers, traders and retailers to manage price risks.

According to NSE, as of 2 pm, the total turnover crossed ₹87.36 crore, with the volume-weighted average price at ₹4,368 per megawatt hour (MWh).

The first trade opened at Rs 4,430/MWh, and prices were trending around Rs 4,364/MWh at the reporting time.

"The first trade opened at Rs 4,430/MWh, and as of the reporting time, the price was trending around Rs 4,364/MWh, reflecting healthy participation across participants including power generators, discoms, large industrial consumers, and market intermediaries, it said.

The exchange said the launch would provide a transparent, risk-managed platform for power generators, discoms, large industrial consumers, and market intermediaries to hedge electricity price volatility.

Founded in 1994, NSE is India’s largest stock exchange by total and average daily turnover for equity shares. It is also the world’s largest derivatives exchange by trading volume in 2024, according to Futures Industry Association data.