Electricity Derivatives: A Game-Changer in India's Power Market Reforms | SEBI & NSE Launch Explained
Electricity Derivatives: Powering the Next Phase of India's Energy Market Reforms - Dr.Sanjaykumar Pawar Table of Contents Introduction The Genesis of Electricity Derivatives in India What Are Electricity Derivatives? SEBI and CERC's Vision for the Power Market How Electricity Futures Contracts Work Market Response and Early Performance Metrics Benefits to Market Participants Alignment with Global Best Practices Challenges and Risks Ahead Expert Insights and Forward-Looking Analysis Conclusion FAQs 1. Introduction India’s power sector is stepping into a bold new era. On July 14, 2025 , the National Stock Exchange (NSE) marked a major breakthrough by launching Monthly Electricity Futures Contracts under its Commodity Derivatives segment. While the occasion featured a bell-ringing ceremony, the real impact goes far beyond symbolism. These newly introduced electricity derivatives are poised to transform how energy is traded, priced, and managed in India. At...