NSE Electricity Futures Emerging as Benchmark for India’s Power Market

Mumbai:

The National Stock Exchange of India (NSE) is pleased to announce that its Electricity Futures contracts are increasingly being recognized as a benchmark reference for price discovery in the Indian power market. In a recent reverse auction conducted by a major utility for the procurement of 50 MUs of Round-The-Clock (RTC) power for delivery between November 5 to November 30, 2025, the price discovered in the Term-Ahead Market (TAM) stood at ₹3,231–₹3,233 per MWh – closely aligned with the NSE Electricity Monthly Futures (ELECMBL) November 2025 contract price of Rs 3,236 per MWh discovered as closing price on 31^st October 2025.

This convergence between the physical and futures market prices reflects the increasing maturity and integration of India’s power trading ecosystem. The NSE Electricity Futures contract has, in a short span of time, emerged as a credible forward price indicator, supporting both buyers and sellers in making informed procurement and hedging decisions for the term-ahead contract.

This close alignment between the physical market auction price and the exchange-traded futures contract indicates that participants are beginning to use NSE’s electricity futures (which is a unified single volume-weighted average price of all 3 exchanges and covers all 3  DAM segments i.e., conventional, Green power and high prices power) as a reference benchmark for physical TAM deals, a sign of growing maturity in India’s power trading ecosystem.

It is a positive trend that enhances transparency and price discovery in the integrated electricity market (Physical and futures markets), helping buyers, sellers & traders align physical contracts with market expectations reflected in exchange-based futures.

NSE’s introduction of electricity derivatives has enhanced transparency, facilitated efficient risk management, and created a unified benchmark for price discovery across physical and financial markets.

NSE remains committed to deepening India’s electricity market through innovation, transparency, and efficiency, aligning with the national vision of developing a robust electricity market modelled on the thesis of “One Nation, One Grid, One Price”.