By Admin 
Electricity futures trading: The National Stock Exchange (NSE) will start a monthly power futures contract with cash-nipatan in July 2025. Sustainability, power/carbon market and listing head Harish Ahuja have informed Moneycontrol in NSE.
Explain that electricity futures or electricity futures are a financial contract. In this, investors or heifers already fix electricity prices and lock it for the future. In such a situation, if the power prices of electricity increase in the coming time, then it will make a profit for the buyers who buy the futures. From the trading member, any financial institution from the trading member to the corporate bye, generator, businessman or SEBI, can start trading the Electricity Futures.
Power price will be reduced in futures market
Talking to Moneycontrol, Harish Ahuja said, “Apart from general supply and demand curve, the energy exchange in the spot market is also inspired by the desire.” This can cause instability in electricity prices. The futures market helps in reducing instability in the spot market. This gives investors a way to escape, so finally we will see a decrease in electricity prices in the futures market. In India’s power exchanges may rise in the power exchanges during peak demand or when the balance deteriorates.
How much will the lot of trading be size?
The lot size or trading unit for power futures will be 50 MWH, which is equal to 50,000 units of electricity. That is, every contract will be of 50 mwh. The maximum order size will be 50 times the trading unit. The trading will be between 9 am to 11:30 / 11:55 pm from Monday to Friday. In this, the trading window has been kept till late night as the demand for the spot market is seen in the evening.
There will be profit in this way
Overall, it is a derivative contract, in which buyers and sellers agree to buy or sell power at a certain date at a certain date. Through this, both power producers and suppliers already decide electricity prices to reduce the risk of prices fluctuations in the upcoming problems. Suppose if an electricity producer has to supply 100 MW power next month and he buys an electricity futures contract in the futures market, in which the price of electricity supplied next month is already fixed. In such a situation, it will be profitable if the price of electricity increases next month.
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