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Electricity is something we use every day. We notice it only when there’s a power cut or when the bill feels unusually high. But what we rarely consider is just how dynamic and volatile electricity pricing actually is!
That changes today.
For the first time on the MCX and NSE, electricity is now tradable as a futures contract. Much like crude oil or natural gas, power joins the commodity markets as a tool not just for trading, but for hedging real risk.
It’s a small launch. But a big step.
Every day, India’s electricity is traded on the Day-Ahead Market (DAM) of the Indian Energy Exchange (IEX). That’s where buyers and sellers discover the price of power for the next 24 hours.
Electricity futures are built on a simple idea: giving participants the ability to plan ahead by locking in electricity prices instead of reacting to daily volatility.
Now available on both MCX and NSE, these contracts represent a major milestone in India's evolving energy trading landscape.
MCX (ELECDMBL)
Benchmarked to the Unconstrained Market Clearing Price (UMCP) of the Day-Ahead Market (DAM) on the Indian Energy Exchange (IEX).
Please note: This reflects the average discovered price of electricity without transmission constraints, based on bids and offers for next-day delivery.
NSE (ELECMBL)
Benchmarked to the volume-weighted average UMCP of the Day-Ahead Market (DAM) on Power Exchange India Limited (PXIL) over the contract expiry month.
Please note: This provides a monthly aggregated reference price based on actual cleared trades.
Both contracts are SEBI-regulated, standardized in format, and cleared via their respective clearing corporations—MCXCCL and NSE Clearing Ltd.
It’s not about speculating on electrical energy. It’s about managing price risk in one of the most essential services in the world.
The price of electricity in India isn’t static. It changes every day, driven by demand surges, fuel shortages, transmission bottlenecks, and even the weather.
Large users of power, factories, malls, and data centres don’t experience electricity as a flat bill. For them, it’s a cost line item that swings with every spike in demand or dip in supply. In an energy-hungry economy like ours, volatility in power prices is real and increasingly painful.
That volatility is precisely what makes electricity ready for the markets.
Electricity Futures Snapshot: MCX and NSE Contract Specifications
Parameter | MCX (ELECDMBL) | NSE (ELECMBL) |
Contract Size | 50 MWh | 50 MWh |
Quote Unit | ₹ per megawatt-hour | ₹ per megawatt-hour |
Contract Type | Monthly base-load contracts; listed for current + 3 forward months | Monthly contracts (current + next 3 months) |
Expiry / Last Trading Day | Business day before the last calendar day of the contract week/month | Business day immediately preceding the last calendar day of the expiry month; closes before spot dissemination |
Trading Hours on Expiry Day | Closes at 12:00 PM IST on expiry day | Regular trading session: 9:00 am to 11:30/11:55 pm (Mon–Fri) |
Settlement | Cash-settled based on Due Date Rate derived from volume-weighted UMCP in IEX’s Day-Ahead Market . | Cash-settled; marked to market daily; final settlement via DDR based on volume-weighted average UMCP of PXIL DAM for expiry month |
Underlying Benchmark | UMCP (Day-Ahead Market) via IEX | UMCP from PXIL Day‑Ahead Market |
Symbol | ELECDMBL | ELECMBL |
Exchange | MCX – Multi Commodity Exchange | NSE – National Stock Exchange |
Regulatory Framework | SEBI-regulated, cleared via MCXCCL (MCX Clearing Corporation) | SEBI-regulated, cleared via NSE Clearing Ltd. |
They’re listed and regulated just like any other commodity futures product, transparent, standardized, and cleared through exchange mechanisms.
If you’ve traded crude oil or natural gas, the process will feel familiar. But the underlying demand drivers here are different and fascinating.
Source: MCX, NSE and Economic Times
Power producers can lock in revenues.
Discoms can manage procurement costs better.
Large businesses can stabilize expenses.
Traders can participate in a new, dynamic market.
Retail investors, especially those with a pulse on energy or commodities, have something new to learn (and maybe earn).
We often talk about market depth, but what does that really mean?
It means markets that reflect the real world. Not just tech stocks or IPO buzz, but tools that let businesses plan better, hedge smarter, and operate with more confidence.
India’s electricity market is undergoing a quiet but transformative shift.
On July 10, MCX launched its first electricity futures contracts. Just a few days later, on July 14, NSE followed with its own set of contracts. Together, these twin launches mark the formal arrival of exchange-traded electricity futures in India, a new milestone for energy trading, price transparency, and risk management.
For years, electricity has been viewed as a cost, not a tradable asset. That’s changing. With standardized futures contracts now available on both exchanges, power consumers, traders, and market participants can lock in rates ahead of time, hedging against price swings in one of the most volatile markets.
What’s even more promising?
With both MCX and NSE in the ring, price discovery becomes more robust, market participation broadens, and credibility increases, setting the stage for a truly competitive electricity futures ecosystem.
Electricity futures are a new asset class. Consider starting with a small position using stop-losses wisely. Trading electricity futures on Angel One is just as seamless as trading any other commodity. If you're already trading crude oil, natural gas, or gold, this will feel familiar.
Here are a few steps to keep in mind:
First Time Commodity Traders:
Log in to your Angel One app or web platform
Go to ‘My Profile’ > ‘Segment Activation’
Enable the Commodity segment
Complete the necessary documentation (PAN, income proof, etc.)
Search for ‘Electricity’ Contracts
Tap on the ‘Search’ icon
Type ‘Electricity’ or use the ticker like ELECDMBL / ELECMBL
You’ll see weekly futures contracts listed by expiry date
Check the Contract Details
Before placing a trade, review the specs:
Contract Size: 50 MWh
Price Quote: ₹ per MWh
Settlement: Cash
Margin: Check the latest margin requirement in the contract info section
Place a Buy or Sell Order
Choose your preferred contract
Tap ‘Buy’ or ‘Sell’ based on your view
Set quantity, limit/market price, and place the order
You can track your positions in the ‘Commodity Positions’ tab
Track & Manage Your Position
Since electricity futures are cash-settled, make sure to square off or roll over your position before expiry if you’re not intending to take delivery.
Set alerts for price movements
Use technical indicators or news feeds inside Angel One for better insights
Watch market depth for liquidity signals
This isn’t the flashiest launch of the year.
Small steps like this build real depth in India’s financial markets. We’re watching it closely, and if you're serious about understanding the future of trading, you should too.
See you on the grid.
Disclaimer:
This blog is for educational purposes only.
The securities are quoted as an example and not as a recommendation.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 23, 2025, 4:24 PM IST
Team Angel One
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