Overview

• SEBI granted approval on June 7 for MCX to introduce electricity derivatives contracts tied to wholesale power rates
• The new instruments will enable power generators, distribution companies and large consumers to lock in future prices and manage exposure to market swings
• MCX CEO Praveena Rai said the exchange’s regulated framework will improve price discovery and transparency amid India’s shift toward renewable energy and open access
• Electricity derivatives are expected to help distribution companies reduce financial uncertainty by hedging procurement costs during peak demand or low renewable output
• Leveraging its 98% share of India’s commodity futures market by value, MCX plans to release detailed product specifications and launch timelines in the coming weeks