Electricity futures started in India in July 2025, letting you trade the monthly wholesale power price without handling any power. This guide covers the contract, what drives the price and the risks to know before you trade.
Electricity in 30 second s
Electricity futures let you take a view on India’s wholesale power price without buying or selling any power. MCX launched them on 10 Jul 2025, and NSE followed on 14 Jul 2025. Each contract covers round-the-clock (base-load) power for one calendar month. At expiry, it settles in cash against the average Day-Ahead Market price for that month. India is the world’s third-largest power market, using over 1,700 TWh a year. Only about 7% of that is bought and sold on power exchanges, so the futures market is still youn g.
Contract snaps hot
| Exchange | Symbol | Lot size | Price quoted per | Value of a ₹1 move | Settlement reference |
|---|---|---|---|---|---|
| MCX | ELECDMBL | 50 MWh | MWh | ₹50.00 | Indian Energy Exchange (IEX) Day-Ahead Market price |
| NSE | ELECMBL | 50 MWh | MWh | ₹50.00 | Day-Ahead Market prices calculated by Power Exchange India (PXIL) across the power exchanges |
- What you trade:50 MWh of base-load power, spread across every 15-minute block of every day in the month. 1 MWh is 1,000 units (kWh), so ₹4.20 per unit equals ₹4,200 per MWh.
- Tick size: ₹1 per MWh, worth ₹50 per lot.
- Maximum order size: 2,500 MWh, which is 50 lots.
- Contract months: every calendar month. Up to four monthly contracts trade at a time, for example September to Decembe r 2026.
- Expiry: the business day before the last calendar day of the contract month. If that day is a holiday, the previous business day applies.
- Settlement: cash only, with no delivery of power. The final price is the average of the daily volume-weighted Day-Ahead Market clearing prices for the who le month.
- Trading hours: 9:00 AM to 11:30 PM while US daylight saving is on. From 2 Nov 2026, trading runs until 11:55 PM.
- Margin: at least 10% of contract value, or the SPAN margin if higher. In September 2026, brokers were charging about 12% to 15%.
- Daily price limit:6% in either direction. After a 15-minute cooling-off period, it can widen by a further 3%, t o 9% in all.
What moves the elect rici ty price
- Weather. Heatwaves push up air-conditioner use and power demand. Peak demand hit a record 270.82 G W in May 2026.
- Overall demand. Consumption rose 12.85% year on year in August 2026, to 169.01 billion units. In FY26, demand grew only 1.1%, a nd prices fell.
- Renewable output. More solar, wind and hydro power adds supply to the exchanges and pulls prices down. This drove the 13. 7% fall in FY26.
- Coal and thermal supply. Most of India’s power still comes from coal plants. Plant outages or coal shortage s tighten supply.
- Bidding on the exchange. In September 2026, Day-Ahead Market buy bids rose 281% year on year. The average price m ore than doubled.
- Rules and regulation. The power market is regulated by CERC, and the futures market by SEBI. Changes to exchange rules or price caps can sh ift prices quickly.
Electricity prices since launch
| Month | Average price (₹ per MWh) | Source | What happened |
|---|---|---|---|
| Dec 2025 | 3,932 | MCX settlement price | Winter; consumption up 7%, but prices barely moved |
| Mar 2026 | 4,200 | IEX Day-Ahead Market average | Ample supply; FY26 average was ₹3,860, down 13.7% |
| May 2026 | 4,880 | IEX Day-Ahead Market average | Summer heat; record peak demand of 270.82 GW |
| Jun 2026 | 5,168 | MCX settlement price | Monsoon began, yet prices stayed above May levels |
| Jul 2026 | 4,963 | MCX settlement price | Prices eased slightly from June |
| Sep 2026 | 7,234 | MCX settlement price | Up 105% on a year earlier as buy bids surged |
MCX and NSE use different price references, so their settlement prices can differ. In September 2026, MCX settled at ₹7,234 per MWh and NSE at ₹4,949. In December 2025, the two were close, at ₹3,932 and ₹3,859.
How the s ettlement price works
- The power exchanges run a Day-Ahead Market every day. Buyers and sellers bid for power to be delivered the next day.
- The day is split into 96 blocks of 15 minutes. Each block gets its own clearing price.
- A daily average is worked out, weighted by the volu me cleared in each block.
- The settlement price is the average of these daily figur es across the whole month.
- The contract expires a day or two before the month ends. So the last days’ prices are still unknown when trading stops.
Electri city through the Indian year
| Season | Timing | What usually happens |
|---|---|---|
| Summer peak | April to June | Heat drives record demand; prices tend to rise |
| Monsoon | July to September | Hydro and wind output rise; prices often ease, though humid heat can keep demand high |
| Festive season | October to November | Festive activity adds to demand; Diwali falls on 8 Nov 2026 |
| Winter | December to February | Lower cooling demand; prices are usually softer |
These are typical patterns, not rules. September 2026 was a monsoon month, yet prices more than doubled from a year earlier.
Who uses electricity futures
- Power generators lock in a s elling price for future months.
- Distribution companies (discoms) fix part of their buying cost.
- Large industrial users hedge the cost of power passed on to them.
- Traders and investors take a view on where power prices are heading.
How to read electricity alongside other markets
- Futures above recent spot prices: the market expects demand to rise or supply to tighten in that month.
- Electricity up, coal or gas up: higher fuel costs are feeding through to power prices.
- IEX volumes: IEX publishes monthly volume and price data in the first few days of each month. Rising buy bi ds are an early sign of firmer prices.
- Weather forecasts: IMD heatwave and monsoon forecasts often move the ne xt month’s contract.
Risks to know
- Sharp swings: spot power prices can move from very low to several thousand rupees per MWh in a short time.
- Leverage: a margin of about 10% to 15 % means losses can exceed what you put in.
- Settlement surprises: the final price uses the full month’s average. It can differ a lot fr om the futures price shortly before expiry.
- Exchange gap: MCX and NSE use different price references, so th e same month can settle at different prices.
- Thin trading: these contracts are new. Volumes are lower than i n gold or crude oil, so spreads can be wider.
- Broker square-off: some brokers a sk you to close positions a day before expiry.
Quick FAQs
Do I ever have to take delivery of power? No. Electricity futures are cash-settle d. You only receive or pay the price difference.
How much is one lot worth? One lot is 50 MWh. At ₹5, 000 per MWh, that is ₹2,50,000 of contract value.
Why do MCX and NSE electricity futures settle at different prices?MCX settles on the IEX Day-Ahead Market price. NSE uses prices calculated by PXIL across the power exchanges, so the two can differ.
Do I need a separate account to trade electricity futures? No, but you need the commodity segment activated. In the FYERS app, go to Profile, then Segments, activate Commodity, upload income proof (such as your latest ITR, 6 months’ bank statement or 3 months’ salary slips) and e-sign with Aadhaar OTP.