MCX electricity futures touched a historic milestone on September 4 with a record turnover of ₹245 crore. The contracts also saw an all‑time high open interest of 1.40 lakh megawatt hours, showing strong participation and rising confidence in the power derivatives market.
The exchange reported that 4.20 lakh megawatt hours were traded in a single day, the highest ever volume. Average daily volume in the current financial year has risen to 89,213 megawatt hours compared with 65,631 megawatt hours last year, marking a growth of 36%. Average open interest has also increased sharply by 45%, moving from 52,548 megawatt hours in the previous year to 76,357 megawatt hours this year.
Experts highlight that trading activity is now spread across all four expiry‑month contracts, reflecting wider adoption. Liquidity has improved in far‑month contracts, giving participants better opportunities for long‑term hedging. The rise in open interest underlines the growing role of electricity futures in managing price risks.
Futures prices are closely tracking spot market movements, strengthening their credibility in price discovery. Power producers, distribution companies and industrial buyers are increasingly using these contracts to hedge against volatility. Financial participants are also finding new opportunities in India’s electricity derivatives market, adding depth and resilience to the sector.
