NSE to launch monthly electricity futures in next 2-3 weeks
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
The National Stock Exchange NSE ) on Thursday said it will launch electricity futures contract - a product which will allow power buyers, sellers, traders, industrial and retailers to manage price risks - in the next 2-3 weeks."We have all approvals in place...we are talking to all stakeholders. Our internal team is fully prepared...within 2-3 weeks we will announce the launch date," NSE head of sustainability, power, carbon markets and listing Harish K Ahuja said.The electricity futures contract will become functional on the NSE within a few days of the announcement of the launch date.The monthly contract will be available throughout the year, he said, adding, it will commence on the first business day of every month and expire a day before the contract ends.To promote the product, NSE Chief Business Development Officer Sriram Krishnan said the exchange plans to waive off transaction charges on trading of electricity futures contracts for the first six months after launch.The lot size of the one-month electricity futures contract will be 50 MWh, which is equivalent to 50,000 units of electricity in one contract.The price will be decided by taking the 30-day weighted average spot price of the three energy exchanges - Indian Energy Exchange Ltd , Hindustan Power Exchange Ltd and HPL Electric and Power Ltd.The monthly electricity contracts will have 50MWh as the trading unit, Re 1 per MWh as tick size and the maximum order size of 2,500 MWh.Besides, the NSE is exploring a contract for difference (CfD) that enables renewable projects to achieve stable revenue.Last month, NSE received approval from the Securities and Exchange Board of India (Sebi) to launch monthly electricity futures contracts.India's journey toward achieving its net-zero emissions target demands substantial investment, estimated at over USD 250 billion year-on-year till 2047 as per the Niti Aayog report.By 2030, renewable energy sources such as solar and wind are expected to contribute over 50 per cent of the nation's installed power capacity.A robust and dynamic electricity derivatives market is essential to attract this scale of climate finance from both domestic and global investors.NSE was the first stock exchange in India to establish an electricity exchange, launching Power Exchange India Limited (PXIL) in 2008. Our strong understanding of both spot and derivatives markets uniquely positions us to build an integrated and liquid electricity derivatives market. PTI
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
an hour ago
- Deccan Herald
K'taka best place for entrepreneurs to start, grow big: CM
Pitching Bengaluru as India's tech capital, making significant strides in emerging technologies like Quantum Science and Artificial Intelligence, Karnataka Chief Minister Siddaramaiah on Monday invited industry leaders to the 28th Bengaluru Tech Summit, scheduled from November 18 to 20. 'We are the best place for entrepreneurs to start and grow big,' he said during a breakfast meeting organised by the Department of Electronics, IT & BT, Karnataka government, attended by nearly 100 industry leaders. Highlighting Bengaluru's position in artificial intelligence, Siddaramaiah said, 'In AI, Bengaluru ranks fifth among the world's top AI cities. It hosts nearly 50 per cent of India's AI talent, making it the second-largest AI talent hub globally.' The chief minister assured that Karnataka's new IT policy would prioritise infrastructure development for AI. 'From the Mysuru kings to the first IT policy in 1997 and the Global Capability Centre Policy in 2024, Karnataka has always planned ahead,' he added. On Quantum Technology, Siddaramaiah noted, 'Karnataka launched India's first state-level Quantum Technology Roadmap. We aim to make Karnataka Asia's top Quantum Innovation Hub by 2035, targeting a USD 20 billion quantum economy.'
Mint
2 hours ago
- Mint
Canadian dollar rebounds from one-week low after U.S. inflation report
Canadian dollar gains 0.2% against the greenback Touches its weakest since August 5 at 1.3806 Price of oil decreases 1% Bond yields rise across a steeper curve TORONTO, Aug 12 (Reuters) - The Canadian dollar recovered on Tuesday from an earlier one-week low against its U.S. counterpart after the release of U.S. inflation data that did not change expectations that the Federal Reserve would cut interest rates in September. The loonie was trading 0.2% higher at 1.3755 per U.S. dollar, or 72.70 U.S. cents, after touching its weakest intraday level since August 5 at 1.3806. "Given that the U.S. inflation print did not surprise to the upside it is likely we will see a reversal in USD-CAD near-term," said Sarah Ying, head of foreign exchange strategy at CIBC Capital Markets, adding that there is strong support for the pair in the 1.36 area. U.S. consumer prices increased moderately in July, though rising costs for services such as airline fares and tariff-sensitive goods like household furniture caused a measure of underlying inflation to post its largest gain in six months. Uncertain prospects for U.S. tariffs on Canadian goods and weaker-than-expected domestic employment data had pressured the loonie in recent days as the market considered pricing in more interest rate cuts from the Bank of Canada, Ying said. Minutes from the BoC's most recent policy decision, which resulted in the benchmark interest rate being left on hold at 2.75%, are due on Wednesday. Investors see a roughly 50% chance that the central bank will resume its easing campaign by October. Not all was positive for the Canadian currency, however. China announced preliminary anti-dumping duties on Canadian canola imports in a new escalation of a year-long trade dispute and the price of oil, one of Canada's major exports, was trading 1% lower at $63.31 a barrel. Canadian bond yields rose across a steeper curve. The 10-year was up 4.5 basis points at 3.441%, after earlier hitting its highest since August 1 at 3.466%. (Reporting by Fergal Smith, editing by Ed Osmond)
The Print
3 hours ago
- The Print
Indian refiners can do without Russian oil, but with trade-offs
US President Donald Trump last week announced an additional 25 per cent tariff on US imports from India — raising the overall duty to 50 per cent — as a penalty for the country's continued imports of Russian oil. Russian crude supports high distillate yields – the share of crude converted into fuels like petrol, diesel, and jet fuel through distillation. Replacing Russian crude, which accounts for up to 38 per cent of India's refinery intake, with alternatives will shift yields, resulting in lower middle distillates (diesel and jet fuel) and higher residue outputs, according to global real-time data and analytics provider Kpler. New Delhi, Aug 10 (PTI) Indian refiners, the world's biggest user of Russian oil, can operate without supplies from Moscow from a technical standpoint, but the shift would involve major economic and strategic trade-offs, analysts said. Since the steep tariffs are likely to hit the USD 27 billion of non-exempt exports that India does to the US, there has been chatter around stopping or curtailing oil imports from Russia. 'Indian refiners can operate without Russian crude from a technical standpoint, but the shift would involve major economic and strategic trade-offs,' Kpler said in a report, 'US Tariffs on Indian Imports: Implications for Energy Markets & Trade Flows'. India turned to purchasing Russian oil sold at a discount after Western countries imposed sanctions on Moscow and shunned its supplies over its invasion of Ukraine in February 2022. Consequently, from a mere 1.7 per cent share in total oil imports in 2019-20 (FY20), Russia's share increased to 35.1 per cent in FY25, and it is now the biggest oil supplier to India. In terms of volume, India imported 88 million tonnes from Russia in FY25, out of the total shipment of 245 million tonnes. In July, India received 1.6 million barrels per day of crude from Russia, ahead of China's nearly 1 million bpd and Turkey's around 5,00,000 bpd. Kpler said deep discounts and strong compatibility with India's refining systems led to a surge in imports of Russian Ural crude oil. 'Russian crude supports high distillate yields (diesel and jet fuel) and is ideally suited to India's advanced refining infrastructure. It has enabled both state-owned and private refiners to operate above nameplate capacity while maintaining strong margins. 'A reversal of this will result in a mild yield shift (lower middle distillate yields, higher residue yields) and probably a small reduction in primary throughput rates, as margins will no longer command a sizeable premium against regional benchmarks, considering existing discounts on Russian oil,' Kpler said. The Indian government has issued diplomatic but firm responses to the US tariffs, emphasising the importance of maintaining energy security. 'Should Russian oil become inaccessible, India could face an additional USD 3-5 billion in annual import costs (based on a USD 5 per barrel premium on 1.8 million bpd). If global prices rise further (a scenario in which Russian crude exports are being curtailed, in the absence of sufficient buying interest from India), the financial burden could increase significantly,' the report said. This may prompt the government to cap retail fuel prices, which could strain fiscal balances. A spike in the import bill could even lead to a reduction in overall crude purchases. India's limited storage capacity further constrains its ability to manage such disruptions. While Russian flows to India continue under a 'business-as-usual' stance, the escalating US rhetoric has reopened conversations about supply diversification, with some Indian refiners reportedly booking increased volumes of Middle Eastern crude. According to Kpler, replacing 1.8 million barrels per day (bpd) of Russian crude would require a multi-regional approach. The Middle East remains the most viable option operationally, grades such as WTI Midland from the US could contribute 2,00,000-4,00,000 bpd. These (US crude) are lighter and yield less diesel, a disadvantage for India's distillate-heavy demand. Long-haul freight and cost considerations will also restrict scalability, it said. West Africa and Latin America (LatAm) crudes offer moderate potential. 'A balanced replacement strategy may involve 60-70 per cent of substitute volumes from the Middle East, with US and African/LatAm crudes serving as tactical fillers. Nevertheless, none match Russian barrels in cost, quality, or reliability (some of the Russia-to-India barrels have already been contracted under term agreements),' it noted. According to Kpler, Indian refiners can technically adapt to the loss of Russian barrels, but with significant economic consequences. 'Replacing 1.7-2.0 million bpd of discounted, medium-sour crude would erode refining margins and misalign product yields. Lighter substitutes like WTI or West African grades produce more gasoline and naphtha, reducing diesel output and hurting both domestic and export economics.' Even Middle Eastern grades, while closer in quality, are priced tightly to official selling prices (OSP), leaving limited arbitrage opportunities. 'In addition to higher feedstock costs, Indian refiners would face elevated freight and credit charges,' it said. 'The transition is commercially painful, even if technically feasible.' PTI ANZ BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
