“This development shows the strong commitment and support of the SEBI and the Central Electricity Regulatory Commission (CERC) – to enable the dynamic and durable power market,” the exchange filing said.
Electricity derivatives contracted by MCX will enable generators, distribution companies and larger consumers to hedge against price volatility and to manage the price risks more effectively by increasing the efficiency in the power market, Filing said.
“This landmark has moved MCX as a torch in commodity trading, while strengthening India’s ambitions to sustainable ENERGY and capital market development.
Speaking on development, MCX MD and CEO Pravi Rai said that the introduction of electricity derivatives shows major development in the commodity ecosystem of India. He said that these agreements would provide a reliable, transparent and regulatory platform to manage power price risks to participants, which are becoming more vibrant due to renewable and market -based reforms.
The inauguration of electricity derivatives is due to the increasing attention on the country’s renewable energy and open power Xace power markets.
Electricity derivatives are expected to serve as an important bridge between physical and financial sectors.
MCX currently offers base metals – zinc, aluminum, copper and lead, bullion (gold and silver), ENERGY zones (oil and natural gas) and mantant oil.
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