NSE dominates electricity futures with 75-80% share, eyes renewable CFD launch - Big update ahead

India’s leading exchange is tightening its grip on the electricity derivatives space while preparing to expand its commodities playbook. Sriram Krishnan, Chief Business Development Officer at the National Stock Exchange, said the bourse currently commands a dominant 75–80 per cent market share in electricity futures and is working to deepen participation across the power value chain.

Krishnan noted that the exchange is keen to onboard more stakeholders, including generators, distribution companies and industrial consumers — to strengthen liquidity and price discovery in electricity contracts. He added that the NSE plans to introduce Contracts for Difference (CfDs) for renewable energy projects in the coming months, a move aimed at supporting India’s clean energy transition and providing better hedging tools for renewable players.

On the commodities front, the exchange is witnessing rising traction. Krishnan highlighted that premium turnover in WTI crude oil contracts touched Rs 65 crore in a single day recently, reflecting growing interest among traders and hedgers.

He said crude oil, natural gas, gold and silver remain key focus contracts for the exchange, with efforts underway to enhance depth and participation in these segments. The exchange has also applied for approvals to introduce additional products and expects heightened activity in the commodities market going forward.

However, Krishnan sounded a note of caution on the SME segment, describing it as inherently risky. He urged investors to remain vigilant and assess risks carefully before participating in smaller and relatively less liquid counters.

With new product launches in the pipeline and expanding participation in energy and bullion derivatives, the NSE appears poised for the next phase of growth in the commodities ecosystem.