Next Article
India's power sector embraces electricity derivatives
Big news for India's power sector: SEBI has finally greenlit electricity derivatives after 20 years of waiting.
This move is set to make the grid more stable and renewable-friendly, helping both producers and buyers manage risks and get fair prices as the market shifts toward cleaner energy.
Why electricity derivatives are needed
With prices swinging from almost zero during sunny afternoons to high spikes in the evenings, India's spot power market has been unpredictable.
Electricity derivatives are designed to smooth out these ups and downs, making it easier for everyone—from rooftop solar users to big companies—to plan ahead and invest smartly as demand for renewables keeps rising.