National Stock Exchange (NSE) is set to launch electricity futures in coming weeks, which will allows managing price risks for power stakeholders. In an exclusive interaction with Fortune India, Sriram Krishnan, Chief Business Development Officer (CBDO), NSE, explained how electricity futures are going to be game-changer for India's power sector.

“Electricity futures are a crucial product for a market like India, which is the third-largest power producer globally,” he said. “As India’s economy grows and is poised to become the third-largest in the world in the coming years, rising electricity demand and potential fluctuations in power costs make it essential for stakeholders to hedge against risks.”

Krishnan added, “We’re excited to introduce electricity futures to the commodities market. This product will benefit a wide range of power consumers—producers, distribution companies, large industrial users, and even high-net-worth individuals—by offering them a valuable risk management tool.”

“This is the right step forward, as it provides a genuine hedging solution to help manage risk. That’s why we’re excited to introduce it to the market,” he said.

“We are currently in the beta testing phase and expect to issue a circular within the next one to two weeks, pending regulatory clearances,” said Krishnan.