Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q1 FY2022 Earnings Presentation
43 slides from Indian Energy Exchange's earnings presentation, Jul 23, 2021
Slide 1: Exchange filing cover letter
IEX INDIAN ENERGY EXCHANGE Dated: July 23, 2021 The Manager The Manager BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot no. C/1 Dalal Street G Block, Bandra Kurla Complex Mumbai- 400001 Ba
Slide 2: Investor Presentation – Q1FY'22
Investor Presentation – Q1FY’22 Leading India’s Energy Transformation 1
Slide 3: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 2
Slide 4: Energy Sector is rapidly transforming
Energy Sector is rapidly transforming Shifting Energy Mix in India Deployment of low-carbon Decarbonisation technologies - wind and solar % Renewable 45% 25% 28% Small-scale generation 10% 11% Decentralisation 2% across T&D network FY 2010 FY 2021 FY 2030 Installed Capacity Generation Democratisatio
Slide 5: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 4
Slide 6: Electricity Value Chain: Key Highlights
Electricity Value Chain: Key Highlights Generation Transmission Distribution Consumption 384 GW installed World’s largest network Distribution reforms Power surplus nation capacity: underway: • 97 GW renewables Inter-regional • Tariff reforms Peak demand at • 48% private transmission capacity: • Con
Slide 7: Installed capacity has grown at a faster pace compared to demand
Installed capacity has grown at a faster pace compared to demand 371 382 384 356 10 Yr CAGR 299 326 344 Capacity 268 224 243 57 69 94 87 94 97 growth of 200 39 CAPACITY (GW) 174 28 29 32 8% and 25 18 generation 211 218 223 235 231 235 234 113 131 152 168 189 increase of 5% in the 8% FY'11 FY'12 FY'1
Slide 8: Total Installed Capacity = 384 GW
Total Installed Capacity = 384 GW Central State Renewable 97 GW 104 GW 97 GW Hydro 46 GW Thermal 234 GW Private 183 GW Nuclear 7 GW 22-07-2021 7
Slide 9: Power Sector construct
Power Sector construct Long-term (89%) Short-term (11%) 1,272 BU Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 11 days 88.5% 3.4% 6.3% 1.8% Exchanges (Only up to 11 Bilateral & Deviation days) Banking Settlement/ Long-term PPA ➢Day Ahead Transactions Unscheduled Marke
Slide 10: Fast growing Exchange Markets
Fast growing Exchange Markets Exchanges (BU) Bilateral (BU) DSM (BU) 41% YoY 67 25 80 56 58 -25% YoY 24 1.4% 56 44 54 YoY 48 23 23 FY18 FY19 FY'20 FY'21 FY18 FY19 FY'20 FY'21 FY18 FY19 FY'20 FY'21 Driven by competition and flexible procurement, the Exchange markets constitute 55% of power market. •
Slide 11: Deepening India's Power Markets
Deepening India’s Power Markets 91% 49% 47% 39% 34% 23% 15% 6% Nordpool Germany UK Netherlands Switzerland Belgium France India Markets are in the range of 30-80% in developed economies. At 6%, India has an opportunity to deepen the power market. Source: CRISIL Study 11
Slide 12: Increasing share in short term market
Increasing share in short term market Exchange Market and ST Market - % of Total Consumption – India Share of exchanges in short-term market 30.2% 34.4% 37.2% 36.9% 41.2% 54.5% Share of exchanges in total consumption Share of ST market in total consumption 11.5% 10.6% 9.9% 9.9% 9.8% 9.6% 6.3% 4.1% 3
Slide 13: Energy Consumption bound to grow
Energy Consumption bound to grow • Per capita consumption in India is 1/3rd of global average • Per capita consumption expected to double in the next 5 years 1268 1284 1272 • Economic activity will accelerate 1135 1205 • Government envisions India as an industrial hub • Core sector growth will drive
Slide 14: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 13
Slide 15: India's premier technology-led energy marketplace
India’s premier technology-led energy marketplace • Nation wide, Automated and transparent trading platform for physical delivery of electricity, renewables & certificates • Commenced operations in 2008; CERC regulated • Publicly listed company (NSE and BSE) • ISO 9001:2015, ISO 27001:2013, ISO 1400
Slide 16: Benefitting Power Sector….and the nation
Benefitting Power Sector….and the nation • Provides benchmark prices for all electricity transactions • Transparent Mechanism for Price Discovery • High liquidity on exchange has ensured lowest cost and assured supply Truly benefited Indian Power Sector Generation Transmission Distribution Signals f
Slide 17: Our Values
KO 24X7 Power Transparency Flexibility in Power Procurement © Competitive Price Payment Security Cost Saving 16
Slide 18: Robust Eco-system
Robust Eco-system 4400+ 55+ DISTRIBUTION 500+ GENERATORS INDUSTRIES UTILITIES 99% MARKET 99% MARKET 32% CAGR SHARE IN DAM SHARE IN RTM SINCE 2008 The Green Market and the Real-time Markets are poised to build India as a sustainable energy economy. 22-07-2021 17
Slide 19: Most Competitive Prices - Over the years
Most Competitive Prices - Over the years IEX DAM Volume Trader Volume IEX Wt. Avg DAM Price Bilateral Price 70 8 60 60 7 50 49 6 50 47 45 4.32 4.23 3.91 40 4.42 5 40 4.34 4.27 4.30 4.13 3.54 39 3.61 4.03 3.52 4 3.58 3.73 36 36 30 3.47 29 35 2.89 3.46 28 35 34 35 34 3.41 3.15 2.71 2.49 2.93 30 3 28 2
Slide 20: Market Segments
Market Segments Day-Ahead Market • Delivery for next day; Includes cross border trade launched on 21st April 2021 since Jun 2008 • Price discovery: Closed, Double-sided Auction Term-Ahead Contracts • For delivery up to 11 days since Sep 2009 • Intra-day, Day-ahead Contingency, Daily Contracts, Weekl
Slide 21: Growing @32% CAGR since inception
Growing @32% CAGR since inception 74,638 61,124 59,908 55,455 45,146 37,290 44% 28,923 29,894 YoY 21,340 2,616 FY'09 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 YTD FY'22 Source: IEX Data (DAM+TAM+RTM+GTAM+REC) 22-07-2021 Data based on delivery volumes 20
Slide 22: Product-wise Key Statistics
Product-wise Key Statistics DAM + TAM RTM GTAM REC ESCerts Market Share 92% 99.9% 99.9% 76% NA (FY 21) State 29 States 29 States 21 States 29 States 29 States Utilities 5 UTs 4 UTs 3 UTs 5 UTs 5 UTs As on Jun’21 Generators 500+ 149 15 1175 193 As on Jun’21 Industrial Consumers 4400+ 339 34 3475 93 A
Slide 23: New Market Segments : Q1 FY22
New Market Segments : Q1 FY22 REAL TIME MARKET GTAM MARKET ✓Buy : 5947 ✓ Daily Average Buy: 65.35 ✓Buy : 1354 ✓ Daily Average Buy: 14.88 ✓Sell : 10015 ✓ Daily Average Sell: 110.05 ✓Sell : 1642 ✓ Daily Average Sell: 18.04 ✓Cleared : 4635 ✓ Daily Average Cleared: 50.93 ✓Cleared : 937 ✓ Daily Average C
Slide 24: Technology at the Core
Technology at the Core CUSTOMER CENTRIC EFFICIENT STATE OF THE ART Image To be Added • Digital Experience • Security and seamless uptime • National Open Access Registry • Secure Web and Mobile • Comprehensive Product Portfolio • Integration of NOAR access • Longer Duration Contract • Economic Surplu
Slide 25: Driven by customer centricity
Driven by customer centricity S – Self-service web/mobile applications • enable customers' anytime anywhere easy access I – Intelligent process automation • reduce customer effort; insights to enable effective decision making M – Matching engine optimization • increase social welfare P – Product lau
Slide 26: Robust financial performance
Robust financial performance Consolidated Financials Rs Cr 100.33 102.88 81.09 83.97 86.70 61.34 61.52 62.10 Breakup of standalone 42.09 Q1 FY21 Q4 FY21 Q1 FY22 revenues (%) Q1FY21 Q4FY21 Q1FY22 Transaction Fees 77% 88% 83% Total Revenue EBITDA PAT 356.2 Admission and Annual Fees 5% 5% 5% 297.4 289.
Slide 27: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 26
Slide 28: NO LOCKDOWN AT IEX!
NO LOCKDOWN AT IEX! • Supporting distribution companies in supplying 24*7 uninterrupted power • Enabling replacement of costly PPAs through buying on exchange • Launched RTM and GTAM with high availability during the lockdown • Extensive customer engagements and communication drives • Providing roun
Slide 29: Providing significant savings to DISCOMs
Providing significant savings to DISCOMs “Maharashtra discoms turn to energy exchanges, shun costly PPAs” – PTI – April 12, 2020 "We are increasingly buying power from exchanges, which is cheaper than PPA tariffs," an official from state utility Mahavitaran “Andhra Pradesh saves Rs 2,350 crore in po
Slide 30: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 29
Slide 31: Transitioning towards a Futuristic Tech Architecture
Transitioning towards a Futuristic Tech Architecture Automated • Digital Inside Manual Workflow • Open API Integration Digital Mesh • Robotic Process Automation Modular • Service Oriented Architecture Monolithic • Automated Bank Integration Digital Twins Desktop-based All Platforms • Web-based Porta
Slide 32: Customer Experience Transformation
Customer Experience Transformation Platform access beyond 70+ Members • Anytime, Anywhere, Secure Web and Mobile access to 70+ Members, 6000+ Clients, Senior Leaders across Members and Clients, key Stakeholders in the Power Sector Personalized and Deep Data Insights for effective Decision making (Re
Slide 33: Immense growth potential
Immense growth potential • 100% household electrification under SAUBHAGAYA scheme Demand for Electricity • Rapid urbanization - 17 of 20 world’s fastest growing cities in India • Per capita electricity consumption is expected to increase by ~ 40% in the next 4 years • Total capacity likely to phase
Slide 34: Immense growth potential
Immense growth potential • Budget 2021: Proposed Rs 3 lakh crore distribution reform package to promote competition, consumer choice and increase penetration of automation and technology • Draft National Electricity Policy 2021 (NEP) indicating the commitment of the Government to deepen power market
Slide 35: Immense growth potential
Immense growth potential • Efficient price discovery has been the biggest growth driver for exchanges in the past • Discoms can source cheaper power through Exchange to meet shortages Efficient Price discovery • Industries can source competitive power to reduce their input costs • Prices at Exchange
Slide 36: Indian Gas Exchange (IGX)
Indian Gas Exchange (IGX) OUR VISION To lead India’s transition towards a gas-based economy by architecting next generation solutions for natural gas trading and access. 1st natural gas Automated platform 01 trading exchange 02 with cutting edge technology Efficient & transparent 03 market driven pr
Slide 37: IGX Opportunity
IGX Opportunity • Under Paris Climate Agreement, govt commitment to reduce carbon emissions will promote use of Natural Gas • Government’s vision of increasing share of Natural Gas in total energy basket from 6% to 15% by 2030 will increase gas consumption in the economy from current 160 MMSCMD to 6
Slide 38: Way forward
Way forward 1. Expand coverage and market • Launch new products • Advocacy to increase short term market 2. Best in class, futuristic Technology Infrastructure • Enterprise IT, trading platform • Technology & analytics solutions for customers 3. Strengthen the organisation • Capacity building, hi-pe
Slide 39: Thank You
=) INDIAN ENERGY EXCHANGE Thank You ® Oo Mobile App (IEXApp) [email protected] Available on Android and |OS
Slide 40: Indian Energy Exchange announced unaudited financial results for Q1 ended 30 June 2021
INDIAN ENERGY EXCHANGE ANNOUNCED UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED 30 JUNE 2021 Electricity volumes on the Exchange increase 42.9% YoY in Q1 FY’22. PAT grows 47.5% YoY with PAT margin at 60.4%; Revenues increases 26.9% YoY. Nepal joins as the first country commencing the
Slide 41: Power sector highlights
activities. The country saw its highest ever peak demand at 191.5 GW in June 2021. The power consumption growth has soared further in July, with peak demand reaching 200 GW+, the highest ever in India’s history. As of June 2021, installed power capacity at 384 GW saw 3.5% YoY growth. The renewable e
Slide 42: Press release: volumes and market segment performance
lockdowns imposed in several states due to the second wave of the pandemic in India, electricity volumes on the Exchange grew by 42.9% YoY with 21,266 MU. This growth was largely driven by competitive power prices on the Exchange, growing electricity consumption, and vibrant performance of new marke
Slide 43: About IEX and media contacts
and transparency of the power market in India while also enhancing the speed and efficiency of trade execution. The Exchange is ISO Certified for quality management, Information security management and environment management since August 2016. The Exchange is a publicly listed company with NSE and B
Indian Energy Exchange — Q1 FY2022 Earnings Presentation on 6ix