Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q4 FY2022 Earnings Presentation
42 slides from Indian Energy Exchange's earnings presentation, Apr 28, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation & Press Release
a I EX INDIAN ENERGY EXCHANGE Dated: April 28, 2022 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- 40000
Slide 2: Investor Presentation – Q4FY'22
Investor Presentation – Q4FY’22 Building India’s Sustainable & Efficient Energy Future 1
Slide 3: In this presentation
In this presentation: Sector in transition Electricity value chain IEX: Who we are IGX Way forward 2
Slide 4: Sector in transition
Sector in transition Shifting Energy Mix Deployment of low-carbon Decarbonisation technologies - wind and solar % Renewable 50% 39% 33% Small-scale generation Decentralisation across T&D network FY 2010 FY 2022 FY 2030 Installed Capacity Empowered consumers - Democratisation economic power shift 1
Slide 5: In this presentation
In this presentation: Sector in transition Electricity value chain IEX: Who we are IGX Way forward 4
Slide 6: Electricity Value Chain
Electricity Value Chain Generation Transmission Distribution Consumption Generation - de-licensed World’s largest network Distribution reforms Large installed capacity base activity underway: Inter-regional Peak demand at Installed Capacity: transmission capacity: Tariff reforms 200.5 GW 102
Slide 7: Generation: installed capacity has grown faster than demand
Installed capacity has grown at a faster pace compared to demand 160 174 199 224 243 275 305 327 344 356 371 382 399 10 yr CAGR 133 141 157 102 114 123 89 80 70 Capacity* 63 67 52 56 235 236 189 211 218 223 226 231 131 152 168 102 113 Capacity growth FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 F
Slide 8: Installed Capacity = 399 GW
Installed Capacity = 399 GW Capacity by type - Mar’22 Capacity by ownership - Mar’22 25% 39% 49% 59% 26% 2% Thermal Nuclear RES Central State Private *Renewables include: Hydro Power – 12% and RES – 27%
Slide 9: Sector Construct
Sector Construct Long-term (86%) (89%) Short-term (14%) 1,197 1,390BU* BU Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 11 days 85.9% 4.6% 7.6% 1.9% Exchanges Bilateral & (Only up to 11 days) Banking Day Ahead Market, Term Deviation Settlement/ Long-term PPA Transac
Slide 10: Fast growing Exchange Markets
Fast growing Exchange Markets Exchanges (BU) Bilateral (BU) DSM (BU) 17.7% -0.4% -1.1% 92 80 67 25 56 58 55 24 54 56 44 48 23 23 23 FY18 FY19 FY20 FY21 FY22* FY18 FY19 FY20 FY21 FY22* FY18 FY19 FY20 FY21 FY22* Driven by competition and flexible procurement, the Exchange markets constitute >50% of po
Slide 11: Immense potential to deepen India's Power Market
Immense potential to deepen India’s Power Market 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.
Slide 12: Exchanges share in short term market
Exchanges share in short term market Exchange Market and ST Market - % of Total Consumption – India Share of 30.2% 34.4% 37.2% 36.9% 41.2% 54.5% 54.0% exchanges in short-term market 13.6% 11.5% 11.5% 10.6% 10.5% 10.7% 10.7% 7.3% 6.3% 4.0% 4.2% 4.4% 3.2% 3.6% FY16 FY17 FY18 FY19 FY20 FY21 FY22* Share
Slide 13: Electricity Growth Drivers
Electricity Growth Drivers India is placed as the most promising economy on the 7.8% YoY global map: Industrialization 1,370 1,268 1,284 1,271 1,205 1,135 GDP growth of 8-10% expected to drive demand for electricity Core sector growth will drive electricity consumption Rapid urbanization 1
Slide 14: In this presentation
In this presentation: Sector in transition Electricity value chain IEX: Who we are IGX Way forward 13
Slide 15: India's premier technology-led energy marketplace
India’s premier technology-led energy marketplace Nation wide, automated and transparent Robust Ecosystem trading platform for physical delivery of electricity, renewables & certificates 7000+ 4400+ 1500+ Commenced operations in 2008; CERC Registered Commercial & RE Generators & participants Indus
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 Lower p
Slide 17: Our Values
QIEX Our Values cS <Oy, 24X7 Power Transparency Flexibility in Power Procurement Competitive Price Payment Security Cost Saving
Slide 18: Bilateral & Exchange Prices - Over the years
Bilateral & Exchange Prices - Over the years 70 IEX DAM Volume (BU) Trader Volume (BU) IEX Wt. Avg DAM Price (Rs. per kWh) Bilateral Price (Rs. per kWh) 8 60 59 60 7 50 49 6 50 45 4.23 4.30 4.32 3.91 40 4.42 5 40 4.34 3.46 4.04 4.27 34 4.13 3.54 3.52 3.73 29 3.61 4.03 4 3.58 3.47 28 3.15 3.75 30 3.4
Slide 19: 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 20: 33% CAGR since inception
33% CAGR since inception 37% YoY 33% 1,01,927 74,662 61,124 59,998 55,455 45,146 37,290 28923 29,894 2616 FY09 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY'22 Note: Volume data in billion units. Data based on delivery volumes, DAM vols are based on trading Source: IEX Data (DAM+TAM+RTM+GTAM+GDAM+REC+
Slide 21: Product-wise Key Statistics
Product-wise Key Statistics DAM + TAM RTM Green Power REC ESCerts Market Share 94.2% 99.9% 80.0% 72% 97%2 (FY 22) State Utilities 29 States 29 States 29 States 29 States 29 States As on Mar’22 5 UTs 4 UTs 3 UTs 5 UTs 5 UTs Generators Total Power: 600+ 1216 112 As on Mar’22 Industrial Consumers Total
Slide 22: New Market Segments: Q4 FY22
New Market Segments : Q4 FY22 REAL TIME MARKET GREEN TERM AHEAD MARKET Buy : 6926 Daily Average Sell : 86 Buy : 559 Daily Average Buy : 6 Sell : 7785 Daily Average Cleared : Sell : 551 Daily Average Sell : 5 Cleared : 4477 50 VOLUME (MU) VOLUME (MU) Cleared : 466 Daily Average
Slide 23: Technology at the Core
Technology at the Core CUSTOMER CENTRIC EFFICIENT STATE OF THE ART Digital Experience Security and seamless uptime National Open Access Registry Secure Web and Mobile access Comprehensive Product Portfolio Integration of NOAR Integrated bids across segments New Products Launched – RT
Slide 24: 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 25: Robust financial performance
Robust financial performance Consolidated Financials Rs Cr Breakup of standalone Q4FY21 FY21 Q4FY22 FY22 revenues (%) 130.8 128.4 112.1 111.3 100.3 83.9 80.4 88.4 61.5 Transaction Fees 88% 84% 83% 84% Admission and Annual Fees 5% 5% 5% 5% Q4FY21 Q3FY22 Q4FY22 484.4 Other Income 7% 11% 12% 11% 417.0
Slide 26: No lockdown at IEX!
No lockdown at IEX! Accessible 24*7 to facilitate uninterrupted power with seamless connectivity and high security Enabling replacement of costly PPAs through buying on exchange Launched Real Time Market, Green Term Ahead Market, Green Day Ahead Market and Cross Border Trade with high availabi
Slide 27: Towards a sustainable energy future
Towards a sustainable energy future
Slide 28: In this presentation
In this presentation: Sector in transition Electricity value chain IEX: Who we are IGX Way forward 27
Slide 29: Indian Gas Exchange
Indian Gas Exchange VISION To lead India’s transition towards a gas-based economy by architecting next generation solutions for natural gas trading and access 01 1st natural gas trading exchange 02 Automated platform with cutting edge technology 03 Efficient & transparent market driven price discove
Slide 30: Opportunity
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 500+
Slide 31: In this presentation
In this presentation: Sector in transition Electricity value chain IEX: Who we are IGX Way forward 30
Slide 32: 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 Digital Twins Automated Bank Integration Web-based Portal Desktop-based All Platform
Slide 33: 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
Slide 34: Immense growth potential
Immense growth potential Expected growth of 8-10% in GDP anticipated to further drive demand for electricity 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
Slide 35: Immense growth potential: policy and regulatory initiatives
Immense growth potential CERC approved the Procedure for Short Term Open Access in inter-State Transmission System for implementation of National Open Access Registry (NOAR) which will enable automation, seamless processes, transmission allocation, and greater efficiency in the power market In D
Slide 36: 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 37: 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 38: Thank you
Thank you @IndianEnergy @indian-energy @IEX_India_ ExchangeLtdIEX -exchange-limited Phone: +91-120 4648100 Email: [email protected] Website: www.iexindia.com
Slide 39: Press release: audited financial results Q4 & FY22
INDIAN ENERGY EXCHANGE ANNOUNCES AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER & YEAR ENDED MARCH 31, 2022 ● IEX CULMINATES FY22 WITH 102 BU VOLUME ACROSS ALL MARKET SEGMENTS; ACHIEVING 37% YOY GROWTH ● THE EXCHANGE ACHIEVED 50% YOY CONSOLIDATED PAT GROWTH IN FY 22 ● THE BOARD OF DIRECTORS HAVE A
Slide 40: Business and financial performance highlights
BUSINESS AND FINANCIAL PERFORMANCE HIGHLIGHTS The revenue for the fourth quarter for the fiscal year 2022 increased by 28% from Rs. 100.3 Cr. in Q4FY'21 to Rs. 128.4 Cr. The Profit after Tax (PAT) increased from Rs 60.8 Cr to Rs 88.4 Cr., seeing 45% YoY growth. Total traded volume across all market
Slide 41: Policy and regulatory updates
POLICY AND REGULATORY UPDATES The Central Electricity Regulatory Commission approval to the procedure for implementation of the National Open Access Registry will enable automation, increased efficiency and transparency in several market processes making them seamless, enabling automated transmissio
Slide 42: About IEX
ABOUT IEX IEX is India’s premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The exchange platform enables efficient price discovery and increases the accessibi
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