Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q3 FY2022 Earnings Presentation
41 slides from Indian Energy Exchange's earnings presentation, Jan 25, 2022
Slide 1: Exchange filing cover letter
Dated: January 25, 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- 400001 Bandra (E), Mumbai-400 051
Slide 2: Investor Presentation – Q3FY'22
Investor Presentation – Q3FY’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 IGX 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 50% 33% 38% Small-scale generation Decentralisation across T&D network FY 2010 FY 2022 (Dec) FY 2030 Installed Capacity Empowered consumers - ➢ Share
Slide 5: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX: Who we are IGX Way forward 4
Slide 6: Electricity Value Chain: Key Highlights
Electricity Value Chain: Key Highlights Generation Transmission Distribution Consumption Generation de-licensed World’s largest network Distribution reforms Power surplus nation activity underway: ➢ Inter-regional ➢ Peak demand at ➢ Installed Capacity: transmission capacity: ➢ Tariff reforms 200.5 G
Slide 7: Generation: installed capacity growth vs demand
Installed capacity has grown at a faster pace compared to demand 160 174 199 224 243 275 305 327 344 356 370 382 393 10 yr CAGR 123 133 141 151 102 114 89 80 70 Capacity 67 52 56 63 231 235 235 Capacity growth 189 211 218 223 226 131 152 168 of 8% and 102 113 generation FY'10 FY'11 FY'12 FY'13 FY'14
Slide 8: Total Installed Capacity = 393 GW
Total Installed Capacity = 393 GW Dec’21 Dec’21 25% 38% 48% 60% 27% 2% Thermal Nuclear RES Central State Private *Renewables include: Hydro Power – 12% and RES – 27%
Slide 9: Power Sector construct
Power Sector construct Long-term (87%) (89%) Short-term (13%) 501 BU** 1,390 BU Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 11 days 86.8% 4.9% 6.5% 1.8% Exchanges Bilateral & (Only up to 11 days) Long-term PPA Banking ➢ Day Ahead Market, Term Deviation Settlement/ T
Slide 10: Fast growing Exchange Markets
Fast growing Exchange Markets Exchanges (BU) Bilateral (BU) DSM (BU) 18.6% -8.3% -1.8% 80 67 24 25 56 58 23 23 54 56 44 48 30 23 9 FY18 FY19 FY20 FY21 YTD'22 FY18 FY19 FY20 FY21 YTD'22 FY18 FY19 FY20 FY21 YTD'22 Driven by competition and flexible procurement, the Exchange markets constitute >50% of
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.
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% 49.3% exchanges in short-term market 13.2% 11.5% 11.5% 10.6% 10.5% 10.7% 10.7% 6.3% 6.5% 4.0% 4.2% 4.4% 3.2% 3.6% FY16 FY17 FY18 FY19 FY20 FY21 YTD'22 Shar
Slide 13: Energy Consumption bound to grow
Energy Consumption bound to grow ➢ Per capita consumption in India is 1/3rd of global average 9.3% 1205 1268 1284 1272 YoY ➢ Per capita consumption expected to double in the 1135 next 5 years 1026 ➢ Economic activity will accelerate ➢ Government envisions India as an industrial hub ➢ Core sector gro
Slide 14: In this presentation
In this presentation: Sector in transformation 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 4400+ 1500+ 500+ ➢Commenced operations in 2008; CERC Industries RE Generators & Generators Obligated Entities re
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
NIEX Our Values <Oy, 24X7 Power Transparency Flexibility in Power Procurement Competitive Price Payment Security Cost Saving
Slide 18: 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 45 4.23 4.30 4.32 3.91 40 4.42 5 40 4.34 3.46 4.27 34 4.13 3.54 3.52 3.40 3.73 29 3.61 4.03 4 3.58 3.47 28 3.15 3.23 30 3.41 2.71 2.49 2.93 22 2.89 3 19 20 14 2 12 10 1
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: Growing @32% CAGR since inception
Growing @32% CAGR since inception 43% YoY 32% 74,662 74,895 61,124 59,998 55,455 45,146 37,290 28923 29,894 2616 FY09 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD FY'22 Note: Data based on delivery volumes, DAM vols are based on trading YTD is upto December 2021 Source: IEX Data (DAM+TAM+RTM+GTAM+REC
Slide 21: Product-wise Key Statistics
Product-wise Key Statistics DAM + TAM RTM Green Power REC ESCerts Market Share 92% 99.9% 99.9% 76% NA (FY 21) State Utilities 29 States 29 States 29 States 29 States 29 States As on Dec’21 5 UTs 4 UTs 3 UTs 5 UTs 5 UTs Generators Total Power: 600+ 1189 111 As on Dec’21 Industrial Consumers Total Pow
Slide 22: New Market Segments: Q3 FY22
New Market Segments : Q3 FY22 REAL TIME MARKET GREEN TERM AHEAD MARKET ✓ Buy : 7380 ✓ Daily Average Sell : 97 ✓ Buy : 1655 ✓ Daily Average Buy : 18 ✓ Sell : 8968 ✓ Daily Average Cleared : ✓ Sell : 1137 ✓ Daily Average Sell : 11 ✓ Cleared : 4823 52 VOLUME (MU) VOLUME (MU) ✓ Cleared : 866 ✓ Daily Aver
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 Q3FY21 Q2FY22 Q3FY22 revenues (%) 122.3 130.8 107.0 112.1 96.1 80.5 77.7 80.4 58.1 Transaction Fees 84% 86% 86% Admission and Annual Fees 4% 4% 4% Q3FY21 Q2FY22 Q3FY22 356.0 Other Income 12% 10% 10% 305.7 255.9 205.0 22
Slide 26: 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, GTAM, GDAM and Cross Border Trade with high availability during the covid crisis ➢ Extensive customer engagements and communi
Slide 27: Towards a sustainable energy future
Towards a sustainable energy future
Slide 28: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX: Who we are IGX Way forward 27
Slide 29: 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 01 1st natural gas trading exchange 02 Automated platform with cutting edge technology Indigenous 03 Efficient & transparent market
Slide 30: 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 5
Slide 31: In this presentation
In this presentation: Sector in transformation 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 ➢ Automated Bank Integration Digital Twins ➢ 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 ➢ 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 o
Slide 35: 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 36: Immense growth potential
Immense growth potential ➢ Exchange provides flexibility to purchase power as per requirement throughout the year ➢ Option available to Buy/Sell different quantum for each 15 mins time block. Minimum bid Flexibility quantum can be as low as 0.1 MW ➢ Availability of power within 1hour of requirement
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: 0120 4648100 Email: [email protected] Website: www.iexindia.com
Slide 39: Indian Energy Exchange announces unaudited financial results for Q3 ended 31 December 2021
INDIAN ENERGY EXCHANGE ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED 31 DECEMBER 2021 IEX achieves 37% YoY volume growth in Q3 FY’22. Profit after tax grows 39% YoY. Exchange announces interim dividend of 100%. Subsidiary company – IGX, achieves breakeven in Q3 FY’22, wit
Slide 40: to Rs 79.9cr in Q3FY’22, with a margin of 63.1%. The company has announced
to Rs 79.9cr in Q3FY’22, with a margin of 63.1%. The company has announced an interim dividend of 100% per equity share. During the quarter, volumes on the Exchange grew by 37% YoY with 27.6 BU volumes traded versus 20.1BU in Q3 FY’21. The growth in volumes was driven by substantial increase in elec
Slide 41: The Central Electricity Regulatory Commission also issued the draft Deviation Settlement Mechanism (DSM) and
The Central Electricity Regulatory Commission also issued the draft Deviation Settlement Mechanism (DSM) and Related Matters Regulations, 2021, linking the DSM charges to the time block-wise price discovered on the Exchange. Implementation of this initiative will help to further deepen the real-time
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