Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q2 FY2022 Earnings Presentation
42 slides from Indian Energy Exchange's earnings presentation, Oct 22, 2021
Slide 1: Exchange filing cover letter for investor presentation and press release
INDIAN ENERGY EXCHANGE Dated: October 22, 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 Ban
Slide 2: Investor Presentation – Q2FY'22
Investor Presentation – Q2FY’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 389 GW installed World’s largest network Distribution reforms Power surplus nation capacity: underway: • 102 GW renewables Inter-regional • Tariff reforms Peak demand at • 48% private transmission capacity: • Co
Slide 7: Installed capacity has grown at a faster pace compared to demand
Installed capacity has grown at a faster pace compared to demand 382 389 10 Yr CAGR 327 344 356 371 Capacity 298 224 243 268 69 78 87 94 102 growth of 57 199 39 8% and CAPACITY (GW) 160 174 29 32 28 16 18 25 234 generation 211 218 223 226 231 235 102 113 131 152 168 189 increase of FY'10 FY'11 FY'12
Slide 8: Total Installed Capacity = 389 GW
Total Installed Capacity = 389 GW 98 102 187 47 234 104 7 Thermal Nuclear Hydro RES Central State Private 21-10-2021 7
Slide 9: Power Sector construct
Power Sector construct Long-term (89%) Short-term (11%) 1,390 BU Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 11 days 87.2% 4.4% 6.4% 2.0% 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) 80 67 58 25 56 24 23 23 54 56 48 44 15.2 9.7 4.0 FY 18 FY 19 FY 20 FY 21 YTD FY 22 FY 18 FY 19 FY 20 FY 21 YTD FY 22 FY 18 FY 19 FY 20 FY 21 YTD FY 22 Driven by competition and flexible procurement, the Exchange markets constitute
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 30.2% 34.4% 37.2% 36.9% 41.2% 54.5% 52.4% exchanges in short-term market Share of Exchange in Total Consumption Share of ST market in total consumption 12.8% 11.5% 10.6% 9.9% 9.8% 9.9% 9.6%
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 1205 1135 • Government envisions India as an industrial hub 13% YoY • Core sector growth wi
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 21-10-2021
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. 21-10-2021 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 3.30 3.47 36 29 35 3.46 28 35 34 35 3.41 3.15 3.23 30 2.89 2.71 2.49 34 2.93
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 47.4% 61,124 59,908 55,455 YoY 45,146 47,242 37,290 28,923 29,894 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) 21-10-2021 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 Sep’21 Generators Total Power: 500+ 1178 215 As on Sep’21 Industrial Consumers Total Power : 44
Slide 23: New Market Segments : Q2 FY22
New Market Segments : Q2 FY22 REAL TIME MARKET GTAM MARKET ✓Buy : 7408 ✓ Daily Average Buy: 81 ✓Buy : 2389 ✓ Daily Average Buy: 25.96 ✓Sell : 10984 ✓ Daily Average Sell: 121 ✓Sell : 2072 ✓ Daily Average Sell: 22.52 ✓Cleared : 5300 ✓ Daily Average Cleared: 58 ✓Cleared : 1690 ✓ Daily Average Cleared:
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 122.3 107.0 102.9 86.7 78.7 77.7 63.3 62.8 44.3 Breakup of standalone revenues (%) Q2FY21 Q1FY22 Q2FY22 Transaction Fees 84% 83% 86% Admission and Annual Fees 6% 5% 4% Q2FY21 Q1FY22 225.2 Q2FY22 Other Income 10% 12% 10% 193.7 Total 100% 100%
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 announces unaudited financial results for Q2 ended 30 September 2021
INDIAN ENERGY EXCHANGE ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED 30 SEPTEMBER 2021 Electricity volume sees 58% YoY growth in Q2 FY’22 PAT increased by 74.5% YoY. The Board of Directors considered two bonus shares for each equity share. Exchange receives CERC approval
Slide 41: Press release: installed capacity and policy developments
In September 2021, the installed power generation capacity reached 389 GW seeing 4.2% YoY growth. The renewable energy capacity reached 101.5 GW from 89.2 GW in the fiscal year 2020, achieving 13.8% YoY growth. The rapidly expanding renewable capacity underpins the energy transition underway and hei
Slide 42: Press release: Indian Gas Exchange and outlook
On the gas market front, the Indian Gas Exchange witnessed an increase in both volume and participation. During the quarter, IGX traded approximately 10 lakh MMBTU in terms of cumulative volume. Ministry of Petroleum & Natural Gas (MOPNG) vide its Office Memorandum dated 19th August 2021 has provide
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