Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q1 FY2023 Earnings Presentation
41 slides from Indian Energy Exchange's earnings presentation, Jul 26, 2022
Slide 1: Exchange filing cover letter: Investor Presentation & Press Release Q1 FY23
IEX INDIAN ENERGY EXCHANGE Dated: July 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 Ba
Slide 2: Investor Presentation – Q1FY'23
Investor Presentation – Q1FY’23
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% 40% 33% Small-scale generation Decentralisation across T&D network FY 2010 FY 2023* FY 2030 Installed Capacity Empowered consumers - Democratisation economic power shift ➢
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 – 404 GW: transmission capacity: ➢ Tariff reforms 211
Slide 7: Installed capacity has grown faster than demand
Installed capacity has grown at a faster pace compared to demand 160 174 199 224 243 275 305 327 344 356 371 382 399 404 10 yr CAGR 133 141 157 161 102 114 123 89 80 70 Capacity1 63 67 52 56 235 236 236 189 211 218 223 226 231 131 152 168 102 113 Capacity growth FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 F
Slide 8: Installed Capacity = 404 GW
Installed Capacity = 404 GW Capacity by source - June’22 Capacity by ownership - June’22 2% 25% 40% 49% 58% 26% Thermal RES Nuclear Central State Private *Renewables include Hydro Power – 12% and RES – 28% 7
Slide 9: Sector Construct
Sector Construct Long-term (86%) (89%) Short-term (14%) Total Consumption 1,390 (FY22): BU 1,374 BU Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 90 days 86.4% 4.4% 7.4% 1.8% Exchanges (Only up to 90 days) Bilateral & Banking ➢ Day Ahead Market, Real Deviation Settlem
Slide 10: Fast growing Exchange Markets
Fast growing Exchange Markets Exchanges (BU) Bilateral (BU) DSM (BU) CAGR: 20.8% CAGR: 1.5% CAGR: 1.1% 67 24 25 25 56 58 60 23 23 101 11.8% -11.3% 12.5% 80 44 YoY YoY YoY 48 54 56 9 4 2 FY18 FY19 FY20 FY21 FY22 FY23* FY18 FY19 FY20 FY21 FY22 FY23* FY18 FY19 FY20 FY21 FY22 FY23* Driven by competition
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% 7% Nordpool Germany UK Netherlands Switzerland Belgium France India Markets are in the range of 30-80% in developed economies. At 7.4% in FY22, India has an opportunity to deepen the power market. 10
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% 54.3% 58.8% exchanges in short-term market 13.6% 11.5% 11.5% 11.9% 10.6% 10.5% 10.7% 10.7% 7.4% 7.0% 6.3% 4.0% 4.2% 4.4% 3.2% 3.6% FY16 FY17 FY18 FY19 FY20
Slide 13: Electricity Growth Drivers
Electricity Growth Drivers India is placed as the most promising economy on the Electricity Consumption (BU) global map: ➢ Industrialization 1,374 1,268 1,284 1,271 1,205 1,135 17.7% ➢ GDP growth of 8-10% expected to drive demand YoY for electricity Growth ➢ Core sector growth will drive electricity
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 7300+ 4600+ 1800+ ➢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
NIEX Our Values <Oy, 24X7 Power Transparency Flexibility in Power Procurement Competitive Price Payment Security Cost Saving 16
Slide 18: Bilateral & Exchange Prices - Over the years
Bilateral & Exchange Prices - Over the years IEX DAM Volume (BU) Trader Volume (BU) IEX Wt. Avg DAM Price (Rs. per kWh) Bilateral Price (Rs. per kWh) 70 65 5 4.23 4.34 4.30 4.32 60 5 60 3.91 4.42 4.40 4.27 4.13 4 3.54 50 49 50 3.73 3.61 4.03 3.52 3.84 3.58 45 4 3.47 3.41 3.15 3.46 40 3 40 2.93 2.89
Slide 19: Market Segments
Market Segments Intraday Market & Contingency Market Segment Integrated Day Ahead Market Since Jul’15 DAM since Jun’08 Intraday Market : hourly and or 15-minute contracts on same Delivery for next day day on rolling basis Price discovery: Closed , Double-sided Auction Day-Ahead Contingency-
Slide 20: 33% CAGR since inception
33% CAGR since inception 33% 1,01,927 74,662 61,124 59,998 10% 55,455 YoY 45,146 37,290 28,923 29,894 23,352 2,616 FY09 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY'22 FY'23* Note: Volume data in billion units. Data based on delivery volumes, DAM vols are based on trading Source: IEX Data (DAM+TAM+RTM
Slide 21: Product-wise Key Statistics
Product-wise Key Statistics DAM + TAM RTM Green Power REC ESCerts Market Share 94.1% 99.9% 77.5% 72% 97%2 (FY22) State Utilities 29 States 29 States 29 States 29 States 29 States As on Jun’22 5 UTs 4 UTs 3 UTs 5 UTs 5 UTs Generators Total Power: 600+ 1227 114 As on Jun’22 Industrial Consumers Total
Slide 22: 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 access ➢ Comprehensive Product Portfolio ➢ Integration of NOAR ➢ Integrated bids across segments ➢ New Products Launched – RTM, ➢ Econom
Slide 23: Driven by customer centricity
Driven by customer centricity S – Self-service web 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 launches •
Slide 24: Robust financial performance
Robust financial performance Consolidated Financials Rs Cr Breakup of standalone Q1FY22 Q4FY22 Q1FY23 revenues (%) 128.4 111.3 113.4 102.9 96.1 86.7 88.4 62.8 69.1 Transaction Fees 83% 83% 82% Admission and Annual Fees 5% 5% 5% Q1FY22 Q4FY22 Q1FY23 484.4 Other Income 12% 12% 13% 417.0 356.2 309.3 28
Slide 25: Customer Testimonials (1/3)
Customer Testimonials (1/3) मैं उर्जा व्यजपजर बजर्जर में 14 सफल वर्षों के ललए आईईएक्स को बधजई दे तज हूँ , मे रज मजननज है लक आईईएक्स भजरत के उर्जा बदलजव को सुलवधजर्नक बनजने में महत्वपूर्ा भू लमकज लनभज रहज है । उत्तरजखण्ड सबसे कुशल और गलतशील तरीके से प्रलतस्पधी मू ल्य की लबर्ली की खरीद के ललए आईईएक्स
Slide 26: Customer Testimonials (2/3)
Customer Testimonials (2/3) We congratulate IEX for completing 14 years in the market. It’s been a great journey in developing the power market & facilitating the green transition in India’s energy basket. We participate regularly in IEX Green Market to meet our energy and RPO needs. The association
Slide 27: Customer Testimonials (3/3)
Customer Testimonials (3/3) On behalf of BSES Yamuna Power Limited, I would like to congratulate team IEX for 14 successful years of the energy trade market in India. With this 14-year-long association with IEX, we have been able to manage our day-to-day power portfolio through the IEX platform whic
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 Indigenous 03 Efficient & transparent market driven pr
Slide 30: Gas market opportunity and IGX highlights
Opportunity Growth in Gas Demand will lead to opportunities for Gas Exchange & Other Stakeholders IGX Highlights ➢ Government’s vision of increasing share of Natural Gas in total energy basket from ~6.3% to 15% by 2030 will increase gas consumption in the economy from current 160 MMSCMD to Q1FY23 50
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 ➢ 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 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 (Real time
Slide 34: Immense growth potential (1/3)
Immense growth potential(1/3) ➢ 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 consump
Slide 35: Immense growth potential (2/3)
Immense growth potential (2/3) ➢ Connectivity and General Network Access to the inter-State Transmission System Regulations (CERC): GNA will rationalize transmission charges for exchange transactions and will further promote deepening of markets. ➢ Draft sharing of ISTS charges and losses regulation
Slide 36: Immense growth potential (3/3)
Immense growth potential (3/3) ➢ Upcoming product launches – Ancillary Market, Capacity Market, Gross Bidding Contract New launches ➢ Derivatives – IEX price to be used as reference ➢ Diversification opportunities – Play in the energy basket of India ➢ Efficient price discovery has been the biggest
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 37
Slide 39: IEX announces unaudited financial results for Q1 ended 30 June 2022
INDIAN ENERGY EXCHANGE (IEX) ANNOUNCES ITS UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED 30 JUNE 2022 ● IEX CULMINATES THE FIRST QUARTER OF FY23 WITH 23.35 BU VOLUME ACROSS ALL MARKET SEGMENTS, DESPITE TOUGH MARKET CONDITIONS; ACHIEVED 10% YOY GROWTH ● THE EXCHANGE ACHIEVED 11% YOY CONSOLI
Slide 40: Business and financial performance highlights
BUSINESS AND FINANCIAL PERFORMANCE HIGHLIGHTS On a consolidated basis, revenue for the quarter increased by 10% YoY, from Rs. 102.9 Cr. in Q1FY'22 to Rs. 113.4 Cr. in Q1FY'23. The PAT grew by 11% YoY from Rs. 62.1 Cr. to Rs. 69.1 Cr. in the quarter. During the quarter, electricity volumes on the Exc
Slide 41: Power sector highlights update
POWER SECTOR HIGHLIGHTS UPDATE The first quarter of fiscal year 2023 saw a significant growth in the industrial and economic activities, leading to an increase in the overall power demand - and subsequent - consumption. The manufacturing PMI increased to 54.7 in April ‘22 as compared to 54 in March
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