Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Investor Presentation (February 2020)
21 slides from Indian Energy Exchange's investor presentation, Feb 11, 2020
Slide 1: Indian Energy Exchange – Exchange filing cover letter
IEX INDIAN ENERGY EXCHANGE Dated: February 11, 2020 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
Slide 2: Investor Presentation Q3'20
Investor Presentation -Q3’20 For Public Use
Slide 3: In this presentation
IEX : Who we are Sector transformation In this presentation Electricity value chain & Power market structure Way forward
Slide 4: Who we are
Who we are • Nationwide automated platform providing a competitive and transparent VISION marketplace for physical delivery of electricity • Commenced operations in 2008, CAGR 35%, CERC regulated Create marketplaces for efficient use of the energy resources • India’s leading power exchange, Market S
Slide 5: 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 6: Robust financials & operational excellence
Robust financials & operational excellence Revenue Operating Cash Profit (In Rs Crore) 145 Q3: 45.8 Q3: 69.4 85 121 133 H2 74 H2 59 H1 H1 123 149 148 90 95 112 58 68 F Y1 7 FY1 8 FY1 9 H1 FY2 0 F Y1 7 F Y1 8 F Y1 9 H1 F Y2 0 EBITDA PAT 118 Q3: 56.7 110 H2 80 Q3: 41.2 92 68 H2 H1 58 86 101 125 123 64
Slide 7: In this presentation
IEX : Who we are Sector transformation In this presentation Electricity value chain & Power market structure Way forward
Slide 8: Sector transformation drivers
Sector transformation drivers Deployment of low-carbon Small-scale generation across Decarbonization technologies - wind and solar. T&D network Decentralization Outlook: Outlook: • Renewables to become leading • RE a threat to centralized energy sources energy production • Emerging new tech like hyb
Slide 9: In this presentation
IEX : Who we are Sector transformation In this presentation Electricity value chain & Power market structure Way forward
Slide 10: Electricity value chain
Electricity value chain CAGR (%) CAPACITY (GW) Share of REN* 305 327 344 356 369 18.8% 23% REN FY'16 FY'17 FY'18 FY'19 FY'20 (YTD Dec'20) 6.7% Thermal Nuclear Hydro RES GENERATION (BU) Generation Transmission Distribution Energy 1168 1236 1303 1372 De-licensed is licensed licensed deficit 1048 10% d
Slide 11: Power market structure
Power market structure Long Term (89.4%) Short Term (10.6%) (3Yr CAGR: 8%; 1H’20: -1.7%) Bilateral (BU) 1,372 BU (incl REN)* OTC: Exchanges: Up to 25 years Real Time Intraday to 1 year Intraday – 11 days 67 -5.8% 55 56 57.5% -30.5% 44 47 1,226.5 BU 66.5 BU 53.5 BU 25.1 BU 34 40 21 17 19 21 23 89.4%
Slide 12: Electricity consumption set to increase
Electricity consumption set to increase • India a third of global average in per capita consumption • Economic activity will accelerate • Government envisions India as a $5tn economy by FY’25 • Manufacturing contribution up from 15% to 25% • Core sector growth will drive electricity consumption • Ra
Slide 13: Markets have immense potential
Markets have immense potential Per Capital Electricity Consumption (KWh)2 • Electricity demand grew 5.6% in the last 3 years 12,994 • India’s per capita electricity demand is 1/3rd global average; projected to increase 40% in next 5 years 6,940 7,035 6,603 • ~ 45 GW of PPA’s retiring in the next 8 y
Slide 14: In this presentation
IEX : Who we are Sector transformation In this presentation Electricity value chain & Power market structure Way forward
Slide 15: 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 16: Expand coverage and market
Expand coverage and market New Product Launches Tech based • Real time electricity market • Smart Power Procurement • Cross Border Trade • Analytics • Longer Duration Contracts • New Product Development • Green TAM • Exchange based Ancillary Market • Gross Bidding Open Access + DISCOM Maximization
Slide 17: Technology in transformation
Technology in transformation Automated Digital • Digital Inside Manual Workflow • Open API integration Mesh • Robotic Process Automation Modular Digital • Service Oriented Architecture Monolithic • Automated Bank Integration Twins Desktop Based All Platforms • Web Based Portal • Trading App • Custom
Slide 18: Smart Product/Bids
Smart Product/Bids Standard Intra-Day Minimum Day Ahead Income Contract Condition TAM Single Bid Load Gradient Daily Bid (Term Ahead Market) MIC (Schedule Weekly Stop Condition) Day Ahead market (DAM) REC Standard Real Time Market (RTM) Parent Child Reverse Auction LDC Block Bid Minimum Fill Quantit
Slide 19: Customer Experience
Customer Experience 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 Create effective solutions
Slide 20: Gas Exchange
Gas Exchange • GoI policy targets to increase share of natural gas in India’s energy basket from 6.5% to 15% in 5 years. GoI vision of gas • This would lead to Indian Gas market growing 2.5X (166 to 380 MMSCMD) by 2030. based economy • A robust gas trading exchange enabling seamless transactions can
Slide 21: Thank You
Thank You
Indian Energy Exchange — Investor Presentation (February 2020) on 6ix