Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q3 FY2021 Earnings Presentation
37 slides from Indian Energy Exchange's earnings presentation, Feb 10, 2021
Slide 1: Stock exchange filing cover letter for Investor Presentation Q3 FY2021
( 1"'"") 9 INDIAN ENERGY EXCHANGE Dated: February 10, 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-
Slide 2: Investor Presentation – Q3 FY'21
Investor Presentation – Q3 FY’21 Leading India’s Energy Transformation 10-02-2021 Version 1.0 1
Slide 3: Sector in transformation; Electricity value chain; IEX: Who we are
Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward
Slide 4: Energy Sector is rapidly transforming
Energy Sector is rapidly transforming Deployment of low- Small-scale Decarbonisation Decentralisation carbon generation technologies - wind across T&D and solar network Intelligent CS Empowered Digitisation Democratisation and Apps to consumers - optimise plants economic power and grid shift 10-02-2
Slide 5: Shifting energy mix
Shifting energy mix Hybridization requires tech enabled apps and automation Total Installed Capacity >> ~370 GW ~500 GW ~800 GW Bio-Power , 3% Solar , 9% Bio- Power Solar WInd , 2% 20% Therma 10% Solar 36% l Small 35% Hydro , Therm Wind al 1% Hydro , Thermal , Power 53% 12% Nuclear 62% 12% Wind 2% S
Slide 6: Sector in transformation; Electricity value chain; IEX: Who we are
Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward
Slide 7: Electricity Value Chain: Key Highlights
Electricity Value Chain: Key Highlights Generation Transmission Distribution Consumption 375 GW installed World’s largest network Distribution licensed Power surplus nation capacity: • 90 GW renewables Interstate transmission: Distribution reforms Peak demand at • 47% private 8094 circuit kms underw
Slide 8: Generation: India's installed capacity
India’s installed capacity Thermal Nuclear Hydro RES 231 231 226 223 218 211 generation has been 4 Yr CAGR (%) growing at 5% CAGR vs CAPACITY (GW) 4.3% growth in total 17.3% 5% 90 87 78 69 generation in the last 57 46 46 46 45 45 44 43 4 years 7 7 7 7 7 6 FY '1 6 F Y '1 7 F Y '1 8 F Y '1 9 F Y '2 0
Slide 9: Total Installed Capacity = 375 GW
Total Installed Capacity = 375 GW Central State Renewable 94 GW 104 GW 91 GW Hydro 46 GW Thermal 232 GW Private 177 GW Nuclear 7 GW 10-02-2021 Version 1.0 8
Slide 10: Power Sector construct
Power Sector construct Long-term (90%) Short-term (10%) 1,381 BU (incl REN)* Bilateral: Exchanges: Up to 25 years Real Time Less than 1 year Intra-day – 11 days 1,244 BU 58 BU 56 BU 23 BU 90.0% 4.2% 4.1% 1.7% Exchanges (Only up to 11 Bilateral & days) Deviation Banking ➢DAC Settlement/ Long-term PPA
Slide 11: Fast growing Exchange Markets
Fast growing Exchange Markets Exchanges (BU) Bilateral (BU) DSM (BU) 56 67 58 25 56 24 23 (0.6)% 54 26.3% (40.6)% YoY YoY YoY 16 48 47.47 26 FY18 FY'19 FY'20 YTD Nov'21 FY18 FY19 FY'20 YTD Nov'21 FY18 FY19 FY'20 YTD Nov'21 Driven by competition and flexible procurement, the Exchange markets constitu
Slide 12: Deepening India's Power Markets
Deepening India’s Power Markets 91% 49% 47% 39% 34% 23% 15% 5% Nordpool Germany UK Netherlands Switzerland Belgium France India Markets are in the range of 30-80% in developed economies. At 5%, India has an opportunity to deepen the power market. Source: CRISIL Study 11
Slide 13: Exchange Market and ST Market - % of Total Generation
Exchange Market and ST Market - % of Total Generation (incl. RE) – India Share of exchanges in short-term market 30.2% 34.4% 37.2% 36.9% 41.2% 53.2% Share of exchanges in total generation Share of ST market in total generation 10.7% 10.6% 9.9% 9.9% 9.8% 9.6% 5.7% 4.1% 3.9% 3.6% 3.3% 2.9% FY16 FY17 F
Slide 14: 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 5-6 years 1284 1268 1205 1091 1135 • Economic activity will accelerate 939 5 Yr CAGR (%) • Government envisions India as an industrial hub • Core sect
Slide 15: Sector in transformation; Electricity value chain; IEX: Who we are
Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward
Slide 16: 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 17: Benefitting Power Sector and the nation
Benefitting Power Benefitting Power Sector….and Sector….andthe thenation 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 Generat
Slide 18: Our Values
Our Values 10-02-2021 Version 1.0 17
Slide 19: Robust Eco-system
Robust Eco-system 4000+ 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. 10-02-2021 Version 1.0 18
Slide 20: Most Competitive Prices - Over the years
Most Competitive Prices - Over the years IEX Volume Trader Volume IEX Wt. Avg Price Bilateral Price 60 8 54 52 7 50 46 45 47 6 41 40 4.79 4.74 4.34 4.27 4.32 4.13 39 5 36 4.23 36 4.30 35 3.61 4.03 293.7335 28 35 34 34 3.75 30 3.56 3.58 3.46 3.54 4 3.47 30 28 23 2.71 3.41 27 2.89 2.60 3 20 2.49 14 13
Slide 21: Market Segments
Market Segments Day-Ahead Market • Delivery for next day 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, Weekly Contracts Continuous Real-Time Market • Delivery within
Slide 22: Growing @32% CAGR since inception
Growing @32% CAGR since inception 52,168 53,881 51,540 46,215 40,528 34,287 28,923 28,347 2,616 FY'09 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 YTD Dec FY'21 *Till December 2020 Source: IEX Data 10-02-2021 Version 1.0 (DAM+TAM+RTM+GTAM) 21
Slide 23: Product-wise Key Statistics
Product-wise Key Statistics DAM + TAM RTM GTAM REC ESCerts Market Share 96% 99% 100% 76% 100% (FY 20-21) State 29 States 28 States 19 States 29 States 29 States Utilities 5 UTs 4 UTs 3 UTs 5 UTs 5 UTs 520 200 7 408 183 Generators Industrial 4377 330 16 2989 97 Consumers >162,000 MWh > 26,649 MWh > 4
Slide 24: Technology at the Core
Technology at the Core Image To be Added Customer Centric Efficient State of the Art • Intuitive Design • Efficient Matching Algorithm • Analytics • Secure • Automation • Future ready • Responsive • Low Latency • Highly Scalable Customer survey Global Standard Algorithm (MILP, NSide) Forecasting too
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: Recent activities driving customer experience
Recent activities driving customer experience 1. Launch of API based bidding for RTM. To be extended to other products 2. To launch a web based platform 3. Enhancements to existing products - new bid types, flexible contracts 4. Automated carry forward of un-cleared bids from the DAM to TAM 5. To la
Slide 27: Robust financial performance
Robust ROBUSTfinancial performance FINANCIAL NUMBERS Consolidated Financials Rs Lacs 9,609 YTD YTD 7,871 8,045 Breakup of standalone Q3 FY Q3 FY 6,942 5,675 6,325 5,814 FY FY 4,169 4,433 revenues (%) 2020 2021 2020 2021 Transaction Fees 80% 80% 84% 82% Q3FY20 Q2FY21 Q3FY21 Revenue EBITDA PAT 25,590
Slide 28: Sector in transformation; Electricity value chain; IEX: Who we are
Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward
Slide 29: IEX extending support during the crisis
IEX extending support during the crisis EXTENDING SUPPORT DURING COVID CRISIS • Enabling replacement of costly PPAs through buying on exchange • Supporting distribution companies in supplying 24*7 uninterrupted power • Extensive customer engagements and communication drives • Providing round-the-clo
Slide 30: Providing significant savings to DISCOMs
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 “
Slide 31: Sector in transformation; Electricity value chain; IEX: Who we are
Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward
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 Desktop-based All Platforms • Web-based Porta
Slide 33: Company Growth Drivers
Company Growth Drivers Per capita electricity consumption is expected to double in the next 5-6 years. Demand for Electricity ~17GW of thermal capacity likely to retire by FY’22 and another ~26G Phasing out of Old Plants likely to retire by FY’ 27. No New PPAs No new long-term PPAs have been signed
Slide 34: Way forward
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 bui
Slide 35: Indian Gas Exchange – IGX
Indian Gas Exchange – IGX A giant leap towards energy market diversification. 10-02-2021 Version 1.0 34
Slide 36: IGX vision for a gas-based economy
IGX envision to lead India’s transition towards a gas-based economy by architecting next generation solutions for natural gas trading and access. The indigenously discovered competitive gas prices will facilitate demand growth, drive development and investments in upstream and downstream parts of th
Slide 37: Thank you
Thank you 10-02-2021 Version 1.0 36
Indian Energy Exchange — Q3 FY2021 Earnings Presentation on 6ix