Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q4 FY2022 Earnings Presentation
38 slides from Indian Energy Exchange's earnings presentation, Apr 29, 2022
Slide 1: Exchange filing cover letter
Dated: April 29, 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 S
Slide 2: Investor Presentation – Q4FY'22
Investor Presentation – Q4FY’22 Building India’s Sustainable & Efficient Energy Future
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% 39% 33% Small-scale generation Decentralisation across T&D network FY 2010 FY 2022 FY 2030 Installed Capacity Empowered consumers - Democratisation economic power shift ➢ 1
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: transmission capacity: ➢ Tariff reforms 200.5 GW 102
Slide 7: Generation: installed capacity growth vs demand
Installed capacity has grown at a faster pace compared to demand 160 174 199 224 243 275 305 327 344 356 371 382 399 10 yr CAGR 133 141 157 102 114 123 89 80 Capacity* 67 70 56 63 52 211 218 223 226 231 235 236 152 168 189 102 113 131 Capacity growth FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 F
Slide 8: Installed Capacity = 399 GW
Installed Capacity = 399 GW Capacity by type - Mar’22 Capacity by ownership - Mar’22 25% 39% 49% 59% 26% 2% Thermal Nuclear RES Central State Private *Renewables include: Hydro Power – 12% and RES – 27% 7
Slide 9: Sector Construct
Sector Construct Long-term (86%) (89%) Short-term (14%) 1,197 1,390BU* BU Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 11 days 85.9% 4.6% 7.6% 1.9% Exchanges Bilateral & (Only up to 11 days) Long-term PPA Banking ➢ Day Ahead Market, Term Deviation Settlement/ Transac
Slide 10: Fast growing Exchange Markets
Fast growing Exchange Markets Exchanges (BU) Bilateral (BU) DSM (BU) 17.7% -0.4% -1.1% 92 80 67 25 56 58 55 24 54 56 44 48 23 23 23 FY18 FY19 FY20 FY21 FY22* FY18 FY19 FY20 FY21 FY22* FY18 FY19 FY20 FY21 FY22* Driven by competition and flexible procurement, the Exchange markets constitute >50% of po
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% 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. 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% 54.0% exchanges in short-term market 13.6% 11.5% 11.5% 10.6% 10.5% 10.7% 10.7% 7.3% 6.3% 4.0% 4.2% 4.4% 3.2% 3.6% FY16 FY17 FY18 FY19 FY20 FY21 FY22* Share
Slide 13: Electricity Growth Drivers
Electricity Growth Drivers India is placed as the most promising economy on the 7.8% YoY global map: ➢ Industrialization 1,370 1,268 1,284 1,271 1,205 1,135 ➢ GDP growth of 8-10% expected to drive demand for electricity ➢ Core sector growth will drive electricity consumption ➢ Rapid urbanization ➢ 1
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 7000+ 4400+ 1500+ ➢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 70 IEX DAM Volume (BU) Trader Volume (BU) IEX Wt. Avg DAM Price (Rs. per kWh) Bilateral Price (Rs. per kWh) 8 60 59 60 7 50 49 6 50 45 4.23 4.30 4.32 3.91 40 4.42 5 40 4.34 3.46 4.04 4.27 34 4.13 3.54 3.52 3.73 29 3.61 4.03 4 3.58 3.47 28 3.15 3.75 30 3.4
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: 33% CAGR since inception
33% CAGR since inception 37% YoY 33% 1,01,927 74,662 61,124 59,998 55,455 45,146 37,290 28923 29,894 2616 FY09 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY'22 Note: Volume data in billion units. Data based on delivery volumes, DAM vols are based on trading Source: IEX Data (DAM+TAM+RTM+GTAM+GDAM+REC+
Slide 21: Product-wise Key Statistics
Product-wise Key Statistics DAM + TAM RTM Green Power REC ESCerts Market Share 94.2% 99.9% 80.0% 72% 97%2 (FY 22) State Utilities 29 States 29 States 29 States 29 States 29 States As on Mar’22 5 UTs 4 UTs 3 UTs 5 UTs 5 UTs Generators Total Power: 600+ 1216 112 As on Mar’22 Industrial Consumers Total
Slide 22: New Market Segments : Q4 FY22
New Market Segments : Q4 FY22 REAL TIME MARKET GREEN TERM AHEAD MARKET ✓ Buy : 6926 ✓ Daily Average Sell : 86 ✓ Buy : 559 ✓ Daily Average Buy : 6 ✓ Sell : 7785 ✓ Daily Average Cleared : ✓ Sell : 551 ✓ Daily Average Sell : 5 ✓ Cleared : 4477 50 VOLUME (MU) VOLUME (MU) ✓ Cleared : 466 ✓ Daily Average
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 Q4FY21 FY21 Q4FY22 FY22 revenues (%) 130.8 128.4 112.1 111.3 100.3 83.9 80.4 88.4 61.5 Transaction Fees 88% 84% 83% 84% Admission and Annual Fees 5% 5% 5% 5% Q4FY21 Q3FY22 Q4FY22 484.4 Other Income 7% 11% 12% 11% 417.0
Slide 26: No lockdown at IEX!
No lockdown at IEX! ➢ Accessible 24*7 to facilitate uninterrupted power with seamless connectivity and high security ➢ Enabling replacement of costly PPAs through buying on exchange ➢ Launched Real Time Market, Green Term Ahead Market, Green Day Ahead Market and Cross Border Trade with high availabi
Slide 27: Towards a sustainable energy future
Towards a sustainable energy future 26
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: Opportunity
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 500+
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 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 ➢ 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 consumption
Slide 35: Immense growth potential
Immense growth potential ➢ CERC approved the Procedure for Short Term Open Access in inter-State Transmission System for implementation of National Open Access Registry (NOAR) which will enable automation, seamless processes, transmission allocation, and greater efficiency in the power market ➢ In D
Slide 36: 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 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: contact@iexindia.com Website: www.iexindia.com 37
Indian Energy Exchange — Q4 FY2022 Earnings Presentation on 6ix