Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q2 FY2021 Earnings Presentation
30 slides from Indian Energy Exchange's earnings presentation, Nov 17, 2020
Slide 1: Investor Presentation Q2 FY2021 filing letter
Dated: November 17, 2020 a I EX INDIAN ENERGY EXCHANGE 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- 400
Slide 2: Investor Presentation - Q2 FY'21
Investor Presentation - Q2 FY’21 For Public Use
Slide 3: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who we are COVID - 19 Way forward
Slide 4: Transformation drivers
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 hybrids • R
Slide 5: The energy shift
The energy shift Hybridization requires technology driven apps and automation Total Installed ~370 GW ~500 GW ~800 GW Capacity >> Bio-Power , 3% Solar , 9% Solar Bio- 20% Power Solar 2% 36% Thermal WInd , 10% 35% Small Hydro , 1% Wind Thermal Power 53% Hydro , 12% Thermal , 62% 12% Nuclear 2% Hydro
Slide 6: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who are we COVID - 19 Way forward
Slide 7: Electricity value chain
Electricity value chain 5 Yr CAGR (%)* CAPACITY (GW) Share of REN 326 344 356 370 373 17.4% 24% REN FY'17 FY'18 FY'19 FY'20 YTD Sept FY'21 6.1% Thermal Nuclear Hydro RES TOTAL GENERATION (BU) Generation Transmission Distribution Large 1236 1303 1372 1381 de-licensed is licensed licensed capacity 12%
Slide 8: Power sector construct
Power sector construct Long Term (90%) Short Term (10%) Bilateral (BU) 1,381 BU (incl REN)* 67 Bilateral: Exchanges: 56 58 Up to 25 years Real Time Less than 1 year Intraday – 11 days -39% 1,244 BU 58 BU 56 BU 23 BU YoY 18 90.0% 4.2% 4.1% 1.7% Bilateral FY18 FY19 FY'20 YTD Aug'21 Exchanges Exchange
Slide 9: Share of power exchanges globally
Share of power exchanges globally Exchange market as a % of total demand – Global1 Exchange market and ST market a % of total generation (incl Ren) – India2 Share of 91% exchanges 29.9% 34.2% 36.8% 36.9% 41.2% 48.7% in short 10.6% term 9.9% 9.9% 9.9% market 9.6% 9.8% 49% 47% 39% 4.8% 34% 3.9% 4.1% 3
Slide 10: Electricity consumption bound to increase
Electricity consumption bound to increase • Per capita consumption in India is 1/3rd of global average Total Electricity Demand (BU)1 • Per capita consumption expected to double in the next 5-6 years 1,372 1,381 1,303 • Economic activity will accelerate 1,236 • Government envisions India as an indus
Slide 11: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who we are COVID - 19 Way forward
Slide 12: Who we are
Who we are OUR VISION • India’s leading power exchange – Nation wide, Automated and transparent platform for physical delivery of electricity To be the architect of next- generation solutions for • Commenced operations in 2008, Market Share: 95% (DAM & RTM >99%) sustainable energy ensuring competiti
Slide 13: 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 14: Market Segments
Market Segments Day-Ahead Market • Delivery for next day since June,08 • Price discovery: Closed , Double-sided Auction Intraday Market & Day-Ahead Contingency • Intraday: For Delivery within the same day Round the clock since Jul’15 • DAC: Another window for next day, Gate closure : 3.5 hours Conti
Slide 15: Building a sustainable energy economy
Building a sustainable energy economy Green Markets – Building India as a Sustainable Energy Economy • India is seeing rapid transformation of energy ecosystem – Signatory to Paris Climate Agreement 2016 – 40% of RE energy by 2030 – 450 GW installed RE Capacity – Consumer preference shifting towards
Slide 16: Green Term Ahead Markets
Green Term Ahead Markets • Introduced a new market segment – Green Term Ahead Market • Trading commenced on 21st August 2020 • Green market contracts – Day Ahead Contingency, Intra Day. Daily and Weekly – In pipeline • Benefits – Achieving national green aspirations – Access to pan India market 88 M
Slide 17: Real Time Markets
Real Time Markets • Introduced a new market segment on 1st June 2020 - Real Time Markets • Market Features RTM Volumes (MU) • 48 bid sessions during the day; Each bid session for a duration of 15 minutes 785 861 704 • Double-sided anonymous auction bidding process 515 • Exchange manages risk managem
Slide 18: Robust financial performance
Robust financial performance Standalone Financials Rs Cr Consolidated Financials Rs Cr 78.7 80.5 79.4 78.7 81.1 78.7 64.5 63.2 66.1 64.5 61.3 63.2 48.8 42.9 46.7 48.8 42.1 44.3 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Revenue EBITDA PAT Revenues EBITDA PAT Breakup of standalone Q2 FY FY Q2 FY FY re
Slide 19: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who are we COVID - 19 Way forward
Slide 20: IEX extending support during the crisis
IEX extending support during the 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-clock operations with seamless connectivi
Slide 21: 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 “Power utilities turn to cheaper exchange
Slide 22: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who are we COVID - 19 Way forward
Slide 23: 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 24: Drivers of growth
Drivers of growth Demand for electricity Per capita electricity consumption is expected to double in the next 5-6 years. Phasing out of old plants ~17GW of thermal capacity likely to retire by FY’22 and another ~26GW likely to retire by FY’27. No new PPA’s No new long term PPAs have been signed in t
Slide 25: Expand coverage and market
Expand coverage and market New Product Launches Tech based • Cross Border Trade • Smart Power • Longer Duration Contracts Procurement • Green Day Ahead Markets • Analytics • Integration of RE with conventional power through exchange
Slide 26: 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 27: Smart Product/Bids
Smart Product/Bids Standard Intra-Day Minimum Income Condition Day Ahead Contract TAM Single Bid Load Gradient Bid (Term Ahead Market) Daily MIC (Schedule Stop Condition) Weekly Day Ahead market (DAM) Real Time Market (RTM) Standard Parent Child Reverse Auction LDC Block Bid Minimum Fill Quantity (L
Slide 28: 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 P – Product launches • me
Slide 29: 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 ca
Slide 30: Thank You
Thank You
Indian Energy Exchange — Q2 FY2021 Earnings Presentation on 6ix