Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q2 FY2020 Earnings Presentation
29 slides from Indian Energy Exchange's earnings presentation, Dec 18, 2019
Slide 1: Indian Energy Exchange filing cover letter
I EX INDIAN ENERGY EXCHANGE Dated: December 18, 2019 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- 40000
Slide 2: Investor Presentation - Q2 FY'20
Investor Presentation - Q2 FY’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 • Automated, open and transparent platform for physical delivery of electricity • Commenced operations in 2008, CAGR 33%, CERC regulated Transparency • India’s leading power exchange, Market Share: 97% • Average daily trade 6000+ MW • Record day volume : 308 MU’s (12,900 MW) Liquidity • O
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: Market segments
Market segments Day-Ahead • Delivery for next day Market • Price discovery: Closed , Double-sided Auction Term-Ahead • Intraday: For Delivery within the same day Market • Day Ahead Contingency: Another window for next day Auction • Daily and weekly contracts Renewable • Green Attributes as Certifica
Slide 7: Robust financial performance
Robust financial performance 90.0 90% 80.0 89% 88% 70.0 87% 60.0 50.0 86% 85% Focus on operational 40.0 84% 30.0 84% 84% excellence and 83% 20.0 82% 82% financial prudence 10.0 81% 75.2 63.0 42.7 69.7 58.5 39.6 78.7 64.5 48.8 0.0 80% Q2 FY 2019 Q1 FY 2020 Q2 FY 2020 Rs. Cr Revenues EBITDA PAT EBITDA
Slide 8: In this presentation
IEX : Who we are Sector transformation In this presentation Electricity value chain & Power market structure Way forward
Slide 9: 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 10: Sector transformation drivers
Sector transformation drivers Paris Climate Agreement – Renewable energy to constitute 40% Hybridization requires technology of total installed capacity base of 1250 GW driven apps and automation Bio-Power 3% Solar Wind 8% Power Solar 10% Bio- 20% Small Power Solar Hydro 2% 36% Thermal 1% 35% Hydro
Slide 11: In this presentation
IEX : Who we are Sector transformation In this presentation Electricity value chain & Power market structure Way forward
Slide 12: Electricity value chain
Electricity value chain CAGR (%) CAPACITY (GW) Share of REN* 305 327 344 356 362 18.8% 22% REN FY'16 FY'17 FY'18 FY'19 FY'20 (1H'20) 6.7% Thermal Nuclear Hydro RES GENERATION (BU) 1303 1372 Generation Transmission Distribution Energy 1168 1236 732 De-licensed is licensed licensed deficit 10.5% decre
Slide 13: Electricity is a key driver to economic growth
Electricity is a key driver to economic growth Contribution to FY’19 (%) Sectors Power & fuel costs • India is: GDP %2 as a % Rev3 • 3rd largest consumer of electricity Agriculture, forestry Utilities 44% • 3rd largest producer of electricity; and & fishing 16.1 • 5th largest in the world in RE capa
Slide 14: 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 15: 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 -2.8% 55 56 -27.1% 72.2% 47 1,226.5 BU 66.5 BU 53.5 BU 25.1 BU 36 34 40 21 17 19 16 21 89.4%
Slide 16: Markets have immense potential
Markets have immense potential Total Electricity Demand (MU) Per Capital Electricity Consumption (KWh)2 1,274,595 12,994 1,213,326 6,940 7,035 6,603 1,142,928 3,927 3,127 2,601 1,149 US France Germany Russia Global China Brazil India Average FY17 FY18 FY19 Expected Electrical Energy Requirement (BU)
Slide 17: Global benchmarking
Global benchmarking Exchange market and ST market a % of total demand – India1 Exchange market as a % of total demand – Global2 11.4% 10.3% 10.4% 10.5% 9.3% 91% 49% 47% 3.9% 4.1% 39% 34% 3.1% 3.6% 2.7% 23% 15% FY15 FY16 FY17 FY18 FY19 Share of ST Market in total demand Share of exchanges in total de
Slide 18: In this presentation
IEX : Who we are Sector transformation In this presentation Electricity value chain & Power market structure Way forward
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: Thank You
Thank You
Slide 26: ANNEXURES
ANNEXURES
Slide 27: Industrial consumers on IEX
Industrial consumers on IEX Registered open Access Consumers Open Access consumers spread - By States (As on 30th September,19) across industries1 (As on 30th September,19) Uttarakhand, Others, 303 135 305 Telangana, 224 254 Karnataka, 259 Tamil Nadu, 177 891 Gujarat, 541 116 116 Rajasthan, 335 79 P
Slide 28: Cost optimization - Punjab DISCOM
Cost optimization - Punjab DISCOM Sold 1430 Mus during Sep/Oct’ 18 @ Rs.5.74/u. Sell Additional revenue of Rs.350 Cr. Purchased 385 Mus from exchange at average Buy rate of Rs.3.09 per unit resulting into savings of Rs.19 Cr. Back down/reduced the power drawn from private Replace thermal plants and
Slide 29: DEEP v/s IEX
DEEP v/s IEX ✓ Telangana discoms Tender for 1000 MW RTC power for period 1st Jul, 2019 to 31st Mar, 2020. ✓ The prices discovered at DEEP- portal are ranging from Rs. 5.48 - Rs. 5.80 per unit, much higher in comparison to IEX prices. Cost if Cost if L1 Price Power IEX Avg Price 10% increase purchase
Indian Energy Exchange — Q2 FY2020 Earnings Presentation on 6ix