Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Investor Presentation (June 2020)
28 slides from Indian Energy Exchange's investor presentation, Jun 4, 2020
Slide 1: Cover letter to stock exchanges
Dated: June 04, 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 Bandra (E), Mumbai-400 051 Scr
Slide 2: Investor Presentation - Q4 FY'20
Investor Presentation - Q4 FY’20 For Public Use
Slide 3: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who we are Impact of 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 •
Slide 5: The energy shift
The energy shift 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 , 9% Solar Bio- 20% Power Solar 2% 36% Thermal WInd , 10% 35% Small Hydro , 1% Wind Thermal Powe
Slide 6: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who are we Impact of COVID - 19 Way forward
Slide 7: Electricity value chain
Electricity value chain 3 Yr CAGR (%) CAPACITY (GW) Share of REN* 344 356 370 15.0% 24% REN FY'18 FY'19 FY'20 Thermal Nuclear Hydro RES 4.2% GENERATION (BU) Generation Transmission Distribution Energy De-licensed is licensed licensed deficit 1303 1372 1383 10% decreased 18.7% REN Private World’s lar
Slide 8: Power sector construct
Power sector construct Long Term (90%) Short Term (10%) (3Yr CAGR: 8%; YTD Feb’20: -4.9% YoY) Bilateral (BU) 1,274 BU (incl REN)* 55 56 67 55 OTC: Exchanges: 47 Up to 25 years Real Time 40 Intraday to 1 year Intraday – 11 days 34 27 28 21 54.7* BU 20.8* BU 17 19 1,146.3 BU 52.1* BU 90.0% 4.3% 4.1% 1
Slide 9: Share of power exchanges globally
Share of power exchanges globally Exchange market and ST market a % of total generation (incl Exchange market as a % of total demand – Global2 Ren) – India1 10.6% 9.9% 9.8% 10.0% 9.6% 91% 49% 47% 3.9% 4.1% 39% 34% 3.3% 3.6% 2.9% 23% 15% FY16 FY17 FY18 FY19 YTD Feb'20 Power markets in developed econo
Slide 10: Electricity consumption bound to increase
Electricity consumption bound to increase • India a third of global average in per capita consumption Total Electricity Demand (BU)1 • Economic activity will accelerate • Government envisions India as an industrial hub 1284 1268 • Core sector growth will drive electricity consumption 1205 • Rapid ur
Slide 11: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who we are Impact of 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% sustainable energy ensuring competitive, • Electricity
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: Our Market segments
Our 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 • Daily and weekly contracts Auction Real-Time • Delivery after 1 hour of
Slide 15: Robust financial performance – Q4 2020
Robust financial performance – Q4 2020 Consolidated Financials Rs Cr Breakup of Q4 FY FY Q4 FY FY 90.0 79% 90% standalone 80.0 80% 2019 2019 2020 2020 70.0 83% 82% 70% revenues (%) 60.0 60% 50.0 50% Transaction Fees 77% 80% 80% 80% 40.0 40% 30.0 30% 20.0 20% Admission and 6% 7% 7% 6% 10.0 67.8 56.2
Slide 16: Launch of a new market segment
Launch of a new market segment • Introduced a new market segment - Real Time Markets • Trading commenced on 1st June 2020 • Market Features • 48 bid sessions during the day; Each bid session for a duration of 15 minutes • First bid session starts at 2245 hrs • Double-sided anonymous auction bidding
Slide 17: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who are we Impact of COVID - 19 Way forward
Slide 18: Impact of CoVID-19 on Indian Power sector
Impact of CoVID-19 on Indian Power sector • Being essential service, impact on power generation is likely to be less than other industries • IPP’s will be impacted – no PPA’s + anticipated fall in spot prices could drive them out of market • Limited impact on coal prices and coal logistics, solar mo
Slide 19: 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 20: 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 21: In this presentation
Sector in transformation Electricity value chain In this presentation IEX : Who are we Impact of COVID - 19 Way forward
Slide 22: 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 23: Expand coverage and market
Expand coverage and market New Product Launches Tech based • Cross Border Trade • Smart Power Procurement • Longer Duration Contracts • Analytics • Green TAM • New Product Development • Exchange based Ancillary Market • Banking contracts Organization capacity building – Adding resources
Slide 24: 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 25: 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 26: 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 • mee
Slide 27: 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 28: Thank You
Thank You
Indian Energy Exchange — Investor Presentation (June 2020) on 6ix