Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q2 FY2024 Earnings Presentation
41 slides from Indian Energy Exchange's earnings presentation, Nov 2, 2023
Slide 1: Exchange filing cover letter
Dated: November 02, 2023 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 05
Slide 2: Investor Presentation – Q2 FY'24
Investor Presentation – Q2 FY’24 Accelerating India’s Sustainable Energy Transition
Slide 3: In this presentation
In this presentation: Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) 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% 42% 33% Small-scale Generation Decentralisation Across T&D Network FY 2010 FY 2023 FY 2030 FY 2010 FY 2023 FY 2030 Empowered Consumers - Economic Democratisation Power Shif
Slide 5: In this presentation
In this presentation: Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 4
Slide 6: Electricity Value Chain
Electricity Value Chain Generation Transmission Distribution & Consumption Energy Transition World’s Largest Network Reforms Underway Installed Capacity As on FY 2030 ➢ Inter-reg. trans. Cap.: 112.3 GW ➢ Avg. AT & C Losses: FY’21 – 22.3%; 30th CEA FY’22 – 16.4%; Expected to have Sep’23 Proj. ➢ 4.72
Slide 7: Installed Capacity = 425 GW
Installed Capacity = 425 GW Capacity by Source Capacity by Ownership 47 GW 7 GW Hydro Nuclear Central State 102 GW 106 GW 132 GW 239 GW Renewable Thermal Private 217 GW Data as on 31stAugust 2023 6
Slide 8: Sector Construct
Sector Construct Long-Term (87%) Long-term (89%) Short-Term (13%) Total Power Consumption FY’23: 1,504 BU Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 90 days 87% 4% 7% 2% Day Ahead Market, Real Bilateral & Time, Intraday, Contingency, Banking Deviation Settlement/ L
Slide 9: Exchange Markets are growing fast
Exchange Markets are growing fast Exchanges (BU) Bilateral (BU) DSM (BU) CAGR: 14% CAGR: 2.5% CAGR: 1.3% 101 103 56 67 58 60 65 80 26 44 25 25 48 54 56 24 23 23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Source: CERC, MMR Reports till Mar 23 Driven by c
Slide 10: Immense Potential to Deepen India's Power Market
Immense Potential to Deepen India’s Power Market 91% 49% 47% 39% 34% 23% 15% 7% Nordpool Germany UK Netherlands Switzerland Belgium France India Note: Data for India till Mar’23 Source: CRISIL Study Markets are in the range of 30-80% in developed economies. At 7%, India has an opportunity to deepen
Slide 11: 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% 54.3% 53.0% exchanges in short-term market 13.6% 12.9% 11.5% 11.5% 10.6% 10.5% 10.7% 10.7% 7.4% 6.3% 6.8% 4.0% 4.2% 4.4% 3.2% 3.6% FY16 FY17 FY18 FY19 FY20
Slide 12: Electricity Growth Drivers
Electricity Growth Drivers India is placed as the most promising economy on the global map 2,280 ➢ Industrialization 1,907 ✓ High GDP growth of about 7% expected to drive electricity 1,695 ✓ Core sector, traction, EV, cooking will drive electricity 1,504 consumption 1,374 1,284 1,271 ➢ Rapid urbaniz
Slide 13: In this presentation
In this presentation: Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 12
Slide 14: 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 7,500+ 4,600+ 1,800+ ➢Commenced operations in 2008; CERC Registered Commercial & RE Generators & participants In
Slide 15: 15 Years of Servicing India's Electricity Market-Place
15 Years of Servicing India’s Electricity Market-Place 14
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: Market Segments
Market Segments Integrated Day Ahead Market Intraday Market & Contingency Market Segment DAM since Jun’08 Since Jul’15 Delivery for next day; 15 min. contracts, Daily trade Intraday Market : hourly and or 15-minute contracts on same Price discovery: Closed , Double-sided Auction day on rolling
Slide 19: IEX Product Mix
IEX Product Mix FY23 H1 FY24 Certificates Certificates TAM 6% 6% TAM 11% 15% DAM 46% DAM RTM 53% 25% RTM 30% Green Green 5% 3% Total Volume: 96.8 BU Total Volume: 51.7 BU Matching Closed, Double- sided Open Auction -Uniform Price Continuous Reverse Auction Auction Step Matching Existing Products DAM
Slide 20: Supply Side Constraints Easing
Supply Side Constraints Easing Indonesian 4200 GAR Coal Prices E-auction Prices above Notified Price (%) Coal Inventory at Power Plants 14 14 14 14 14 14 14 106 425 13 13 12 85 90 89 85 86 345 357 11 11 83 78 312 10 75 73 74 72 69 290 290 276 270 61 232 54 52 50 52 205 204 205 202 197 182 180 170 19
Slide 21: With increase in power demand, Exchange prices are rising
With increase in power demand, Exchange prices are rising Power Demand (BUs) 151 12 141 144 139 IEX Price 132 132 135 136 133 10.1 127 128 127 130 128 127 10 119 112 108 8 6.8 6.5 6.7 6.9 6.2 6.2 5.4 5.6 5.4 5.4 5.4 6 5.2 5.2 4.6 4.7 4.5 3.8 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep 2022 2023 DAM MC
Slide 22: Robust Financial Performance of IEX
Robust Financial Performance of IEX Consolidated Financials Rs Cr Breakup of standalone Q2FY23 Q1FY24 Q2FY24 260.3 revenues (%) 227.2 221.2 193.6 162.1 140.4 Transaction Fees 80% 78% 78% Admission and Annual Fees 4% 4% 4% H1FY23 H1FY24 Total Revenue EBITDA PAT Other Income 16% 18% 18% 127.4 133.0 11
Slide 23: Customer Centric Technology and Product Strategy
Customer Centric Technology and Product Strategy CUSTOMER CENTRIC EFFICIENT STATE OF THE ART ➢ Digital Experience ➢ Comprehensive Product Portfolio ➢ National Open Access Registry ✓ Secure Web Access ✓ High Price Term Ahead Market (HP-TAM) ✓ Integrated bids across segments ✓ High Price Day Ahead Mar
Slide 24: Creating Customer Delight for Each Interaction
Creating Customer Delight for Each Interaction ➢ Ease of Bidding ➢ Digital Registration Bidding ➢ Multiple Products ➢ Frictionless ➢ Efficient Price Discovery ➢ Quick Customer ➢ Data Insights Interactions ➢ Automated ➢ On-Time Payment ➢ Real-Time Communication ➢ Robust Risk Management Financial Sche
Slide 25: Transitioning Towards a Futuristic Tech Architecture
Transitioning Towards a Futuristic Tech Architecture Automated ➢ Digital Inside Manual Workflow ➢ Open API Integration Digital Mesh ➢ Automation Modular ➢ Service Oriented Architecture Monolithic ➢ Automated Bank Integration Digital Twins ➢ Web-based Portal Desktop-based All Platforms ➢ Power Market
Slide 26: Launch of IEX Academy; Price Index - PowerX
Launch of IEX Academy; Price Index - PowerX ✓ Launched in June to create pool of skilled professionals for capacity building in the power market. Nearly 250 enrollments across programs in first 3 months. ✓ Certification courses to develop skills and expertise in Electricity Markets across topics suc
Slide 27: In this presentation
In this presentation: Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 26
Slide 28: Indian Gas Exchange (IGX)
Indian Gas Exchange (IGX) 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 dri
Slide 29: IGX – Key Highlights
IGX – Key Highlights Q2 FY24 Business Updates Strategic Partners Total Volume 19.5 Million MMBtu YoY (%) 262% Total number of trades 223 No. of members 43 Active clients 200+ Domestic Gas Ceiling Price ➢ Commenced trading on 23rd May’22 ➢ Traded Volume: FY’23 - 50.9 Million MMBtu; Q2 FY’24 - 16.9 Mi
Slide 30: GIXI - IGX Gas Index
GIXI - IGX Gas Index Launched on 19th December 2022 GIXI represents volume weighted average price for all gas traded on any day (excluding domestic ceiling price gas) GIXI represents prices for all hubs; for regional hubs will be named as GIXI West etc. For months, named as GIXI-Jan23 etc. Helps mar
Slide 31: Opportunity
Opportunity Growth in Gas Demand will lead to opportunities for Gas Exchange & Other Stakeholders ➢ Government’s vision of increasing share of Natural Gas in total energy basket from ~6.3% to 15% by 2030 will increase gas consumption in the economy from nearly 160 MMSCMD to 500+ MMSCMD ➢ With comple
Slide 32: Key Gas Market Enablers
Key Gas Market Enablers Inclusion of Natural Gas under GST Incorporation of TSO Implementation of New Access Code Regulations Declaration of CGD Exclusivity (Open Access within CGD Areas) Policy Steps to Accelerate Role of Natural Gas in India’s Economy (Natural Gas usage over polluting fuels) 31
Slide 33: In this presentation
In this presentation: Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 32
Slide 34: International Carbon Exchange (ICX)
International Carbon Exchange (ICX) ➢ IEX formed a wholly owned subsidiary – ICX, in December 2022 to promote voluntary carbon market; second diversification initiative after successful launch of IGX in 2020. ➢ Will help India achieve its target of reducing the emission intensity of its GDP by 45% b
Slide 35: In this presentation
In this presentation: Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 34
Slide 36: IEX: Growth Drivers (1/3)
IEX: Growth Drivers (1/3) ➢ RTM: June’20 ➢ Green Markets: GTAM launched in Aug’20, GDAM launched in Oct’21 Growth from ➢ Cross Border: April’21 recently ➢ Term Ahead Market Up to 3-Months in June’22 launched products ➢ HP-DAM (High Price-DAM): March’23 ➢ Ancillary Market launched: June’23 ➢ HP-TAM:
Slide 37: IEX: Growth Drivers (2/3)
IEX: Growth Drivers (2/3) ➢ Report of the Group on Development of Electricity Market in India, Ministry of Power charts out roadmap for Indian Power Market over Short, Medium and Long Term Favorable Policy, ➢ Spot markets share to increase to 25% as per Draft NEP 2021 Regulatory ➢ GNA Regulation, Sh
Slide 38: IEX: Growth Drivers (3/3) - Future Opportunities
IEX: Growth Drivers (3/3) - Future Opportunities Virtual PPA’s ➢ Financial instrument used by buyers/sellers to hedge electricity cost Contracts for Difference (CfDs) ➢ Buyer not obligated to undertake direct physical delivery of ➢ CfD model beneficial for RE generators, provides long-term electrici
Slide 39: Thank you
Thank you @IndianEnergy @indian-energy @IEX_India_ ExchangeLtdIEX -exchange-limited Phone: +91-120 4648100 Email: contact@iexindia.com Website: www.iexindia.com 38
Slide 40: IEX Announces Unaudited Financial Results for Quarter Ending September 30, 2023
INDIAN ENERGY EXCHANGE (IEX) ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDING SEPTEMBER 30, 2023 • IEX REPORTS 26.53 BU OVERALL VOLUME IN Q2 FY24, A 15% GROWTH YOY. • Q2 FY24 CONSOLIDATED REVENUE STANDS AT INR 133 CRORE, MARKING 17% YOY INCREASE. • CONSOLIDATED PAT FOR Q2 FY24 IS INR 86.
Slide 41: Power demand was higher than anticipated for the monsoon months
Power demand was higher than anticipated for the monsoon months, with peak power demand reaching nearly 240 GW in September first week. States like Maharashtra, Uttar Pradesh, Gujarat, and Tamil Nadu witnessed soaring demand this quarter. On the fuel side, India's coal production increased by a robu
Indian Energy Exchange — Q2 FY2024 Earnings Presentation on 6ix