Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Motilal Oswal 18th Annual Global Investor Conference (September 2022)
25 slides from Adani Energy Solutions's conference presentation, September 2022
Slide 1: Distribution Reforms and Energy Transition – Changing Paradigms
Distribution Reforms and Energy Transition – Changing Paradigms Motilal Oswal 18th Annual Global Investor Conference September 2022 Presented by: Mr. Anil Sardana MD & CEO – Adani Transmission Ltd. MD – Adani Power CBO – Adani Hydro 1
Slide 2: Distribution Reforms and Changing Paradigms
Distribution Reforms and Changing Paradigms 2
Slide 3: India's power sector has seen major developments in last few years
India’s power sector has seen major developments in last few years Total Installed Capacity (in GW) Overall Electricity demand (in TWh) India’s household electricity access (in %) 98 99 900 3,000 93 832 88 88 96 800 96 2,500 77 83 Thermal Hydro Wind >6% 2,300 700 67 67 Nuclear Solar Bioenergy 63 600
Slide 4: Distribution sector continues to be hit with huge fiscal losses, payables & debt
However, Distribution sector continues to be hit with huge Fiscal losses, Payables & Debt; with Covid & recent Power crisis fueling further deterioration Debt restructuring under UDAY improved the balance sheet but the AT&C losses have reduced but still significantly above Govt targets relief was te
Slide 5: Government has pursued several reforms, however Discom issues haven't got resolved
Government has continuously pursued several reforms/initiatives for improving financial and operational efficiencies, however Discom issues haven’t got resolved Description Outcome Shunglu Stop bankrolling of revenue gap of DISCOMS Banks are once again financing unbankable committee Changes to
Slide 6: Impact of recent crises will need both Central and State absorption
Impact of recent crises (COVID & Fuel Price) will need both Central and State absorption along with fuel pass-through arrangement & regulatory asset management for sector survival Impact of COVID Impact of high bulk cost Regulatory assets Estimated cumulative Tariff Impact Estimated impact 5.0% rise
Slide 7: Several Distribution Reforms are already underway
Several Distribution Reforms are already underway… Key Detail Current Status • Currently on hold due to revision after • Proposes multiple distribution licensees, with the Draft Amendment to stakeholder consultation. Due for new licensees being able to use the incumbent EA clearance from Standing co
Slide 8: Other initiatives that need to be taken forward
…there are other initiatives that need to also taken forward • Stricter enforcement of RPO Power purchase cost • Innovative schemes like RTC to better utilize existing thermal capacity • Implementation of national MOD to incentivize efficient generation • EV charging infrastructure • Innovation in r
Slide 9: Broadly two business models emerge to be lucrative to industry players
Broadly two business models emerge to be lucrative to industry players State Private Player Resistance from Political Risk from Employees & Justification mileage for OVERALL wrong OVERALL local for need of the ATTRACTIVE- Baseline Contractual ATTRACTIVE- communities privatization government NESS dat
Slide 10: Private participation in the distribution sector has been very limited
Private participation in the distribution sector has been very limited mainly dominated by two models - licensee model and franchisee model Pre-Reform 1997 2002 2007 2009 2010-11 2011-12 2016-17 2017-18 2019 2019-20 2020-21 CESC,TPC, Odisha Delhi Bhiwandi & Kanpur & Nagpur, Sagar, Kota & Bikaner & O
Slide 11: Adani Group is uniquely placed with experience in urban and small power distribution
Adani Group is uniquely placed with experience of managing both large urban and small power distribution areas - AEML (Mumbai) & MUL (Mundra SEZ) Largest Integrated utility in India’s Commercial Capital -Mumbai Acquisition of MPSEZ Utilities Limited (MUL) About Mumbai About MPSEZ Utilities Limited (
Slide 12: Energy Transition and Adani Group's Positioning
Energy Transition and Adani Group’s Positioning 12
Slide 13: Energy Basket – India Story
Energy Basket – India Story Energy Security: Import dependence in energy Decarbonization: “Panchamrit” strategy (COP26) MTOE Coal Crude/Oil Products Gas Other (Nuclear, RE, Hydro) % Import 1 500 GW non-fossil energy capacity by 2030 Electricity 0.5% 37 57 Green H2 is a green and 100% 53% domestic so
Slide 14: The Indian Power sector is undergoing tremendous transition
The Indian Power sector is undergoing tremendous transition Smart Grid and Digitalization & demand Rise of renewables Electric mobility Battery Storage response • Increasing RPOs • Advanced, intelligent • Shifting load profile • Increase in energy • Increased open access electric grid for real- • Gr
Slide 15: Energy Transition in Charts
Energy Transition in Charts… Figure 1: Share of technologies in installed capacity mix in India % Figure 2: Electricity generation from various technologies (TWh) % Small-scale batteries TWh Small-scale PV 100% Utility-scale batteries 5,000 Utility-scale PV Small-scale PV Offshore wind 80% Utility-s
Slide 16: Adani Green's Renewable Portfolio – A Case Study
Adani Green’s Renewable Portfolio – A Case Study Adani Family 60.5% 19.7% 19.8% Public Shareholders 50% 50% 100 % 100 % 100 % AGE23L 1 Other Operating Locked-in Under Execution Near construction 2,353 MW 3,447 MW 11,401 MW 3,233 MW portfolio: 20,434 MW Large 5,800 MW – Operational 2 89% Resource and
Slide 17: Adani New Industries Limited (ANIL): The Vision
Adani New Industries Limited (ANIL): The Vision 1 Significant Green Hydrogen demand − Green H2 market of ~6 MMTPA by 2030 and 20- 30 MMTPA by 2050 5 Decarbonization of Industrial Energy & Mobility 2 Transform India’s Energy Ecosystem − Decarbonisation covering − Transitioning from imported fossil fu
Slide 18: Green Hydrogen – Massive Potential to Decarbonize Industries
Green Hydrogen – Massive Potential to Decarbonize Industries End Use Sectors Green Hydrogen Market (MMT) Remarks 1.85 − Green H2 consumption by existing refining capacity in line with Refinery Demand 0.78 expected policy from GoI (National Hydrogen Energy mission) 0.13 − New Refinery projects will f
Slide 19: ANIL: Green Hydrogen Ecosystem for First phase of 1.0 MMTPA
ANIL: Green Hydrogen Ecosystem for First phase of 1.0 MMTPA Key components of the project which is to be executed for 1.0 MMTPA Green H2 ecosystem include: Hybrid RE Electrolyzer for Green Green H2 Generation H2 Pipeline Green H2 Green Ammonia Ammonia Compression production Offtake ~20 GW+ ~210
Slide 20: Mundra SEZ: The largest integrated Green Hydrogen Hub in the world
Mundra SEZ: The largest integrated Green Hydrogen Hub in the world Full suite of Hydrogen … For multiple end uses including substantial captive … And backed by credible offerings … use in Adani Portfolio businesses … action on ground 1 5 RE capacity directly 48 GW Green Fertilizers Steel, Petrochemi
Slide 21: The Defining Decade for Indian Power Sector
The Defining Decade for Indian Power Sector… India’s energy landscape has evolved very rapidly over the last decade… …and as a country we had many achievements and strides to boast in areas like grid stability, demand growth, electrification… …however next decade is extremely crucial in terms of cle
Slide 22: Annexure
adani Annexure 22
Slide 23: Convergence: With the advent of Hydrogen the power and fuels space are coming together
Convergence: With the advent of Hydrogen the power and fuels space are coming together – Excess RE can be converted to Hydrogen which can replace liquid fossil fuels currently prevalent Source: BNEF 23
Slide 24: Innovation is the key factor in facilitating energy transition
Innovation is the key factor in facilitating energy transition… High RE is expected to be penetrated in the ….resulting in higher variable generation and grid by 2030…. making it necessary to have a flexibility option 817,103 Other RE Wind Solar Hydro Nuclear Gas Coal + Lignite 381,539 High variable
Slide 25: Thank You
adani Thank You