Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Investor Presentation (March 2021)
36 slides from Indian Energy Exchange's investor presentation, Mar 5, 2021
Slide 1: Investor Presentation filing letter to stock exchanges
(14. INDIAN ENERGY EXCHANGE Dated: March 05, 2021 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 B
Slide 2: Indian Energy Exchange Analyst Meet 2021
Indian Energy Exchange Analyst Meet 2021 1
Slide 3: In this presentation
In this presentation: Financial Highlights Business Performance and Way Forward Regulatory Updates Customer Experience Technology Innovation Indian Gas Exchange 2
Slide 4: Financial performance over the Decade
Financial performance over the Decade ✓ Revenue from Operations and traded volumes has increased by CAGR 25% over 10 years. ✓ PAT, EBITDA & EPS has grown by CAGR 28 %, 28% & 27% resp. over 10 years – High Operating Leverage. ✓ Debt free company since inception. ✓ Technology focused entity • In FY 18
Slide 5: Financial Performance – YoY
Financial Performance – YoY In Rs Crore Revenue Operating Expenses 40 40 26 33 34 25 32 254 257 55 51 53 230 222 50 175 199 46 43 145 41 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY-21* FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY-21* Revenue from operations Other income PAT EPS EBITDA 245 165 178 243 150 210 2
Slide 6: In this presentation
In this presentation: Financial Highlights Business Performance and Way Forward Regulatory Updates Customer Experience Technology Innovation Indian Gas Exchange 5
Slide 7: Electricity Value Chain: Key Highlights
Electricity Value Chain: Key Highlights Generation Transmission Distribution Consumption 375 GW installed World’s largest network Distribution reforms Power surplus nation capacity: underway: • 91 GW renewables Inter-regional • Tariff reforms Peak demand at • 47% private transmission capacity: • Con
Slide 8: Generation: installed capacity growth vs demand
Installed capacity has grown at a faster pace compared to demand Thermal Nuclear Hydro RES 371 376 10 Yr CAGR 344 356 326 91 299 69 78 87 268 39 57 243 Capacity CAPACITY (GW) 224 32 200 29 160 174 28 16 18 25 growth of 168 189 211 218 223 226 231 232 9% and 131 152 102 113 generation FY'10 FY'11 FY'
Slide 9: Short Term Market Comparison
Short Term Market Comparison Short Term Market Trend (In BU) Total Generation Short Term Market 137 4.5% 1360 5.6% 99 1045 ✓ ST Market grew at a CAGR of 5.6% whereas Power FY15 FY21 E FY15 FY21 E Exchanges have grown at 17.4% . Power Exchanges ✓ IEX launched RTM & GTAM in FY2021 17.4% 77 ✓ 8.8 BUs t
Slide 10: IEX Performance (Apr-Feb)
IEX Performance (Apr-Feb) Product FY20 FY21 % Achieved Electricity Volume Comparison Month Quarter Year Electricity 49590 65691 32% (DAM+TAM+RTM+GTAM) DAM 45141 53867 19% Apr 4338 7% TAM 4448 3038 -32% 4052 RTM 8054 May 4090 14% 6005 47% GTAM 731 Jun 4566 Certificate 5508 697 -87% 4790 5% REC 5508 6
Slide 11: New Markets Segments FY21 (Apr-Feb)
New Markets Segments FY21 (Apr-Feb) REAL TIME MARKET (Jun’20 – Feb’21) GTAM MARKET (Aug’20- Feb’21) ✓Buy – 10218 ✓Buy – 1655 ✓Sell – 21550 ✓Sell – 1609 VOLUME (MU) ✓Cleared – 8055 VOLUME (MU) ✓Cleared -734 ✓ Average – 2.68 ✓ Average -3.84 ✓ Min – 0.02 ✓ Min – 2.82 ✓ Max – 9.00 ✓ Max – 9.00 PRICE (Rs
Slide 12: All Power Market Segments Volume (FY21)
All Power Market Segments Volume (FY21) 8000 DAM TAM RTM GTAM 7000 6000 Volume (MU) 5000 4000 3000 2000 1000 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 11
Slide 13: Immense growth potential
Immense growth potential • 100% household electrification under SAUBHAGAYA scheme Demand for Electricity • Rapid urbanization - 17 of 20 world’s fastest growing cities in India • Per capita electricity consumption is expected to increase by ~ 40% in the next 4 years • Total capacity likely to phase
Slide 14: Immense growth potential
Immense growth potential • Budget 2021: Proposed Rs 3 lakh crore distribution reform package to promote competition, consumer choice and increase penetration of automation and technology • Sharing of ISTS Charges & Losses Regulations 2020: ✓ Will increase DISCOM participation on exchange Favorable P
Slide 15: Immense growth potential
Immense growth potential • Efficient price discovery has been the biggest growth driver for exchanges in the past • Discoms can source cheaper power through Exchange to meet shortages Efficient Price discovery • Industries can source competitive power to reduce their input costs • Prices at Exchange
Slide 16: Price discovery in IEX competitive versus bilateral market
Price discovery in IEX has been historically competitive compared to bilateral market IEX Volume Trader Volume IEX Wt. Avg Price Bilateral Price 60 8 50 49 49 7 50 47 45 6 40 40 4.23 4.32 3.91 39 4.42 5 4.34 36 36 294.2735 4.30 28 35 34 35 3.54 4.13 34 3.61 3.67 30 3.58 3.73 4.03 4 3.47 3.46 3.41 30
Slide 17: Flexibility in Buy and Sell
Flexibility in Buy - Telangana Flexibility in Sell- Haryana - 15th Jan ’19 (In MW) - 22nd Jan ’19 (In MW) 2500 1,000 2000 800 1500 600 1000 400 500 200 0 - 1 2 3 4 5 6 7 8 9 10 11 12 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 101112131415161718192021222324 16
Slide 18: IEX extending support during the crisis
IEX extending support during the crisis No lockdown at IEX! • Supporting distribution companies in supplying 24*7 uninterrupted power • Enabling replacement of costly PPAs through buying on exchange • Launched RTM and GTAM with high availability during the lockdown • Extensive customer engagements a
Slide 19: Providing significant savings to DISCOMs
Providing significant savings to DISCOMs 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 Exch
Slide 20: In this presentation
In this presentation: Financial Highlights Business Performance and Way Forward Regulatory Updates Customer Experience Technology Innovation Indian Gas Exchange 19
Slide 21: Regulatory Updates
Regulatory Updates CEA Procedure for Cross Border Trade of Electricity on 26.02.2021 • Entities from neighboring countries (Nepal, Bhutan, Bangladesh) can participate in DAM & TAM. • Approx. 2.5 GW of cross border transactions in FY 21 which is projected to increase to 17.5 GW in 5 years. CERC Power
Slide 22: Regulatory Updates
Regulatory Updates CERC ISTS Charges Sharing Regulations 2020 made effective from 29.12.2020 • Discoms are exempted from the applicability of Transmission charges for participation in the Short Term Market. • This will incentivize the Discoms to sell their surplus power on Exchange and purchase thro
Slide 23: Regulatory Updates
Regulatory Updates Regulatory jurisdiction of CERC and SEBI on Electricity Derivatives • As per MoP Committee recommendations, CERC to regulate all delivery-based contracts & SEBI to regulate financially settled contracts. • MoP has filed application for early disposal of the matter and given direct
Slide 24: In this presentation
In this presentation: Financial Highlights Business Performance and Way Forward Regulatory Updates Customer Experience Technology Innovation Indian Gas Exchange 23
Slide 25: Customer Experience Transformation
Customer Experience Transformation Platform access beyond 70+ Members • Anytime, Anywhere, Secure Web and Mobile access to 70+ Members, 6000+ Clients, Senior Leaders across Members and Clients, key Stakeholders in the Power Sector Personalized and Deep Data Insights for effective Decision making (Re
Slide 26: In this presentation
In this presentation: Financial Highlights Business Performance and Way Forward Regulatory Updates Customer Experience Technology Innovation Indian Gas Exchange 25
Slide 27: Customer Centric Technology and Product Strategy
Customer CustomerCentric CentricTechnology Technologyand andProduct ProductStrategy Strategy CUSTOMER CENTRIC EFFICIENT STATE OF THE ART Image To be Added • Digital Experience • Security and seamless uptime • National Open Access Registry • Secure Web and Mobile • Comprehensive Product Portfolio • I
Slide 28: Technology in transformation
Technology in transformation Automated Digital • Digital Inside, Manual Workflow • Open API integration, Mesh • Automation Modular Digital • Service Oriented Monolithic Architecture, Twins • Automated Bank Integration Desktop Based All Platforms • Web Based Portal • Trading App • Customer Survey Dri
Slide 29: In this presentation
In this presentation: Financial Highlights Business Performance and Way Forward Regulatory Updates Customer Experience Technology Innovation Indian Gas Exchange 28
Slide 30: Indian Gas Exchange (IGX)
Indian Gas Exchange (IGX) OUR VISION To lead India’s transition towards a gas-based economy by architecting next generation solutions for natural gas trading and access. 1st natural gas Automated platform 01 trading exchange 02 with cutting edge technology Efficient & transparent 03 market driven pr
Slide 31: IGX Journey
IGX Journey Jun 2020 IGX launched by Honorable Minister Shri Dharmendra Pradhan Ji Sep 2020 Gas Exchange Regulations notified by PNGRB Dec 2020 IGX authorized by PNGRB and commenced operations Jan 2021 Adani Total Gas, Torrent Gas, GAIL acquired 5% stake each Mar 2021 15 Members & 500+ clients alrea
Slide 32: IGX market model and trade updates
IGX market model and trade updates WB hub Dahej Hazira KG Basin Dabhol/ Jaigarh • ~1 lac MMBtu trade across Daily, Weekly, New Hubs: Dabhol/Jaigarh and WB Fortnightly and Monthly contracts. New • Both ex-hub and delivered transactions have Trade launches New contracts: Qtrly and beyond been executed
Slide 33: Key enablers and updates
Key enablers and updates Key enablers Updates on enablers System Operator TSO to be setup for common carrier pipelines announced in Budget 2021. Independent system operator to be appointed Uniform Taxation Hon. PM announced that Govt is committed to bring Natural Gas under GST – Feb 2021 Natural Gas
Slide 34: Opportunity
Opportunity • Under Paris Climate Agreement, govt commitment to reduce carbon emissions will promote use of Natural Gas • Government’s vision of increasing share of Natural Gas in total energy basket from 6% to 15% by 2030 will increase gas consumption in the economy from current 160 MMSCMD to 600+
Slide 35: Q&A
Q&A QIEX 34
Slide 36: Thank you
O@OVO® @IndianEnergyExchange @) buysmart@iexindia.com Mobile App (IEXApp) Available on Android and IOS Thank you ((eF) Moaneneneeccunnes 35
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