Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Investor Presentation (September 2024)
40 slides from Indian Energy Exchange's investor presentation, Sep 11, 2024
Slide 1: Exchange filing cover letter for Investor Presentation September 2024
Dated: September 11, 2024 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 0
Slide 2: IEX Investor Presentation September 2024
IEX Investor Presentation September 2024
Slide 3: In this presentation
In this presentation: Sector and Business Update Customer Centricity and Technology Financial Performance Human Resources Indian Gas Exchange 2
Slide 4: Power Sector Summary
Power Sector Summary Generation Mix Transmission Distribution & Consumption Indian Generation Mix - FY'24 World’s Largest Network Reforms Underway Nuclear Biogas 3% Hydro 1% • Inter-reg. trans. Cap.: 116.5 • Declining Avg. AT & C Losses: Wind 8% GW (Mar’24) 5% o FY’21 – 22.3% • 4.81 Lakh CKM of tran
Slide 5: Energy Sector Transition
Energy Sector Transition Nuclear 15 GW 2% Nuclear 8GW 2% Thermal Cap 327 RE & Hydro RE & Hydro 38% Thermal 197 507 Cap 243 44% 60% 54% July’2024 Installed Capacity FY 2030 CEA Projections 448 GW 849 GW *RE also includes BESS Source: CEA Government aims to increase share of non-fossil fuel in India's
Slide 6: Renewables Are Leading Energy Sector Transition
Renewables Are Leading Energy Sector Transition Technology Progress Changing Preferences • Low Carbon Technologies – Wind, • Shift Towards RE and storage Solar, Hybrid • Electrification of economy – • Falling RE cost driving higher EVs, roof top solar, cooking, penetration railway traction, data cen
Slide 7: Power Exchanges Emerge as the Most Preferred Option
Power Exchanges Emerge as the Most Preferred Option Exchanges (BU) Bilateral (BU) DSM (BU) CAGR: 17.5% CAGR: 3.3% CAGR: 2.3% 79 121 101 103 67 65 25 25 26 28 58 60 23 23 80 44 54 56 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 Share in 7% 4% 2% Generation
Slide 8: IEX: India's Premier Technology-led Electricity Marketplace
IEX: India’s Premier Technology-led Electricity Marketplace ➢ Nation wide, automated and transparent trading Robust Ecosystem platform for physical delivery of electricity, renewables & certificates ➢ Commenced operations in 2008; CERC regulated ➢ Publicly listed company – 2017 (NSE and BSE) 7,900+
Slide 9: IEX Changing Product Mix
IEX Changing Product Mix Certificates, Certificates, 8% 13% DAC,4% Green, 7% DAC, TAM, 9% DAM, DAM, Green, 3% 49% TAM , 41% 3% 7% RTM, 27% RTM, 29% Total Volume: FY’24: 110.1 BU Total Volume: YTD FY’25: 55.6 BU • RTM & Green markets registered substantial growth of 28% and 154%YoY respectively in YT
Slide 10: Stable Prices on IEX Despite High Demand
Stable Prices on IEX Despite High Demand 800.0% 760 700.0% 6.76 740 746 600.0% 6.30 5.39 720 4.95 500.0% 700 5.16 699 400.0% 4.64 680 300.0% 660 659 200.0% 640 100.0% 620 0.0% 600 YTD FY'23 YTD FY'24 YTD FY'25 Power Consumption (BU) DAM MCP (Rs/unit) RTM MCP (Rs./unit) 9 YTD: April-August
Slide 11: Growth Levers for IEX
Growth Levers for IEX (1) (2) (3) (4) (5) (6) Increase in New Products Diversity in Ample Re-designing Energy Power & Regulatory Demand/Supply Supply Side electricity market Transition Consumption Developments Patterns Availability • High GDP • TAM upto 11 • Report on • Changing • Diurnal Variation
Slide 12: Growth Driver 1: Demand Increase
Growth Driver 1: Demand Increase India placed as the most promising economy on the global map 2500 250 ➢ Industrialization 2300 ✓ High GDP growth of about 7% expected to drive 1930 2000 200 electricity 1718 1622 ✓ Core sector, traction, EV, Roof Top Solar, Data Centres 1506 to drive electricity cons
Slide 13: Growth Driver 2: New Products & Regulatory Developments
Growth Driver 2: New Products & Regulatory Developments TAM upto 11 ➢ Trade up to 11 months shall help shift DEEP volume to Exchanges. Months ➢ Currently DEEP Platform trades is about 40 BU (FY24 data) ➢ Filed petition in CERC for launching Green RTM Green RTM ➢ Additional market for RE developers,
Slide 14: Growth Driver 3: Roadmap for Deepening Market
Growth Driver 3: Roadmap for Deepening Market MoP Report of the Group on Development of Electricity Market in India, 2023 Short Term Medium Term Long Term (up to 1 year) (1 -2 years) (2 years and beyond) • Market based Ancillary • Utility Demand Response • Overall interaction of Services Energy & re
Slide 15: Growth Driver 4: Energy Transition
Growth Driver 4: Energy Transition • Future demand requirements will predominantly be met through RE sources. • European experience of renewables shows adoption of Market Models to support Energy market-based models increased RE penetration. Transition • Capacity awarded through CfD auction in UK st
Slide 16: New Market Models: FDRE & RTC, BESS
New Market Models: FDRE & RTC, BESS Firm Dispatch RE & Round The Clock RE Battery Energy Storage Systems (BESS) • FDRE mandatorily includes ESS to provide dispatchable RE power such as assured peak power, load following etc. • Charging (Non-Peak) and Discharging (Peak Hours) of BESS can be done thro
Slide 17: Growth Driver 5: Diversity
Growth Driver 5: Diversity Regional Diversity All India Demand Profile 265 Demand Met (GW) - 30th May 2024 Consumption: 245 225 • North India has high demand in Summers/Paddy season 205 • Lift irrigation/Agricultural demand of Telangana between 185 Demand Met (GW) - 14th June 2019 August to October.
Slide 18: Growth Driver 6: Increasing Sell Side Liquidity
Growth Driver 6: Increasing Sell Side Liquidity • Supply side constraints continued to ease through FY’24 and YTD ( April-August) FY’25 due to various measures taken by MoP. • FY’24 coal production increased 12%YoY to ~1,000 MT; YTD (April-August) FY’25 production higher by 7% YoY at 384 MT. • Impor
Slide 19: Other Opportunities for Growth
Other Opportunities for Growth ▪ Agri-load shifting & ToD tariff will shift demand to solar hours. Load Shifting to Solar Hrs ▪ Increase in cleared volumes during solar hours. ▪ CEA issued final Guidelines for Resource Adequacy (RA) Planning Framework for Capacity Centre and States. Market ▪ Leads t
Slide 20: Diversification
INNOVATION TECHNOLOGY FUTURE Diversification
Slide 21: Diversification
Diversification ✓ 1st Natural Gas trading exchange ✓ 45 registered Members and 170+ registered Clients ✓ Automated platform with cutting edge technology; Indigenous price benchmark ✓ ICX formed in December 2022 to facilitate voluntary carbon trade. ✓ India is a seller of carbon credits (15-20% of th
Slide 22: In Summary
In Summary Growth Levers for IEX: 1 Increase in Demand and Supply 2 Large Capacity Addition in RE and Storage and Declining Costs 3 Favorable Regulatory and Policy Framework for Market Development 4 Diversification 21
Slide 23: In this presentation
In this presentation: Sector and Business Update Customer Centricity and Technology Financial Performance Human Resources Indian Gas Exchange 22
Slide 24: Customer Centricity
Customer Centricity • Capacity building workshops for all Discoms • Promoting Open Access through state wise conferences and seminars • Web Platform “EnergX” • Digital On-boarding • Financial Reconciliation • Web-based Bidding for all Products across Electricity and Certificate segments • Easy acces
Slide 25: Technology – Key Updates
Technology – Key Updates • DC to DR switch in a real-time mode • Application level and Technology Infrastructure level enhancements to ensure High Availability in the Real Time Market (RTM) • Implementation of the best-in-class Perimeter Firewall and Panorama solutions to enhance the Security Infras
Slide 26: In this presentation
In this presentation: Sector and Business Update Customer Centricity and Technology Financial Performance Human Resources Indian Gas Exchange 25
Slide 27: Robust Performance
Robust Performance Volume (BU) Operating Revenue (INR Cr) +16% +15% 110 Electricity 449 102 97 426 401 Certificate 75 317 60 257 96 102 +21% +19% 91 74 25 30 124 54 104 24 28 6 1 6 6 8 1 2 FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1FY25 FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1FY25 Operating Expenses (INR Cr) PAT (
Slide 28: EPS and Expenses Performance
EPS and Expenses Performance Total Income (INR Cr) Operating Expenses % to Toal Revenue +17% 551 16% 15% 478 474 12% 12% 12% 12% 357 11% 297 +21% 127 154 FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1FY25 FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1FY25 EPS (INR) Technology Cost (INR Cr) +5% Opex +18% 17.4 Capex 3.84 16.
Slide 29: Wealth for Shareholders
Wealth for Shareholders Net Worth (INR Cr) 948 Continuous Payout to shareholders Buy Back of Dividend Total Cash % of PAT +25% S.No F.Y. PAT 784 Shares Per Share Pay-out Distributed 702 1 2023-24 341 - 2.5 223 65% 531 2 2022-23 293 98 1 187 64% 390 3 2021-22 303 - 2 180 59% 4 2020-21 213 - 4 119 56%
Slide 30: Shareholding Highlights
Shareholding Highlights Shareholding Structure as on June 30, 2024 Major Shareholders Holding > 1% S.No. Name of Shareholders % of Equity OTHERS 1 SBI CONTRA FUND 8.53 QIB 5% 5% 2 DPVL VENTURES LLP 7.02 INDIVIDUALS 3 PARAG PARIKH FLEXI CAP FUND 5.06 36% 4 DALMIA CEMENT BHARAT LIMITED 4.17 DII 24% 5
Slide 31: In this presentation
In this presentation: Sector and Business Update Customer Centricity and Technology Financial Performance Human Resources Indian Gas Exchange 30
Slide 32: Recent Employee Development Initiatives
Recent Employee Development Initiatives Capacity Leadership Skill Cross Border Culture Knowledge Building Development Enhancement Building Exchange Violet LMS LEAP REDIS Study tours to Business Comm. IEX Academy i Lead LINUX Berlin, Turkey and Effective Customer ET Masterclass ELP Energy Storage Sin
Slide 33: Great Place to Work – 2nd Year in a Row
Great Place to Work – 2nd Year in a Row Survey Parameters FAIRNESS PRIDE Anonymous survey through GPTW India RESPECT CAMARADERIE CREDIBILITY Our testimony of employee satisfaction 32
Slide 34: In this presentation
In this presentation: Sector and Business Update Customer Centricity and Technology Financial Performance Human Resources Indian Gas Exchange 33
Slide 35: Gas Exchange: Overview
Gas Exchange: Overview 6 Regional Gas Hubs − 6 Regional Gas Hubs Hubs & Delivery − Multiple active delivery points within 3 points regional hubs ( Western, Southern, Eastern) 6 Contracts Day-Ahead| Daily | Weekly | Weekday | Fortnightly | Monthly Barmer 12 consecutive monthly contracts are available
Slide 36: IGX Members and Clients
IGX Members and Clients IGX has 45 registered Members and 170+ registered Clients Proprietary Members Trading & Clearing Members Clients *Selected representation 35
Slide 37: Business Performance Overview
Business Performance Overview Yearly Volumes trend (Mn MMBTU) Quarter (YoY) Volumes trend (Mn MMBTU) 60 50.9 50 40.8 40 30 20 12.2 11.8 10 4.3 0 FY22 FY23 FY24 Q1FY24 Q1FY25 Data till 30th Jun 2024 36
Slide 38: Future Plans
Future Plans Long Duration Contracts (LDCs): ➢ Have filed application with PNGRB for 3M, 6M and 12 M contracts linked to benchmarks- JKM, WIM, Brent, GIXI. ➢ PNGRB approval awaited. CBG and Certificates trading: ➢ MoPNG has prepared a draft of the scheme. The final notification is awaited. ➢ IGX can
Slide 39: Growth Levers
Growth Levers Government’s target Domestic Gas Infrastructure Development Market Developments for gas sector Production • Increasing share of • LNG terminals capacity is expected • Further growth • Natural Gas under GST Natural Gas in energy to grow from current 47.7 MMTPA anticipated with basket fr
Slide 40: Thank You
Thank You 39
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