Announcement under Regulation 30 (LODR)-Investor Presentation

Dear Sir / Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the Investor Presentation that will be made during the Annual Analyst Meet 2022 scheduled to be held today i.e., September 07, 2022. The above information will also be made available on the website of the Company: www.iexindia.com You are requested to take the above information on record.

17 days ago

INVESTOR PRESENTATION

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Sentiments detected

Positive 30
  • Electricity Growth Drivers India is placed as the most promising economy on the global map:

  • Rapid urbanization/ Rural Electrification ✓ 17 of 20 world’s fastest growing cities in India ➢

  • Consumer demand growth ✓ Last mile connectivity –Power on 24x7 basis ✓ FY22 energy consumption growth 7.8% YoY ➢ Power Demand Projection for FY 23-30 ✓ Till FY 27 electricity intensity factor of 90% over projected GDP growth 2,158 1,876 1,667 1,135 1,205 1268 1,284 1,271 1,370 1,470 ✓ FY 28 onwards – CEA demand growth projections ✓ Expected to grow at CAGR of 6% FY17 FY18 FY19 FY20 FY21 FY'22 FY'23 FY 25 FY 27 FY 30 India’s Total Energy Consumption (BU) 5

  • In last 5 years, as against electricity consumption increase of 3.8% Exchange volume increased by 20% 6

  • ➢ TAM Volume increased by 105% in first 5-month YoY basis ➢ Volume likely to shift to DAM/RTM with improvement in supply & implementation of sharing regulation 9

  • Monthly average DAM price increased significantly in Oct 21, Mar – Jun 22 due to energy crisis ➢

  • Lower prices in last 3 years helped DISCOMs optimize their power procurement cost ➢

  • Recently in July/Aug’22, increased renewable/hydro generation and monsoon has resulted in lowering of prices at IEX 10

  • International Coal prices have shot up by more than 192% YoY basis ➢

  • Variable cost of imported coal- based generation has increased over 100% from Rs. 4.5/kWh to Rs. 9/kWh ➢

  • LNG price increased to record high level of 54$/MMBTU, 200% inc YoY ➢

  • ➢ E-auction Prices increased 350% over notified prices in FY23 12

  • July’22 and Aug’22 production increased by 12% and 9% YoY resp ➢

  • As inventory at power plant has increased, MoP has eased coal import norms – no additional import ➢ Coal position expected to improve in short to medium term: ✓ Mines and Minerals Act, 1957 amended to allow sell up to 50% of their annual production after meeting the requirement of the end use plant.

  • Easing supply constraints ✓ Improvement in coal production and higher inventory

  • will result in increase in sell by both Discoms & IPPs ✓ IPPs sell will provide Round the Clock supply resulting in better availability & lower prices in peak hours ✓ Lower prices will lead to increase in Discoms buy as they will bid to optimize/ replace costlier power ✓ Open Access clearance will increase with softening of prices ➢ GNA implementation ✓ Implementation of GNA will lead to avoidance of duplication of transmission charges in DAM/RTM ✓ DAC volume will shift back to DAM/RTM where IEX command close to 100% market share 15

  • Policy Advocacy to Enhance Liquidity in the Spot Market ➢ Pool based CfD mechanism for RE capacity addition through the market ➢ Merchant RE capacity addition – 25% merchant capacity in all PPAs ➢

  • Resource adequacy, promote RE, hedging opportunities leading to deepening of Markets 18

  • This result will give a major push to Merchant Renewable.

  • ➢ IEX working with SECI & MNRE to promote use of Market options for storage tenders – Recently SECI’s storage tender of 500 MW provides for 40% open capacity which can leverage Power Exchange’s market 21 ➢ Storage system will provide liquidity in the peak hours

  • Way Forward (1/2) Growth from recently launched products

  • Long Duration Contracts: June’22 ➢ Ancillary Market, Gross Bidding Contract ➢ Launch of Derivatives will provide price hedging opportunity and lead to lower volatility in prices thereby increasing liquidity in the spot market ➢ Capacity Market ➢ RE capacity through exchanges; Contract for Differences

  • Robust volume growth over next 5 years expected ➢ Coal Exchange ➢

  • Way Forward (2/2) Favorable Policy and Regulatory Initiatives Coal Supply Demand for

  • Spot markets share to increase significantly as per Draft NEP 2021 ➢ GNA Regulation, Sharing Regulations, Grid Code, Late Payment Surcharge Rules, and sale of un requisitioned power on exchanges will help deepen the power markets

  • Government of India aims to increase coal production from current 780 Mn tonne to 1.2 Bn tonne by 2025 to further drive the availability of coal; will lead to lower electricity prices on the Exchange

  • The electricity consumption grew by 3.8% in last 5 years and is expected to further increase by 6% in next 8 years 23

  • Achieved Break-even in first year of operations ➢

  • 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 current 160 MMSCMD to 500+ MMSCMD ✓ With completion of 11th CGD bidding round >90% population will be covered in next 6 years ✓ LNG terminal capacity is expected to grow from current 42.5 MMTPA to around 72 MMTPA in 3 years ✓ Transmission pipeline network is expected to grow from ~20,000 km to around 35,000 km by 2023 ✓ Declaration of Open Access in CGD Areas ➢ Gas current spot market share is ~13 %; estimated spot market share by 2030 will be ~20% ➢ Gas spot market size by 2030:

  • Development of robust infrastructure along with ramp up in gas demand shall enable short term trading of gas in India 42

Negative 10
  • AT & C Losses: 21% presently to 15% ➢

  • Reduction in Outstanding dues & Total GW 403 817 Coal Cap GW 211 266 Coal (%) 51.5 32.6 RE & Hydro GW 160 506 RE & Hydro % 39.7 61.9 ➢

  • DAM RTM TAM Green Total ➢ Temporary Shift in Volume from DAM to DAC segment was observed due to-

  • ✓ Firm tie up due to uncertainty of availability in peak hours ✓ Double charging of transmission charges in collective transactions

  • Similar trends observed globally due to severe energy crisis led by increased demand and supply disruption ➢

  • Apr-22 May-22 Jun-22 Jul-22 Aug-22 ✓ OA volume without captive : till Jul’22 dropped by 58% ✓ Significant reduction in optimization volume by DISCOMs – Gujarat, Andhra Pradesh, Maharashtra, Punjab, Haryana 11

  • Supply Side Constraints leading to high price discoveries

  • Geo-Political factors have impacted international coal and electricity prices worldwide HBA Index ($/T)

  • Quantity offered through e-auction has reduced to 12 MT from 36 MT, reduction by 65% YoY

  • Coal supply & Inventory ➢ Coal production increased by 26.5% YoY and dispatch to power sector increased by 21.3% in first 4 months of this fiscal whereas coal generation 30 has increased at a lower rate of 16% 25 20 ➢ Captive mines production increased by 66% YoY in first 4 months 15 4 10 Coal Inventory at Power Plants 9 910 11 11 12 10 8 6 4 5 ➢ Coal production generally goes down during July/Aug – no impact this 0 year.

Mentioned Phrases & Organizations

Important keywords detected (20+)

market (42)
coal (25)
electricity (24)
energy (23)
power (23)
volume (22)
iex (20)
gas (20)
green (16)
increased (15)
india (14)
price (14)
total (14)
dam (14)
rtm (14)
access (14)
presentation (13)
based (13)
capacity (13)
prices (13)

Organizations identified (10+)

INR Cr (5)
Discoms (4)
GDAM (3)
SECI (3)
CERC (2)
IGX (2)
API (2)
Vineet (1)
Avanta Business Centre (1)
First Floor (1)

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