#IEX Thread⚡️
IEX - First and Largest Energy exchange in India (98% Market Share - Monopoly!!)
Automated trading platform for physical delivery of electricity, renewable power, energy certificates.
@Atulsingh_asan @caniravkaria @Coolfundoo @saketreddy @Jitendra_stock
IEX - First and Largest Energy exchange in India (98% Market Share - Monopoly!!)
Automated trading platform for physical delivery of electricity, renewable power, energy certificates.
@Atulsingh_asan @caniravkaria @Coolfundoo @saketreddy @Jitendra_stock
#IEX (2/n)
ROCE 5Yr - 63.9 %; ROE 5Yr - 45.0%
Zero Debt, Consistent FCF Generation
FII Holding - 5% in 2017 to 30% in 2020
Electricity CAGR 32% [CERC]
Revenue Breakup : 80% - Transaction Charges; 6% - Annual Subscription
Customer Base: 4000+ Industries
@vetris_stocks
ROCE 5Yr - 63.9 %; ROE 5Yr - 45.0%
Zero Debt, Consistent FCF Generation
FII Holding - 5% in 2017 to 30% in 2020
Electricity CAGR 32% [CERC]
Revenue Breakup : 80% - Transaction Charges; 6% - Annual Subscription
Customer Base: 4000+ Industries
@vetris_stocks
#IEX (3/n)
Contracts in Indian Power Market: Long Term and Short Term
Long Term via Power Purchase Agreements- 90% of Total Power Market
The target for IEX - Short Term Contracts: 10.3% of the total power market!
50.2% of Short Term Exchange via platforms
@ThetaVegaCap
Contracts in Indian Power Market: Long Term and Short Term
Long Term via Power Purchase Agreements- 90% of Total Power Market
The target for IEX - Short Term Contracts: 10.3% of the total power market!
50.2% of Short Term Exchange via platforms
@ThetaVegaCap
#IEX (4/n)
Exchanges: 5.2% of total power demand
Power markets in developed economies are in the range of 30-80% of total power demand vis a vis 5% in India!
Share of total electricity traded on IEX has become 2X in one year
53.8 billion units of electricity traded in FY20
Exchanges: 5.2% of total power demand
Power markets in developed economies are in the range of 30-80% of total power demand vis a vis 5% in India!
Share of total electricity traded on IEX has become 2X in one year
53.8 billion units of electricity traded in FY20
#IEX (5/n)
The rest of the short-term market share is captured by traders, DISCOMS, DSMs.
Exchanges consistently capturing short market share (10% in 2010 to 50%)
Voume Traded - 5Yr CAGR for traders+discoms = 5% VS 14% for IEX
The rest of the short-term market share is captured by traders, DISCOMS, DSMs.
Exchanges consistently capturing short market share (10% in 2010 to 50%)
Voume Traded - 5Yr CAGR for traders+discoms = 5% VS 14% for IEX
#IEX (6/n)
Benefits of Exchange Platforms :
Efficient price discovery
Increases the accessibility and transparency
Enhances the speed and efficiency of trade execution
Large number of participants
Benefits of Exchange Platforms :
Efficient price discovery
Increases the accessibility and transparency
Enhances the speed and efficiency of trade execution
Large number of participants
#IEX (7/n)
Growth Factors:
Business diversification- IGX
Deployment of low-carbon technologies- Wind and Solar
40% of RE energy by 2030
Hybridization requires technology-driven apps and automation
Discoms turning to energy exchanges, shun costly PPAs
No new PPAs signed
Growth Factors:
Business diversification- IGX
Deployment of low-carbon technologies- Wind and Solar
40% of RE energy by 2030
Hybridization requires technology-driven apps and automation
Discoms turning to energy exchanges, shun costly PPAs
No new PPAs signed
#IEX (8/n)
IGX
Online gas trading platform for physical delivery of natural gas
GoI policy targets to increase the share of natural gas in India’s energy basket from 6.5% to 15% in 5 years
GAIL, Adani Total Gas, Torrent Gas recently acquired a 5% stake each in IGX
IGX
Online gas trading platform for physical delivery of natural gas
GoI policy targets to increase the share of natural gas in India’s energy basket from 6.5% to 15% in 5 years
GAIL, Adani Total Gas, Torrent Gas recently acquired a 5% stake each in IGX
#IEX (9/n) ⛽️
IGX
MoPNG has expressed the need for a Gas Trading Hub
Vision: A robust gas trading exchange enabling seamless transactions to help GoI realize this ambitious target.
State of the art and proven exchange technology backed with long experience in electricity
IGX
MoPNG has expressed the need for a Gas Trading Hub
Vision: A robust gas trading exchange enabling seamless transactions to help GoI realize this ambitious target.
State of the art and proven exchange technology backed with long experience in electricity
#IEX (10/n)
Electricity consumption to increase : ⚡️ ⚡️
Per capita consumption expected to double in the next 5-6 years
Consumer demand growth (Govt Schemes like Saubhagya, rural electrification)
Economic activity will accelerate
Rapid urbanization!
Electricity consumption to increase : ⚡️ ⚡️
Per capita consumption expected to double in the next 5-6 years
Consumer demand growth (Govt Schemes like Saubhagya, rural electrification)
Economic activity will accelerate
Rapid urbanization!
#IEX (11/n)
Products :
Day-Ahead Market - Delivery for next day
Term-Ahead Contracts - For delivery up to 11 days
Renewable Energy Certificates - Green Attributes as Certificates
Real-Time Market - Delivery within an hour
Green Term Ahead Market
Products :
Day-Ahead Market - Delivery for next day
Term-Ahead Contracts - For delivery up to 11 days
Renewable Energy Certificates - Green Attributes as Certificates
Real-Time Market - Delivery within an hour
Green Term Ahead Market
#IEX (12/n)
Threats :
Short Term Market Share not growing as expected.
If the market coupling is implemented, the market share of IEX will be reduced significantly
Regulatory Risk
Threats :
Short Term Market Share not growing as expected.
If the market coupling is implemented, the market share of IEX will be reduced significantly
Regulatory Risk
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