Recording and presentation from recent IGX webinar.
IEA_Gas Webinar_IGX_29-Jan_ 2021_Presentation.pdf (376.0 KB)
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Good to hear the demand for 2021 and business prospects as indicated in the presentation 
Where can i get the data about expiring purchase power agreements(PPAs) in next 2-3-5 years.
Idea is after the expiry of these orders majority of this demand might met through IEX platform.
This will support the volumes at IEX.
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even i am looking for this data, even how many PPAs done yoy growth will give some idea …
This below list shows active PPAs with commencement dates for MSEDC (Maharashtra). Looking at cost / unit for recent contracts, it doesn’t look like IEX has an advantage. I guess cost will be similar for other states.
https://www.mahadiscom.in/list-of-generators-having-epa-ppa-with-msedcl/
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The reason that Reliance recently sold its gas through CRIS’s e-auction and not through IGX is because DGH currently mandates that e-auction for domestic gas be only done through these 3 players notified by DGH. Link - https://gasbidding.auctiontiger.co.in/BID/
Gas markets need to mature much more before any significant contribution from IGX can kick in. Will take at least 3-4 years in my opinion.
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IEX Monthly Update – February 2020
IEX Highlights
• Estimated revenue from transactions is up 26.8% for the FY till January end as compared to the same period last FY. Revenue has been supported by DAM, TAM and RTM volumes.
• DAM - On a cumulative basis, FY21 volume and estimated revenue till January end are 19.3% greater than revenue in FY20 for the same period.
• TAM – On a cumulative basis, FY21 volume and estimated revenue till January end are down 36.9% compared to revenue and volume in FY20 for the same period. The uptick in volumes has helped reduce the figure from 46% reported in last month’s update.
• There have been no REC transactions since June 2020.
• RTM – RTM continues to be a strong revenue generator. RTM clocked a 9.2% MoM growth.
• G-TAM – After having dropped 45% MoM in December, volumes are now up 6% MoM.
• FY21 estimated revenue contribution break up:
o DAM – 82.2% (-)
o TAM – 4.6% (+)
o REC – 0.5% (-)
o RTM – 11.7% (+)
o GTAM-1.1% (+)
CERC Short term market update (November 2020 report):
• The short-term market witnessed a 25.1% rise in November compared to the same period last year while the long-term market witnessed a marginal decline in volumes of 0.7% in the period. The overall market growth rate was 1.9%.
• IEX’s DAM market share recovered to above 99% in last month’s update and remains at the same level.
• While IEX’s TAM market share has been under pressure from 90% in March 2020 to less than 20% in September, a marginal recovery to above 20% was recorded. This has continued into November.
• No REC transactions have taken place.
• IEX has a 100% market share in RTM for the fourth consecutive month.
While extracting information,We shall focus on PPAs for those units which were commissioned earlier than 1995 and cost per unit shall be more than 3 per unit.
Going forward most (if not all) power producers will sell majority of their electricity on exchanges as opposed to PPA agreement with discoms. This is cause discoms collectively owe power producers about $17 Billion in unpaid bills. Selling majority of new (renewable) power directly on exchange helps power producers guarantee getting paid as opposed to 25 year PPA contracts.
Take for example, NTPC. It has decided to sell almost all of its new renewable capacity on the exchange (IEX) rather than via PPAs.
The volumes on IEX are bound to grow further as renewable capacity in India grows.
Also, govt is opening up discom space by allowing private players entry. Most of these players will purchase electricity on the exchange and not via PPAs.
Image Source: A report from The-Ken
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From Wikipedia. Installed capacity as of 1997 would be target for next 2 years for volume moving to IEX. How much of it will come to IEX is subject to Statistical Analysis.
Can you share the source?
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Source is The Ken. Requires a subscription to access.
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IEX & PXIL are the only two platforms approved by CERC. Looks like IEX is making bigger gains in nonconventional power trading which would be interesting to see.
The only negative for IEX is lack of pricing power, however, if volume builds up going forward then big gains for power exchange platforms. CAC is not significant but LTV is higher if the participant realizes the gain by listing the entity on the platform.
The type of business IEX is handling seems interesting with a lot of potential for future growth.
Can someone help me throw some light as to who is the Promoter for this company?..was trying to figure out …but was not successful.
Apart from IEX and PXIL, PTC also seems to have got approval from CERC for carrying out this kind of business…
In such a scenario, whether IEX business would get impacted?
Discl: Have aTracking position in IEX…exploring if I can add further for long term investment…
Yet another positive news here.
IEX onboards third strategic investor in IGX - India’s first authorized and regulated Gas Exchange
GAIL acquires 5% stake from IEX in IGX showcasing the strong potential of gas markets in the country
This will give them first mover advantage and once players like GAIL buys stake, they could get much better support to scale and do many strategic moves to take this forward.
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Do you think these strategic investors are likely to invest in potential competitors of IGX? (competitors will definitely come and most likely be brought in by govt to avoid dependency on single player like they’re doing in electricity exchanges)
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Question to people. Will they spin this off as a separate company? IEX for electricity and IGX for gas?
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Exchanges work on network effects just like social platforms like Facebook and Whatsapp. You use Whatsapp cause people you know are on Whatsapp.
IEX had the first mover advantage and as a platform has 99% of the current electricity exchange market in India. Even if 10 other players start an electricity exchange tomorrow they won’t be able to gain any considerable market share cause
A. All the buyers and sellers are on IEX already
B. No one can out compete each other by slashing prices as these are fixed by the regulator
IEX has almost negligible capex costs and has built another platform like IGX with just couple of crores investment.
It’s basically a cash cow now for its investors and dividends per year will keep rising along with its share price. IEX only needs to focus on increasing volumes which it will be able to do with minimal effort considering India’s energy requirements are growing.
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Thanks for the inputs…
Can you please help me understand as to who owns this company i.e. who are the promoters of the company currently …
Shareholders are the promoters, it’s run by a professionally managed Board of Directors, similar to how ITC is run.
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