Indian Energy Exchange Limited

rs,

outhern Park, District Centre, Saket, New Delhi–110017, India Corporate Office: 9th Floor, Max Towers, Sector 16B, Noida, Uttar Pradesh–201301 , India Tel: +91-011-3044 6511 | Tel: +91-120-4648 100 | Fa

33%

ft Digitisation Intelligent Apps to Optimize Plants and Grid Shifting Energy Mix % Renewable 33% 41% 50% FY 2010 FY 2023 FY 2030 Installed Capacity ➢ 172 GW installed renewable capacity (in

41%

igitisation Intelligent Apps to Optimize Plants and Grid Shifting Energy Mix % Renewable 33% 41% 50% FY 2010 FY 2023 FY 2030 Installed Capacity ➢ 172 GW installed renewable capacity (includi

50%

sation Intelligent Apps to Optimize Plants and Grid Shifting Energy Mix % Renewable 33% 41% 50% FY 2010 FY 2023 FY 2030 Installed Capacity ➢ 172 GW installed renewable capacity (including

172 GW

Shifting Energy Mix % Renewable 33% 41% 50% FY 2010 FY 2023 FY 2030 Installed Capacity ➢ 172 GW installed renewable capacity (including large hydro) in FY23 ➢ India aspires to achieve 500 GW o

500 GW

➢ 172 GW installed renewable capacity (including large hydro) in FY23 ➢ India aspires to achieve 500 GW of renewable capacity by 2030 3 In this presentation: Sector in Transition Electricity Value

27 GW

172 41.3 FY 2030 CEA Proj. 817 267 32.7 506 61.9 Upcoming Coal Cap GW (in next 3 Yrs) 27 GW - World’s largest network Reforms Underway ➢ Inter-reg. trans. Cap.: 112.3 GW ➢ Avg. AT & C Los

112.3 GW

GW (in next 3 Yrs) 27 GW - World’s largest network Reforms Underway ➢ Inter-reg. trans. Cap.: 112.3 GW ➢ Avg. AT & C Losses: 22% presently ➢ 4.63 Lakh CKM of trans. lines ➢ Green Corridor: RE rich s

22%

orld’s largest network Reforms Underway ➢ Inter-reg. trans. Cap.: 112.3 GW ➢ Avg. AT & C Losses: 22% presently ➢ 4.63 Lakh CKM of trans. lines ➢ Green Corridor: RE rich states; projects for evacu

4.63 Lakh

work Reforms Underway ➢ Inter-reg. trans. Cap.: 112.3 GW ➢ Avg. AT & C Losses: 22% presently ➢ 4.63 Lakh CKM of trans. lines ➢ Green Corridor: RE rich states; projects for evacuation of RE into Nation

15%

s. lines ➢ Green Corridor: RE rich states; projects for evacuation of RE into National grid to 15% ➢ Reduction in Outstanding dues & ensuring future payments ➢ Liquidity Infusion Schemes ➢ 99.

99.9%

15% ➢ Reduction in Outstanding dues & ensuring future payments ➢ Liquidity Infusion Schemes ➢ 99.9% times no congestion ➢ Choice to Consumers ➢ Electrification as Decarbonization Lever: EV, Cooki

“An initial capacity (~ 1000 MW) to be tendered by nodal agency as a pilot project under the single price option.”

“While the Tertiary Reserve Ancillary Service (TRAS) market segment on all the Power Exchanges will be rolled out in June, a market-based mechanism for secondary frequency response would provide faster response than conventional sources.”

“Medium Term Introduction of Standardised Exchange-Based Capacity Contracts: Standardized exchange- based capacity contracts can be introduced for short-term trading of power.”

“of members Active clients 40 190+ Domestic Gas Ceiling Price ➢ Commenced trading on 23rd May’22 ➢ Traded Volume: 29.1 Million MMBtu ➢ India’s First Gas Index - GIXI 29 GIXI - IGX Gas Index Launched on 19th December 2022 GIXI represents volume weighted average price for all gas traded on any day (excluding domestic ceiling price gas) GIXI represents prices for all hubs; for regional hubs will be named as GIXI West etc.”

“For months, will be named as GIXI-Jan23 etc.”

“➢ Will help India achieve its target of reducing the emission intensity of its GDP by 45% by 2030 to limit global warming to 1.5 degrees Celsius.”

“Going forward, IEX will continue to work towards building a sustainable and efficient energy future for India.”

In this presentation

6

Bilateral

1

Exchanges

1

Firmness in Ancillary Reserves

1

Efficiency

1

Seasons

1

In this presentation

Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 2 Sector in Transition Decarbonisation Deployment of Low-Carbon Technologies - Wind and Solar Decentralisation Small-scale Generation Across T&D Network Democratisation Empowered Consumers - Economic Power Shift Digitisation Intelligent Apps to Optimize Plants and Grid Shifting Energy Mix % Renewable 33% 41% 50% FY 2010 FY 2023 FY 2030 Installed Capacity ➢ 172 GW installed renewable capacity (including large hydro) in FY23 ➢ India aspires to achieve 500 GW of renewable capacity by 2030 3

In this presentation

Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 4 Electricity Value Chain Generation Transmission Distribution & Consumption Installed Capacity Energy Transition As on 31st Dec’22 Total GW Coal Cap GW Coal (%) RE & Hydro GW RE & Hydro % 416 237 57 172 41.3 FY 2030 CEA Proj. 817 267 32.7 506 61.9 Upcoming Coal Cap GW (in next 3 Yrs) 27 GW - World’s largest network Reforms Underway ➢ Inter-reg. trans. Cap.: 112.3 GW ➢ Avg. AT & C Losses: 22% presently ➢ 4.63 Lakh CKM of trans. lines ➢ Green Corridor: RE rich states; projects for evacuation of RE into National grid to 15% ➢ Reduction in Outstanding dues & ensuring future payments ➢ Liquidity Infusion Schemes ➢ 99.9% times no congestion ➢ Choice to Consumers ➢ Electrification as Decarbonization Lever: EV, Cooking, Traction 5 50% Non-fossil fuel based Capacity by 2030 One Nation One Grid One Price Regulatory Strengthening Installed capacity has grown at f

Exchanges

Real Time (1hour) – 90 days 4% 7% DSM 2% Bilateral & Banking Transactions Day Ahead Market, Real Time, Intraday, Contingency, Term Ahead up to 90 days, GTAM, GDAM, High-Price DAM, and Certificates Deviation Settlement/ Unscheduled Interchange Up to 25 years 87% Long-term PPA Source: CERC MMR Report till Dec’22 8 8 Fast Growing Exchange Markets Exchanges (BU) Bilateral (BU) CAGR: 20% CAGR: 2% DSM (BU) CAGR: 1% 101 80 75 56 67 58 60 47 44 25 24 25 23 23 48 54 56 21 FY18 FY19 FY20 FY21 FY22 FY23* FY18 FY19 FY20 FY21 FY22 FY23* FY18 FY19 FY20 FY21 FY22 FY23* Source: CERC, MMR *FY23 data till Dec’22; CAGR Till FY’22 Driven by competition and flexible procurement, the Exchange markets constitute >50% of ST power market. 9 Immense Potential to Deepen India’s Power Market 91% 49% 47% 39% 34% 23% 15% 7% Nordpool Germany UK Netherlands Switzerland Belgium France India* Note: Data for India till Dec’22 Source: CRISIL Study Markets are in the range of 30-80% in developed economies. At 7%, India ha

In this presentation

Sector in Transition Electricity Value Chain IEX: Who We Are Indian Gas Exchange (IGX) International Carbon Exchange (ICX) Way Forward 13 India’s Premier Technology-led Energy Marketplace ➢ Nation wide, automated and transparent trading platform for physical delivery of electricity, renewables & certificates ➢ Commenced operations in 2008; CERC regulated ➢ Publicly listed company – 2017 (NSE and BSE) ➢ ISO 9001:2015, ISO 27001:2013, ISO 14001:2015 ➢ DAM & RTM Market Share : >99% ➢ Overall Electricity Market Share incl DAM, TAM, RTM, Green Market FY23: 88.4% ➢ Electricity volume CAGR ~ 30% since 2008 ➢ FY23 Electricity Volume: 96.8 BU Robust Ecosystem 7,500+ Registered participants 4,500+ Commercial & Industries 1,500+ RE Generators & Obligated Entities 600+ Generators 30% Volume Growth CAGR since 2008 55+ Discoms (all) 99% Market Share in DAM 100+ ESCert Entities 100% Market Share in RTM Leading the future of energy with innovation and technology 14 Benefitting Power Sector….and the Na

Firmness in Ancillary Reserves

For a power system of India’s size with increasing levels of RE, it is necessary to ensure firmness of reserves. Current framework of accessing AR in adequate. Key Issue - 5 High Reliance on Self-Scheduling,

Efficiency

Lower Operational Current practice of fragmented control areas with Discoms resorting to self-scheduling creates sub-optimal dispatch. Need to create system cost optimisation through creation of single merit order of generation plants. 01 Long Term PPAs Key Issues to Re- design Electricity Markets 02 Resource Planning 05 Self- Scheduling 04 Ancillary Reserves 03 Energy Mix Key Issue - 1 of Inflexible, Dominance Longer Duration Contracts with Discoms: Long Term PPAs recognised as inefficient especially for integrating renewables. Key Issue - 2 and States Resource Adequacy Planning in Across Centre