7/23/2019 Grading Methodology
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ESCO Grading methodology
Grading of ESCOs is done on three broad parameters namely Track
Record and Market Position,Organisational Risks and Financial
Risks.
A 100 point scale has been devised based on the above
parameters. Data pertaining to these parameters is
obtained from ESCOs, and meetings are carried out with key
officials in the technical, marketing andfinancial functions of
these companies. Further, feedback is also taken from customers as
well as bankers.Based on this data and interactions, the scores are
assigned to these ESCOs.
Based on the scores that are assigned, the entities are
accredited at a particular grade depending on thefollowing
cut-offs:
Grading Score
Grade 1 85 and higher
Grade 2 70-84
Grade 3 55-69
Grade 4 40-54
Grade 5 0-39
The definitions of various grades on the grading scale is as
follows:
Grading Definition
Grade 1 Very high ability to carry out energy efficiency audits
and implement energysaving projects.
Grade 2 High ability to carry out energy efficiency audits and
implement energy savingprojects.
Grade 3 Good ability to carry out energy efficiency audits and
implement energy savingprojects.
Grade 4 Below average ability to carry out energy efficiency
audits and implementenergy saving projects.
Grade 5 Poor ability to carry out energy efficiency audits and
implement energy savingprojects.
Weightage assigned to broad parameters for the
Grading/Re-evaluation Exercise
The weightages assigned to the various broad parameters for
Grading exercise are as follows:
Parameter Weightage
Track Record and MarketPosition
40
Organisational Risk 25
Financial Risk 35
