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 their key officials in the technical, marketing and financial departments. Further, feedback is also taken from customers as well as bankers. Based on the accumulatd data and interactions, the scores are assigned to the ESCO.
Grading Scores
| Grading |
Score |
|---|
| Grade 1 |
85 and higher |
| Grade 2 |
70-84 |
| Grade 3 |
55-69 |
| Grade 4 |
40-54 |
| Grade 5 |
0-39 |
Grading Scales
The definition 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 energy saving projects.
|
| Grade 2 |
High ability to carry out energy efficiency audits and implement energy saving projects.
|
| Grade 3 |
Good ability to carry out energy efficiency audits and implement energy saving projects.
|
| Grade 4 |
Below average ability to carry out energy efficiency audits and to implement energy saving projects.
|
| Grade 5 |
Poor ability to carry out energy efficiency audits and implement energy saving projects.
|
Grading Weightage
Weightage assigned to broad parameters for the Grading/Re-evaluation Exercise
Parameter
|
Weightage
|
|---|
Track Record and
Market Position
|
40 |
Organisational Risk
|
25
|
Financial Risk
|
35 |