CARE Advisory Research and Training Limited (CART) proposes to offer ESCO Grading service to its clients. In the past a similar product named as ESCO grading was offered by our parent company (CARE Ratings Ltd.).

ESCO (Energy Service Company) is an organization which engages in a performance based contract with a client firm to implement measures which reduce energy consumption and costs in a technically and financially viable manner. The ESCOs specializes in energy audits and implement energy efficiency practices in a particular organization.

ESCO grading methodology has been developed in line with the guidelines of Bureau of Energy Efficiency (BEE). CART’s ESCO Grading will reflect the grade of ability to conduct energy audits and implement energy saving projects. It is a one-time entity specific Grading.

Proposed ESCO Grading Symbols & Definitions

Grading Definition           Score
BEE Grade 1 Very high ability to conduct energy audits and implement energy saving projects 85 AND ABOVE
BEE Grade 2 High ability to conduct energy audits and implement energy saving projects 70-84
BEE Grade 3 Good ability to conduct energy audits and implement energy saving projects 55-69
BEE Grade 4 Average ability to conduct energy audits and implement energy saving projects 40—54
BEE Grade 5 Below average ability to conduct energy audits and implement energy saving projects LESS THAN 40

Validity:

ESCO Grading awarded by CART will be valid for one year from the date of the grading, provided no significant changes/events occur during this period that could materially affect the performance and or financial strength of the organization. The entity may approach CARE Advisory for review on happening of such event and CARE Advisory may review the grading for a pre-determined fee.

Methodology:

ESCO grading methodology is developed after deliberations with BEE. The methodology is periodically reviewed and approved by BEE.

ESCO grading methodology involves assessment of Business Risk (Track record and Market position), Organizational setup and financial capability of the organization. ESCOs are graded on a 5-point grading scale. The assessments of the eligible ESCOs on each of the parameters are a holistic one, designed to evaluate the organizational capability for handling the ESCO assignment.

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