Decentralized Renewable Energy Evaluation & Monitoring ... · Users may visit the DREEM website to start using the evaluation tool Users may start by signing up for the tool and then

© Intellecap 2016. All rights reserved

Decentralized Renewable Energy Evaluation & Monitoring - DREEM

User Manual

© Intellecap 2016. All rights reserved 2

Users may visit the DREEM website to start using the evaluation tool

➢Users may start by signing up for the tool and then log into their accounts for all future evaluations

Step 1: Signup and log into account www.dreemtool.com


Login on the platform will redirect user to personalized dashboard with

information on past evaluations

Upon logging into the account, users will be redirected to their Dashboard

Step 2: Redirect to User Dashboard

➢Financial institutions are able to undertake new/ repeat

evaluations of enterprises from the dashboard, while DRE

enterprise dashboards display scores of the last

evaluation conducted

➢The tool also allows users to download a blank input

form or the latest industry performance benchmarks

from the dashboard


Click on ‘Evaluate Enterprise’ to start entering data

By clicking on “Evaluate enterprise”, users are redirected to the input page to start entering information

of the DRE enterprise to be evaluated

Step 3: Start enterprise evaluation

Users are required to start by filling in basic enterprise information along with answering questions on

whether or not all regulatory compliances have been met

Step 4: Start enterprise evaluation


Users are also required to select weightage options for evaluation based

on their business or financing objectives

By clicking on “Evaluate enterprise”, users are redirected to the input page to start entering information

of DRE enterprise to be evaluated

Step 5: Select assessment option to assign parameter weights

➢Users may select type of assessment

from one of the many options that come

with pre-defined weightages

➢Alternatively, users may opt for “Manual

assessment” and customize all

parameter weights basis their evaluation

objectives

The underlying factors taken into consideration

while scoring of each of the parameters may be

viewed by clicking on the “i. symbol displayed

next to the parameters on this page

➢Save the filled input sheet and click on “Next” to go to Page

2 of the input form


Enter required business related information from the drop-down options

provided for each metric

Users will be further required to enter details about the enterprise’s business – such as Regions of

operations, offering type, management capacity, and customer information.

All inputs in the form of a selection from the options provided in the drop-down menu

Step 6: Input enterprise business details


Continue to fill in last 3-year’s performance data to complete the input form

Finally, the tool requires the financial, operational and impact numbers of the enterprise for the last 3

years

Unit of input required mentioned along with the metric

Step 7: Input financial, operational and impact numbers

The tool aggregates this information from all enterprises across product categories to create industry

performance benchmarks.

➢Option to input the projected values for each of these metrics along with the current performance numbers

➢Helps track enterprise performance vis-à-vis targeted performance as well as industry benchmarks for the

relevant category.


Submit the input form to view total risk score of the enterprise as well as

scores for each of the evaluated parameters

Upon submitting the details, user will be redirected to

the results page displaying parameter risk scores for

the enterprise

Step 8: Submit inputs to generate enterprise scores

Parameter scores accompanied with brief

commentary to be relevant for users in

decision making


Go to the ‘Comparison’ tab to view performance comparison charts for the

evaluated enterprise

Click on “Comparison” to generate actual performance

trend of enterprise vs. the projected performance as well

as relevant industry benchmark

Step 9: Generate comparison graphs

Financial institutions may compare performance of

any 2 evaluated enterprises by clicking on “Enterprise

comparison”


Enterprise Monitoring Handbook

November 2016


• Assess the ease of doing business and political stability in potential regions of operation

External Factors

• Assess the potential of renewable sources in different geographies and hence, success of the business operations

Off-grid sector

• Consider geography related factors like the availability of basic infrastructure as well as percentage split of rural-urban population

• Evaluate the intended timing of grid penetration and presence of competitive solutions in target geographies

Off-grid enterprises should ideally conduct an assessment of the external environment as well as the sector before starting business or expanding operations into a new market

• Most importantly, evaluate the target market to assess the need for off grid solutions along with customer’s ability to pay for the products/ services

Step 1: Assess external environment and overall sector to take business decision

Enterprise Handbook (1/11)

2


• Enterprises are suggested to track basic financial data from the start of operations

• This would ensure that over years data can be aggregated to derive more meaningful insights.

Step 2: Track basic financial and operational data to assess performance


Metrics Year 1 Year 2 Year 3

Revenue from operations

Variable Costs

Net Profit

No. of solar panels procured

Cost of wires purchased

No. of LED procured

Total power generated (MW)

No. of employees

No. of customers

Cost of goods sold

Short term debt

Long term debt

Accounts receivable

Accounts payable

Fixed assets

Total Assets

Cash Flow balance

Investments

Enterprises may start tracking only basic data in year 1, and include second level data from year 2 or 3, as depicted in the adjacent table

Enterprises may start tracking only basic data in year 1, and include second level data from year 2 or 3, as depicted in the adjacent table

Depute dedicated resources to track performance metrics within a year of beginning operations

Depute dedicated resources to track performance metrics within a year of beginning operations

Metrics to be tracked in

addition to year 1 metrics

3


• An early stage enterprise may allocate existing or dedicated field staffs to track direct impact numbers every 6 months. Secondary level impact metrics can be tracked with time as well.

Metrics to be tracked Year 1 Year 2

Enterprise-level

Number of mini grids set up

Number of products sold/ installed by enterprise

Total number of villages reached

Total no. of households connected

No. of people provided direct employment

Total number of beneficiaries

Village-level

Number hours of power supply

Expenditure on fuel before energy access

Expenditure on fuel after energy access

Average monthly electricity bill

Step 3: Assign resources to track direct impact created


When reporting impact data, enterprises may track first level impact during initial years of operation, and gradually collect second and third level impact as well.

First level impact metrics• Number of households/ beneficiaries• Total number of villages connected• Number of people provided direct employment• Number of hours of power supply

Second level impact• Average monthly savings per household• Indirect livelihoods supported• GHG emissions reduction• Reduction in indoor pollution• Increased study time for children

Third level impact• Improvement in health• Household safety• Increased awareness/ connectivity in communities

4


Once the enterprise has stabilized business operations, enterprises may depute a dedicated resource for impact assessment as the Impact Officer

• The Impact officer may be responsible for gathering financial data from the finance team and impact numbers from the field team

• The Impact officer may be responsible for gathering financial data from the finance team and impact numbers from the field team

• The best time to depute a dedicated resource for impact monitoring is when an enterprise is transitioning from an early stage* into the growth phase#

• The best time to depute a dedicated resource for impact monitoring is when an enterprise is transitioning from an early stage* into the growth phase#

Step 4: If feasible, depute a dedicated resource as Impact Officer


# A growth stage enterprise is one which has completed around 3-5 years of operations, has achieved sustainability, has a strong customer and distribution network along with good organizational

capacity and market linkages

Note:

* An early stage enterprise is one which has put its business plan into action after pilots, is still building customer base and supply chain, and has completed 1-3 years of operations

5


The Impact officer/ allocated personnel may develop data collection systems for the field staff to collect required impact data from the customers and suppliers. This will lead to uniformity in type of data collected across the enterprise

Standardized reporting formats may also be developed to submit impact numbers and for the finance and operations team submit performance figures

Find attached a questionnaire for field data

collection

Find attached a questionnaire for field data

collection

Refer to the attached format

for gathering enterprise level

numbers

Refer to the attached format

for gathering enterprise level

numbers

Step 5: Design impact data collection process and formats for the field teams


Questionnaires comprising of social and environmental impact metrics to be

provided by the head office to the field team to collect data during field visits on a

periodic basis.

Questionnaires comprising of social and environmental impact metrics to be

provided by the head office to the field team to collect data during field visits on a

periodic basis.

Once the data from field team is obtained, the Impact officer may ask the operations and finance teams to submit enterprise figures on key metrics and parameters

Once the data from field team is obtained, the Impact officer may ask the operations and finance teams to submit enterprise figures on key metrics and parameters

6

Field questionnaire

Head Office questionnaire

http://dreemtool.com/images/field_questionnaire.docx

http://dreemtool.com/images/head_office_questionnaire.docx


The Impact officer may put in place reporting formats to be followed by all field staff and employees to collate data and submit on a quarterly basis.

The reporting format attached guides the enterprises on how to collect data on a single format at every review period.

The reporting format attached guides the enterprises on how to collect data on a single format at every review period.

The format also lists enterprise documents where the required information should be gathered from

For example, revenue or profit can be found in audited financial statements, and operating details on individual projects can be tracked from the Detailed project reports

The format also lists enterprise documents where the required information should be gathered from

For example, revenue or profit can be found in audited financial statements, and operating details on individual projects can be tracked from the Detailed project reports

Step 6: Aggregate data in a standardized format to facilitate easy assessment


7

Microsoft Excel Worksheet

http://dreemtool.com/images/reporting_format.xlsx


The field visits to be conducted on a periodic basis:

Field staff to visit the customer locations every 2 months

One visit every 6 months by members of the operations team to check report and validate figures on

operating efficiency

Field visit to be scheduled by the impact officer every year to validate the data points received

Field staff to visit the customer locations every 2 months

One visit every 6 months by members of the operations team to check report and validate figures on

operating efficiency

Field visit to be scheduled by the impact officer every year to validate the data points received

Keeping track of enterprise performance will assist in easy identification of inefficiencies

Makes it easier to re-engineer operating procedures by learning from past operating processes and

subsequent performance

Having operating and financial figures handy will help the enterprise in accessing finance when required

Keeping track of enterprise performance will assist in easy identification of inefficiencies

Makes it easier to re-engineer operating procedures by learning from past operating processes and

subsequent performance

Having operating and financial figures handy will help the enterprise in accessing finance when required

The Impact officer may conduct training sessions with all employees on the importance of monitoring performance over time

Step 7: Plan field visits on regular intervals

Step 8: Train and sensitize staff on significance of M&E for the enterprise


8


• Consolidated performance and impact data may be analyzed by using the M&E tool• Timelines for M&E may be outlined by the Impact officer

Individual factors can be reported at different intervals:

Financial metrics submitted by the finance team on a quarterly basis

Operations data compared every quarter

Impact data may be collected on every field visit and an impact report created annually

Internal process reviews to be conducted annually (as a part of the stakeholder reviews)

Individual factors can be reported at different intervals:

Financial metrics submitted by the finance team on a quarterly basis

Operations data compared every quarter

Impact data may be collected on every field visit and an impact report created annually

Internal process reviews to be conducted annually (as a part of the stakeholder reviews)

Step 9: Plan schedule and evaluate performance on a periodic basis


9


The Impact officer /responsible personnel may develop an annual monitoring plan with well-defined timelines to organize the M&E effort

Step 10: Develop annual work plan for monitoring


Q1 Q2 Q3 Q4

1) Allocate responsibility to people

1) Track financial data

1) Analyze first level impact created

1) Track second level impact metrics during field visits

1) Report financial and operational performance in Annual report

2) Finalize monitoring formats

2) Track operational metrics

2) Track financial metrics and report financial performance

2) Conduct analysis of financial performance

2) Analyze performance by using M&E tool

3) Train field staf

3) Start tracking first level impact metrics

3) Report operational performance

3) Analyze operational performance

3) Publish Impact report as part of Annual report

4) Conduct financial analysis

Day 0

10


The Impact officer/ responsible personnel may conduct annual reviews with all the stakeholders of the business

• Review with investors and lenders to evaluate company performance and realign

processes to achieve goals

• Review with investors and lenders to evaluate company performance and realign

processes to achieve goals

• Review with employees to know operational and other issues being faced and rectify

processes

• Review with employees to know operational and other issues being faced and rectify

processes

• Review with customers to validate product performance and future expectations in product

design

• Review with customers to validate product performance and future expectations in product

design

• Review with suppliers or vendors to assess their own financial reputation in the market as

well as market expectations

• Review with suppliers or vendors to assess their own financial reputation in the market as

well as market expectations

Step 11: Conduct annual stakeholder reviews


11


Enterprises may choose to hire a third party evaluation agency for a professional impact assessment and impact audit to be conducted

A third party assessment usually lends more reliability to the reported figures for external financiers

Step 12: If required, hire a third party impact evaluation agency


Enterprises can choose to publish separate impact reports annually to highlight performance and impact on ground.

Early stage enterprises may choose to include an impact section in their annual reports to provide details on social and environmental impact created along with the company’s operational and financial performance

Step 13: Publish impact results as part of the annual reporting exercise

12


Track basic financials and operational details from Day 1 of business operationsTrack basic financials and operational details from Day 1 of business operations

Plan to monitor direct impact metrics by allocating additional responsibility to existing field staffPlan to monitor direct impact metrics by allocating additional responsibility to existing field staff

Plan field visits and Collect data on a regular basisPlan field visits and Collect data on a regular basis

Define standardized data collection surveys to collect data from fieldDefine standardized data collection surveys to collect data from field

Develop reporting formats to collect all data in one format across the organizationDevelop reporting formats to collect all data in one format across the organization

Evaluate performance annually from the data collatedEvaluate performance annually from the data collated

Develop internal annual report for yearly performance that can be used when approaching financial institutionsDevelop internal annual report for yearly performance that can be used when approaching financial institutions

1.

6.

5.

4.

3.

2.

7.

Train field staff in monitoring impact during field visitsTrain field staff in monitoring impact during field visits

8.

Basic M&E steps for early stage enterprises

13


Thank You

Documents

Decentralized Renewable Energy Evaluation & Monitoring ... · Users may visit the DREEM website to start using the evaluation tool Users may start by signing up for the tool and then