Characterising the energy efficiency grades of machining systems (MS) is an effective analytical methodology or management tool that helps to establish the high energy-efficient MS. However, the current MS energy efficiency approaches still lack scientific and practical formulation strategies to addresses this issue due to its multi-source and variable energy consumption characteristics. Focusing on this challenge, a new concept of inherent energy efficiency (IEE), which is formed in the design and formation phases of the MS, is proposed. Meanwhile, a novel energy efficiency grade evaluation (EEGE) approach based on IEE is also presented. The proposed EEGE approach not only can evaluate the MS energy efficiency grades, but also can reveal the MS high energy-efficient intervals. According to the analysis of IEE in MS, the EEGE approach is developed in three steps: (i) the establishment of IEE evaluating indicator system from both inherent energy utilisation (IEU) and inherent specific energy (ISE), (ii) the acquisition of the IEE, and (iii) the development of a quantitative method for the EEGE in MS. Finally, a case study of energy efficiency grade evaluation and analysis for an XK714D CNC milling machining centre is examined, illustrating the practicability of the proposed method.