Want to save money? Switch to electric buses

Report shows bus operators can save dollars making the switch

Sure, the upfront cost of an electric bus is higher than a diesel, however a new report has found in the long-run an electric bus will most likely make better economic sense.

The report, Electric Buses in Cities: Driving Towards Cleaner Air, was completed by Bloomberg New Energy Finance (BNEF) and presented at a Financing Sustainable Cities Initiative held this week in New York.

Related: Nikola has dig at Tesla over financial woes

Some of the keys point from the report include confirmation that, in the long term at least, choosing electric buses ends up being the cheaper option over diesel or even CNG.

A typical bus with a 250kWh battery charging slowly once per day at the depot and operating around 166km/day has a lower total cost of ownership than diesel ($1.05/km) or CNG ($1.19/km) buses at $0.99/km.

While the report says the biggest challenge for electric buses remains their high upfront cost compared to equivalent diesel buses.

An analysis of battery cost curves indicates that electric buses will reach unsubsidized upfront cost parity with diesel buses by around 2030. By then, the battery pack in the average electric bus should only account for around 8% of the total price – down from around 26% in 2016.

However, increasing demand for electric buses could bring battery prices down faster. In this case, electric buses would reach upfront cost parity with diesel buses by the mid-2020s.

You can check out the full report here.

Related: Big jump in electric bus use tipped for China

Stay up to date with all the latest Truck and Bus Industry News, including developments relating to electric heavy commercial vehicles, at heavyvehicles.com.au.




2 Comments on Want to save money? Switch to electric buses

  1. So many assumptions and biases in this EV advocacy piece. An analysis of battery cost curves indicates that electric buses will reach unsubsidized upfront cost parity with diesel buses by around 2030.

    Clean diesel technology buses deliver more clean air and more passenger movement per dollar invested/ Public transportation service, costs and reliability are key, and diesel is the gold standard.

    • Hi Allen, good to hear from you – we’ve also provided a lot of coverage about your opposing view points. Surely though you must admit that electric propulsion is ideal for city buses?

Leave a Reply

Your email address will not be published.


*