E-BUS

SOLUTION BOOKLET
Smart Cities Marketplace 2023
The Smart Cities Marketplace is managed by the European Commission Directorate-General for Energy

ENERGY
 E-Bus Solution Booklet Januar y 2023 2

Publisher Smart Cities Marketplace © European Union, 2023 What and why 5
Completed in: January 2023 The need for e-buses
Author: Smart Cities Marketplace managed by E-buses city context 7
the European Commission Directorate-General for energy E-bus market
smart-cities-marketplace.ec.europa.eu | European Commission |
Societal and user aspects 9
DG ENER
Stakeholder Benefits
2023 version Rafael Afonso and Lluis Puerto (EIT Urban Mobility)
is written by: Leen Peeters (Th!nk E) Lessons learnt
2019 version Koldo Urrutia Azcona (TECNALIA) Technical specifications 13
is written by: Overview of technologies
Proofreading: Gabi Kaiser, Siora Keller (Steinbeis 2i) KPIs
Lessons learnt
Graphic Agata Smok (Th!nk E) for the Smart Cities Marketplace, Business models and finance 20
design: European Commission DG ENER Cost parameters of e-buses
Possible funding models
Cover image Electric bus charging © Siemens Mobility
KPIs
Typeface: EC Square Sans Pro Financing schemes for e-buses
Disclaimer: © European Union, 2021 Lessons learnt
The Commission’s reuse policy is implemented by Commission Governance and regulation 27
Decision 2011/833/EU of 12 December 2011 on the reuse of Challenges faced by governments
Commission
documents (OJ L 330, 14.12.2011, p. 39). Policy recommendations
Risk management
Unless otherwise noted, the reuse of this document is authorised
under the Creative Commons Attribution 4.0 International (CC BY 4.0) Lessons learnt
licence. This means that reuse is allowed, provided appropriate credit General lessons learnt 32
is given and any changes are indicated.
Useful documents and relevant examples 35
For any use or reproduction of elements that are not owned by the E-bus policy and information
EU, permission may need to be sought directly from the respective
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This document has been prepared for the European Commission
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 E-Bus Solution Booklet Januar y 2023 4

WHAT & WHY

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 What and why  Th e n e e d f o r e - b u s e s 5

WHAT AND WHY

The need for e-buses
Transport emissions are on the rise – between Additionally, noise pollution from vehicles also car-
1990 and 2020, global CO2-emissions from trans- ries negative impacts; noise pollution is associat-
port grew by 58%.*, ** ed with poorer health outcomes and lower overall
Currently, transport is responsible for 25% of the well-being and quality of life. 18 million people in Transport
responsible for
EU’s greenhouse gas emissions, and 72% of these the EU are suffering from long-term annoyance
emissions come from road transport.*** due to transport noise.**** 25%
of the EU’s
Traffic congestion remains an issue in urban are- European cities recognise the issue road transport greenhouse gas
emissions
as, as pollutants such as PM2.5, PM10, and nitric presents in urban areas and are seeking to address
oxides that are emitted by road transport have this. The sales of e-buses in Europe increased six-
severe impacts on the environment and human fold from 2016 to 2021.
health. Alongside this, initiatives such as the Clean Bus
Deployment Initiative***** are helping to promote
the sale of clean buses and move towards a de- 72%
carbonised transport system. Urban solutions such of these
as the e-bus reduce emissions, improve quality of emissions come
from road
life and strengthen the economy by reducing sus- transport

ceptibility to fossil fuel price spikes.

* Crippa, M., Guizzardi, D., Solazzo, E., Muntean, M., Schaaf, E.,
Monforti-Ferrario, F., Banja, M., Olivier, J.G.J., Grassi, G., Rossi,
S., Vignati, E.,GHG emissions of all world countries - 2021
Report, EUR 30831 EN, Publications Office of the Europe-
an Union, Luxembourg, 2021, ISBN 978-92-76-41547-3,
doi:10.2760/173513, JRC126363
** Transport includes road transport, non-road transport,
domestic aviation and inland waterways for each country.
International shipping and aviation also belong to this sector. **** European Environment Agency (2022): Outlook to 2030
*** European Environment Agency (2021): Decarbonising — Can the number of people affected by transport noise be
road transport — the role of vehicles, fuels and transport cut by 30%?,
demand ***** European Clean Bus Deployment Initiative
 E-Bus Solution Booklet Januar y 2023 6

CITY CONTEXT

© Semitan
 E-buses city context  E-bus market 7

E-BUSES CITY CONTEXT

E-bus market Case studies
E-buses currently represent 6.1% of the sales of Project name, E-bus
new buses in Europe. city, country solution
The decarbonisation of public transport systems
will be crucial as European countries and cities 13 electric buses were introduced into the public mobility system,
SmartEnCity
move towards a net zero economy, and as such, transforming the circular bus line around the city with the highest number of
Vitoria-Gasteiz, Spain
the e-bus market will continue to expand. passengers into a clean electric bus line.

Cities in Europe that have different topographies,

demographics, climates, electricity grids, and ur-
The e-bus fleet of 105 vehicles uses 124 charging points spread over
ban planning styles will face different challenges mySMARTlife,
three locations. E-buses are charged overnight to help address the
in the implementation of e-buses. Hamburg, Germany challenge of storing renewable energy.
Projects must be tailored to the needs of individual
cities. E-bus charging takes place at fast charging stations.* This helps
avoid peaks in electricity consumption and also avoids impacting the
mySMARTLife, operation of the line that transports up to 55,000 passengers per day
Nantes, France as e-buses are charged en route. The implementation of the 22 e-bus
lines in Nantes has reduced energy consumption by 30% compared to
fossil-fuelled buses.

E-buses This project procured three electric buses and three hybrid buses
represent REPLICATE,
for a bus route travelling between a district and the city centre. Two
San Sebastian, Spain
6.1% charging stations were also installed.
of the sales of
new buses in
Europe

* Fast charging stations charge the e-bus while passengers board and exit the bus.
 E-Bus Solution Booklet Januar y 2023 8

SOCIETAL AND USER

ASPECTS

© Serhat Beyazkayaon Unsplash

 Societal and user aspects  Stakeholder Benefits 9

SOCIETAL AND USER

ASPECTS
Stakeholder Benefits
For citizens, the
The implementation of e-buses benefits a range of benefits include:
stakeholders; citizens, public transport authorities,
industry, bus drivers and users of the bus services.
☑ Less noise pollution;

☑ Better air quality;

☑ Less greenhouse
gas emissions. For public transport
authorities, the benefits are:

☑ Achieve low emission targets;

I like the reduced noise,
allowing me to enjoy my
☑ Improve air quality;
walks more.
☑ Reduce societal cost on public
health due to better air quality;
This bus line received positive
feedback during its journey. ☑ Improve public perception of the
People were relaxed and
enjoying their trip.
city;

☑ Reduce fuel costs by

transitioning to renewable
energy and providing flexibility
in energy demand.
I love the new electric buses The new electric bus
a lot and would like to see has such soft and nice
more in the future. benches. Good for my
back pain! Also so quiet!
Almost too quiet.
 Societal and user aspects  Stakeholder Benefits 10

Extreme cold and hot weather decrease the efficiency

of e-buses: a decrease in temperature from an am-
bient temperature of 10 - 16°C down to -6 - 0°C will
decrease fuel efficiency by 32%*.

For industries they:

Implementation challenges
Despite the benefits of e-buses, challenges arise with
☑ Stimulate the
their implementation.
domestic e-bus
industry; → Getting permits for constructing the charging
☑ Advance to a circular infrastructure can be time-consuming,
economy by opening particularly in regions with many historical sites,
For bus drivers and users,
opportunities such as → Identifying locations for charging infrastructures,
the benefits are:
second-life batteries; considering the impact on electricity grids, other
☑ Improve the road users, and overall urban planning. Local
☑ Less vibration;
corporate public topography and climate can impact e-bus driving
image. ☑ Comfortable and easy to ranges, especially in hilly and cold environments.**
drive;

☑ Less noise;

☑ Improved passenger
comfort and better * Henning, M., Thomas, A., & Smyth, A. (2019). An Analysis of
customer experience. the Association between Changes in Ambient Temperature, Fuel
Economy, and Vehicle Range for Battery Electric and Fuel Cell
Electric Buses. Urban Publications. 0 1 2 3 1630.
** Henning, M., Thomas, A., & Smyth, A. (2019). An Analysis of
the Association between Changes in Ambient Temperature, Fuel
Economy, and Vehicle Range for Battery Electric and Fuel Cell
Electric Buses. Urban Publications. 0 1 2 3 1630
 Societal and user aspects  Lessons learnt 11

Lessons learnt
Barriers Suggested actions
Range anxiety/fear Bus drivers might be psychologically concerned on e-bus and Provide information and training (eco-driving,
battery reliability, mainly due to the concerns on the driving energy monitoring training). Fast charging sta-
range (range anxiety). They also need to adapt their driving tions (en route, when passengers are boarding or
habits. exiting the bus) could also help negate this.

Maintenance While maintenance needs are substantially lower with e-buses Offer training to the workforce around electrical
compared to conventional buses, practical experience in the equipment, high-voltage technology, and main-
maintenance and repair of e-buses is limited. tenance procedures. The available experience
and existing expertise from trams and metros
can be beneficial.
Safety on road Buses are running silently, therefore, some safety measures Increase awareness via polite warning bells for
might need to be taken in order to avoid that other drivers or pedestrians, similar to trams, colourful designs
pedestrians don’t notice the buses of the buses.

Battery safety Battery safety remains an issue in case of fire and unexpected Inform different stakeholders (drivers, mainte-
accidents. nance staff, firefighting department) in advance
and avoid misconceptions related to battery
safety.

Change route and Public transportation authorities and operators might refuse Be open to adapting routes or timetables to
time table to alter the bus route and timetable for electric buses, which better match the e-bus use profile. Analyse and
might further lead to changes on all the other transportation optimise the route and timetable, which will also
timetables. bring economic savings.
 E-Bus Solution Booklet Januar y 2023 12

TECHNICAL
SPECIFICATIONS

© Smart Cities Marketplace

 Te c h n i c a l s p e c i f i c a t i o n s  Over view of technologies 13

TECHNICAL
SPECIFICATIONS
Overview of technologies
Different types of electric buses Battery Electric Vehicles (BEV)
E-buses are vehicles with zero in-use emis- A battery electric bus is an all-electric vehicle with an electric propulsion system
sions propelled by an electric powertrain and powered by rechargeable onboard battery packs, using an electric motor and motor
powered by a storage device (e.g. batteries, controllers for propulsion instead of an internal combustion engine.
fuel cell). Current technologies available on
the market are: Plug-in Hybrid Vehicles (PHEV)
Similarly to BEVs, plug-in hybrid buses achieve motion through an electric motor
using rechargeable batteries, with the difference of having an additional internal
combustion engine powered by conventional fuel (e.g., diesel). The batteries are re-
chargeable by plugging into the electrical grid.
Trolleybus with batteries
These are bus-type vehicles propelled by an electric motor, drawing power from ei-
ther overhead wires via connecting poles called trolleys, from ground contact, or
onboard rechargeable batteries. This enables the vehicles to run electrically while
Battery Electric Vehicles Plug-in Hybrid Vehicles independent of the charging infrastructure for part of their route while maintaining
(BEV) (PHEV) full operational capability.
Fuel cell bus
Fuel cell hydrogen buses use electric energy produced through an electrochemical
reaction both for the powertrain and for support battery charging. Energy stored in
the batteries adds additional power in demanding situations like rapid acceleration
or slopes. Only water and heat are emitted because of the use of hydrogen as a fuel.
However, using hydrogen as a fuel for buses is neither efficient nor sustainable.
Trolleybus with batteries Fuel cell bus
This solution guide is mainly focused on the full battery electric bus.
 Te c h n i c a l s p e c i f i c a t i o n s  Over view of technologies 14
Charging options and infrastructures* **
The most typical charging options for fully electric Recent technological and business developments enable road charging through
battery buses are opportunity and destination retrofitting onboard charging elements and implementing a smart power road
charging (typically called overnight charging). strip. The ongoing charging mechanism makes this full battery a trolleybus solu-
Destination charging occurs when the bus finishes tion as the electric road charges the onboard rechargeable batteries, extending
its shift at the depot and is linked to longer charg- the bus’ driving rage. Even though this technology is not currently widely used,
ing times, where smart infrastructure can reduce a broader implementation is expected.
costs due to dynamic tariffs, self-consumption, or
peak power reduction.
Alternatively, opportunity charging takes place at
bus stops along the bus route, with the possibility
of being combined with destination charging.
Both charging options can be combined for a spe-
cific bus, allowing the bus to leave the depot ful-
ly charged and charge small amounts during its
route to maximise the length of its route. Opportunity charging (often Destination charging Road charging (emerging)
There are two main types of infrastructure for combined with destination
charging electric buses: pantograph overhead charging)
charging and plug-in systems. Small battery size; Large battery size; Small battery size;
While the plug-in is mostly used for destination Short free range: <100 km; Medium free range: up to 550 Short free range: <100 km;
Limited route operational km; Limited route to operational
charging, pantograph charging is used for both
opportunity and destination charging. flexibility; Higher route operational flexibility;
flexibility;
Recharging needed multiple No stopping needed to charge;
times a day, and at the end of Recharging at the end of each
Charging infrastructure en-
each day (overnight) day (overnight);
route;
Short charging time: seconds to Long charging time: usually
Technology not widely used
minutes, with longer charging measured in hours (2 up to 10
hours); Expensive.
times overnight;
Charging infrastructure en- Charging infrastructure only at
route, and at the terminal; the bus terminal;
* Transport& Environment, electric buses arrive on time Expensive. Cheaper.
** CIVITAS, Smart choices for cities - Clean buses for your city
 Te c h n i c a l s p e c i f i c a t i o n s  Over view of technologies 15
These charging technologies have pros and cons. Much depends on
the routes that the bus is going to serve:
→ Opportunity charging aims to minimise the weight of the onboard The charging time largely depends on the power of the
battery pack by recharging the e-bus along the route at passenger charging station and battery technology. High-power
stopping points. It uses roof-mounted pantograph equipment to charging infrastructure and en-route charging options can
connect the bus and the overhead power supply systems, and lower the number of required electric buses.
charging begins after the bus has arrived at the charging site and
the pantograph is extended and made contact with the charger. Cities and municipalities should choose the most suitable
→ Opportunity charging only requires a short period (less than 1 min). charging technologies by taking into account their specif-
→ Opportunity charging is becoming increasingly popular for new ic context, including type and a number of electric buses,
e-bus fleets in European countries. However, issues such as visual battery capacity, electricity grids, bus route (length, topog-
intrusion, urban landscape impact, and local power connection raphy), passenger capacity, city planning and any other
restrictions of the charging points and their complex operational service requirements.
planning must be considered.
→ Destination charging needs the electric bus to carry a larger battery
(typically above 600 kWh for ranges of 500 km and more). This
method requires lower power at the depot level (50-150 kW).
Currently, destination charging with plug-in systems at the depot is
significantly cheaper and more popular compared to the opportunity
charging with a pantograph.
→ Combining destination and opportunity charging allows for limiting
the charging stations along the route while extending the range of
the bus.

© Siemens Mobility
 Te c h n i c a l s p e c i f i c a t i o n s  KPIs 16

KPIs
Technology maturity Emissions KPIs:
Electric buses are proven technologies and mar- → GHG, NOx, and PM10 emissions saved in g per km
ket-ready. From a technical point of view, there → Annual GHG, NOx, and PM10 emissions saved in tons
are little to no barriers to implementing e-buses (per year)
on large scale.
Energy Other solution-specific KPIs:
Charging e-buses with electricity has a ma- → Noise reduction
jor impact on primary energy consumption and → Driving range in km
CO2-emissions. → Other pollutants emission saved in g pollutant per km
→ Average electrical energy consumption in kWh → Other pollutants saved annually in kg or ton pollutant
per km per year
→ Annual electricity consumption in MWh → Maximum amount of passengers
→ Peak power when charging in kW → Re-use of batteries in other applications, so-called
→ Presence of regenerative braking technology ‘second-life’ (e.g., stationary energy storage)

Innovative Saving tons of CO2 Shortening Increasing driving Decreasing

technology emissions charging time range noise
 Te c h n i c a l s p e c i f i c a t i o n s  KPIs 17

E-bus (full battery) –

Destination charging
E-bus (full battery) – (often combined with
Type Diesel bus CNG bus Opportunity charging opportunity charging)

Range [km] 600-900 350 – 450 <200 (currently up to) 550

Refilling/charging time 5-10 min 5-10 min Seconds to a few minutes Several hours

1000 1000 1000 800-850

Emission - CO2eq [g/km] 0
(EURO V) (EURO VI) (CNG 2013) (CNG 2020)

3.51 1.1 1.4 - 4.5 0.88

Emission - NOx [g/km] 0
(EURO V) (EURO VI) (CNG 2013) (CNG 2020)

0.1 0.03 0.005 - 0.03 0.024

Emission - PM10 [g/km]* 0
(EURO V) (EURO VI) (CNG 2013) (CNG 2020)

Energy consumption
4.13 5.21 1.8 1.91
2012 [kWh/km]

Energy consumption
3.89 5 1.15 1.68
2030 [kWh/km]

Noise [dB] 80 78 60

* Engine related emissions

Numbers extracted from the Clean Bus Report, Sustainable-bus.com, and CIVITAS report,
The main difference between a conventional diesel bus
Smart choices for cities - Clean buses for your city and a CNG bus is the local pollutants (NOx and PM10).
 Te c h n i c a l s p e c i f i c a t i o n s  Lessons learnt 18

Lessons learnt
Barriers Suggested actions
Reliability and Battery degradation and reliability remain a primary issue, Make contractual arrangements (maintenance, extended
lifetime of battery and battery life is influenced by various factors: battery type, warranty) to cover risks associated with battery life expectancy.
pack driving profile, the climatological situation, charging strategy, A regular battery warranty is usually five to seven years and can
and operational battery use (depth of discharge, number of be optionally extended with an extra warranty fee.
battery cycles, average state of charge).
Implement second-life battery use strategies or ensure they are
part of the purchasing or leasing contract.
Total weight The total maximum weight describes a vehicle in operation Compare various e-bus offers as continuous R&D developments
limitation and is a parameter used to specify weight limitations and lead to the greater energy density of batteries.
restrictions for its use. This might lead to a loss of passenger Evaluate the use of trolleybus systems to increase passenger
carrying capacity and capacity to accommodate unexpected capacity and decrease battery size, though considering the cost
fluctuations in route demand. This also influences the of infrastructure related to it.
acceleration, driving range, and useful load of the electric bus.
Energy consumption Heating, cooling and ventilation could significantly influence Opt for efficient heating, cooling, and ventilation technologies.
due to heating, the energy consumption and driving range of the electric Include the efficiencies of such comfort-providing technologies as
cooling, and buses. part of the selection criteria during the tendering phase.
ventilation
Interoperability Charging infrastructure and e-buses from different Include compliance with standards (among others ISO 15118,
manufacturers might not be compatible with each other. prEN50696, and ISO 61851) in the tendering and selection.
Impact on grids Electric buses (especially with opportunity charging) could Involve grid operators at an early phase, and plan the charging
have a huge impact on electricity grids. Current electricity systems with various charging impact analysis scenarios on the
network infrastructures might be under-dimensioned. It might grids.
be difficult for suburban areas to get connections to the Implement solar parks on bus depots to decrease the impact on
electric grids. the local grid.
Use smart charging technologies.
Process Lack of bus operational data (e.g., energy consumption, Implement charging/operational management software to
management battery status) and back office functioning might lead to monitor e-bus data, CO2-emissions, and charging costs.
a lack of clarity during operation. Ensure this information is communicated to the relevant
stakeholders, to optimise the operational process.
 E-Bus Solution Booklet Januar y 2023 19

BUSINESS MODELS
AND FINANCE

© Rawpixel on Unsplash
 Business models and finance  Cost parameters of e-buses 20

BUSINESS MODELS AND

FINANCE
Cost parameters of e-buses
E-buses have much lower operational costs than
their diesel equivalents; based on research cover-
ing multiple projects with fleets of over 100 e-bus-
es, savings in the operational costs were over 50%,
while savings in maintenance vary more with val-
ues ranging from non-savings to nearly 40%.
Although operational costs are lower, high upfront
costs* are a characteristic of e-buses which can
make them unattractive.
Currently, investment costs for both the e-buses
and the infrastructure are nearly double the in-
vestment for traditional buses**.
The different costs associated with e-buses are:
→ Acquisition of e-bus;
→ Acquisition of battery;***
→ Charging infrastructure; © Phuoc Anh Dang on Unsplash
→ Operational costs (energy consumption);
→ Maintenance costs of bus;
→ Retraining of bus drivers. The capital cost is mainly defined by the battery cost. However, it is expected that
through research and development, the battery prices for e-buses will decrease by
9% to 12% annually on average from 2016 - 2030 depending on the level of de-
* Much of the upfront cost of E-buses is battery costs.
** Potkány et al (2018), Comparison of the Lifecycle Cost
mand in the European market.****
Structure of Electric and Diesel Buses.
*** E-bus batteries currently have an estimated battery life of
5-8 years, compared to a bus lifetime which can be up to 20 **** E-bus are much heavier than diesel or hybrid equivalents, and the weight is distributed differently,
years. This means batteries must be replaced, and as a result, thus, some training is required to help bus drivers get used to e-buses. Training is also required to teach
batteries can constitute up to 50% of lifetime costs drivers to drive efficiently
 Business models and finance  Cost parameters of e-buses 21

Local authorities could estimate the cost of imple- Reductions in the Total Cost of Ownership (TCO)
mentation with decision support tools designed to due to reduced asset prices (mainly the battery
assist cities and bus agencies in the deployment and the charging infrastructure) and the exploita-
of the most suitable electric bus fleet technology tion of the buses’ energy flexibility will encourage
based on data from pilot tests. European cities to adopt e-buses following the ex-
Pilot projects show that an effective cost estima- ample of leading cities such as Bergen (Norway),
tion is to be tailored to the local context and in- Eindhoven (Netherlands), and Groningen (Nether-
cludes assessment and changes to routes, evalu- lands).
ation of energy cost reductions through renewable
energy and flexibility, and costs related to potential
adaptations to the distribution grid.
When taking into account the broader picture by
quantifying socioeconomic and environmental
costs and benefits to society in the analysis, in-
cluding public health benefits (noise, air pollution)
and environmental impacts (climate change) that
contribute to achieving energy and emission tar-
gets, the cost to society of e-buses is much lower
than the TCO to the owner.
These benefits are part of the reason e-buses have
been pursued even when, from a direct cost per-
spective, they may appear more expensive than
diesel equivalents.

© Semitan
 Te c h n i c a l s p e c i f i c a t i o n s  Possible funding models 22

Possible funding models

1. Pay upfront for all: the most common option 7. Rental: a short-term solution for bus
currently, which can be funded in a number authorities or bus operators looking to “test
of ways, including grants, concessional loans, drive” before making a long-term purchasing
and subsidies. decision.
2. Joint purchasing/procurement: costs are 8. Other: the e-bus ownership stays with the
shared by more than one party to increase the manufacturer, while in some pilot projects
volume secured and lower the upfront costs. cities could use the bus for free, in order
3. Capital lease: a (generally) low-cost financing to help the manufacturer test the bus
tool for local authorities, the local authority performance in real-world conditions.
can lease the bus with the option to purchase
the vehicle at the end of the term. There are also varying business models for the
purchase of electricity for e-bus fleets.
4. Operational lease: pay for the use of a bus
over time, with the option to pay to own the Sale of Electricity
bus. Direct Indirect
5. Battery supply contract: owning the bus but
reducing upfront costs by leasing the battery,
The local authority purchases The local authority purchases
which can be paid for per kWh of use or over
electricity from the grid, and uses electricity from the grid, public
a fixed period. Public
it for its fleet/ public bus fleets and fleet pays the local authority for
6. The second life of EV batteries: e-bus does not charge for electricity. charging of e-bus.
Ownership
batteries can be reused for stationary energy- of e-bus
storage services that are suitable for their fleet
reduced capabilities after intensive use in the
e-bus industry, and following this second life The private e-bus fleet operator The local authority purchases
they can recycle for their valuable rare-earth pays for the electricity, local electricity from the grid and the
Private
materials. Utilising this can reduce e-bus authority only charges for the private e-bus fleet operator pays
occupation of a parking lot. the local authority.
lifecycle costs thanks to providing a resale
value to the batteries.
 Te c h n i c a l s p e c i f i c a t i o n s  KPIs 23

KPIs
Investment vs. total cost of ownership (TCO)
E-buses have lower operational costs which Some exemplary calculations have concluded that, electric
make them already cheaper than convention- buses could potentially offer better TCO than conventional
al diesel buses. However the high upfront cost buses, when taking into account the broader picture by
of e-bus is still one of the major obstacles quantifying socio-economic and environmental costs and
that makes e-buses less financially interest- benefits to society into the analysis, including public health Acquisition
ing and competitive comparing with the con- (noise, air pollution) and environmental impacts (climate cost of the bus
ventional buses. change). However, it should be noted that there is no
The most influential cost parameters of the generally accepted calculation method of account-
electric bus are: ing for these secondary benefits.
→ Acquisition cost of the bus; Return on investment (ROI)
→ Acquisition cost of battery pack; Acquisition cost of
In the Netherlands, there are business cases with battery pack
→ Charging infrastructure cost; a calculated payback time of less than 10 years
→ Operational cost - energy on large scale implementation in certain cities. In
consumption; the Flemish region of Belgium, according to a feasi-
→ Maintenance cost for bus; bility study on zero emission buses, without taking into
account flexibility matter, the business case of large scale
TCO depends on many different factors, such as Maintenance cost
electric buses could pay back between 10-15 years.* for bus
battery cost, fuel/electricity prices, driving dis- Revenue mainly comes from the saved operational cost of
tance, charging infrastructure, maintenance, the electric buses. In general, e-buses are relatively more
implementation scale and subsidies. It can vary profitable with a longer total driving distance and in the
largely according to the country or city specific cities/regions with lower electricity price and higher fossil
context and the factors that are taken into ac- fuel price. An optimised ratio between charging infrastruc-
count in the TCO calculation. Charging
ture and buses will also largely increase the profitability, infrastructure
while a detailed technical and economic analysis is a must.

* Results based on expert interview

 Te c h n i c a l s p e c i f i c a t i o n s  Financing schemes for e-buses 24

Financing schemes for e-buses

High upfront costs can make e-buses unattractive to local au- An example of both grants and loans being offered is in Poland
thorities. To counteract this, governments are offering financing – in June 2020, the Polish Ministry of Climate Change announced
schemes to encourage the procurement of e-buses. Currently, that in order to promote the purchase of electric buses it will offer
most cities use a form of a grant to cover the upfront cost of an two schemes for the financing of up to 95% of purchase costs of
electric bus. Grants usually come from the public sector and are e-buses.
given to public bus operators. The grants take one of two forms: According to the number of inhabitants and income per citizen,
→ Grants to cover upfront costs of electric buses, and the a city will get access to either a loan or a subsidy. The other num-
accompanying infrastructure; ber of inhabitants in the municipality and the income structure per
inhabitant will decide which scheme is eligible for each municipal-
→ Grants to cover operational costs, as many bus operators
ity. The scheme will focus on municipalities with poor infrastruc-
may feel uncertain about operating new technologies.
ture. It is estimated that the financing will allow the procurement
These grants can either take the form of cash, tax breaks, or sub- of up to 300 e-buses and 75 charging stations.
sidies for user fares. Also, green bonds (similar to a regular bond, Further reading: Polish Ministry of Climate launches e-bus support
except capital raised is used specifically to finance climate-re- schemes - electrive.com.
lated or environmental projects) have previously been used to
finance electric buses.
Grants and green bonds are common where bus operators are
public. However, private bus operators are likely to finance their
e-buses differently. In cases where private operators source the
e-buses themselves, concessional loans have been provided by
various bodies (e.g., banks and international funds) to finance
both the purchase and operation of e-buses *.

* Thorne, R., Hovi, I., Figenbaum, E., Pinchasik, D., Amundsen, A., Hagman, R.
(2021). Facilitating adoption of electric buses through policy: Learnings from
a trial in Norway. Energy Policy, Volume 155, 112310. Electric bus in Nantes, France. © mySMARTlife project
 Te c h n i c a l s p e c i f i c a t i o n s  Lessons learnt 25

Lessons learnt
Barriers Suggested actions
High up-front The cost of an e-bus and dedicated infrastructure is usually Funding and financing supportive schemes on purchasing
cost 1.5 - 2 times higher than the cost of a conventional bus. The electrical buses. Incentives for implementing e-buses could
cost of the battery is around half of the whole bus cost. be:
• Subsidies (local, national, EU)
• Fiscal incentives (lower taxes for electricity)
• Grants
• Green bonds
Automotive battery costs per kWh are reducing at a rate of
9 - 12% per year, which will also reduce upfront costs.
Risks of battery Battery lifetime is one of the major concerns for financiers De-risk by taking into account the extended warranty on
usage battery parts, and battery second life.
In the future, second-hand batteries might be used togeth-
er with PV for building energy storage or grid services.
Value Value depreciation and TCO models are based on the Increase bus lease contract length to bus lifetime to spread
depreciation and specific local context. depreciation over the whole lifetime of the bus.
TCO Increasing supply will have a secondary effect of reducing
the price of e-buses and other associated costs.
Charging Investment in charging infrastructure is rather costly, Adapt and leverage charging infrastructure for other
infrastructure together with possible associated costs of additional transport types to share costs, as mentioned in ELIPTIC
cost and infrastructure of electric grids. Policy Paper*: e-trucks, electric private coaches, e-cars,
installation etc. Involve grid operators in an early stage to incorporate
these costs.
Apply smart charging to benefit from dynamic prices and
participate in grid services.

* ELIPTIC. Policy Recommendations: electrification of public transport in cities.

 E-Bus Solution Booklet Januar y 2023 26

GOVERNANCE
AND REGULATION

© Semitan
 Governance and regulation  Challenges faced by governments 27

GOVERNANCE AND
REGULATION
Challenges faced by
governments
The European continent is now committed to fight- Due to the complexities e-buses present, all stake-
ing climate change in part by achieving a net zero holders must be clear on their roles. Policy papers
society no later than 2050. Moving towards net provide a good framework for local governments
zero means moving towards a society charac- to base their work on.
terised by the stability of prices and security of
energy. The decarbonisation of public transport will
be part of this process. Aside from national-level
goals for decarbonisation, cities must understand
the need to decarbonise and how this can be done.
Local authorities have the best knowledge of their
area and thus are well-placed to deliver best prac-
tices in respect of their e-bus projects.
There are a variety of stakeholders involved in
e-buses:
→ Public transportation authorities (PTA);
→ Public transportation operators (PTO);
→ Manufacturers (both bus and charging
infrastructure);
→ Electrical grid operators (DSO, TSO);
→ Service providers for maintenance and
operations;
→ Authorities are responsible for urban/city
planning.
Electric bus charging. © Getty images
 Governance and regulation  Policy recommendations 28

Policy recommendations

The technical and administrative An example of where the Eliptic strategy

procedure of the charging infra- has already been implemented in Barcelona.
structure planning can be complex The city of Barcelona has 1.6m inhabitants, is
due to the involvement of various known for its vibrant street life and tourism in-
stakeholders. dustry, and the city offers a wide range of bus
A clear high-level regulation framework and polit- and tram connections.
ical support are of utmost importance in pushing These are run by two organisations; TMB (local
e-bus solutions to a larger scale. transport operator), in charge of operative con-
The Eliptic policy* recommendations are a frame- nectivity and tendering tasks and CENIT (re-
work that brings together various stakeholders in search institute), coordinating and controlling
a city. all other tasks and operations.
Evaluating various approaches for electrifying pub- Together they have implemented two types
lic transport in cities across Europe, the framework of charging infrastructures, both centred
supports a multi-purpose charging infrastructure around charging e-buses utilising existing
for public transport that will be more cost-efficient metro infrastructure.
and therefore encourage procurement of electric The first model involves destination depot
public transport vehicles. charging while metro lines are not being used,
while the second model involves fast charg-
ing at opportunity charging points on the
line, with a short overnight charge to ensure
batteries start the day fully charged.

* ELIPTIC. Policy Recommendations: electrification of public

transport in cities. © Semitan
 Governance and regulation  Risk management 29

Risk management
One of the biggest risks concerning e-buses is
the uncertainty surrounding battery lifetime
and performance. Certain aforementioned
business models could potentially lower this
risk.
Several parties should work together to share the
risks and at the same time learn from the electric
bus implementation process. In addition, it is also
necessary to lower the risk in the tendering pro-
cess by carefully defining the service/operation
provider’s contract length and extensions, and
it is important to cover all possible scenarios (e.g.
increasing maintenance costs when buses age,
batteries aging faster than expected) in order to
create trust and clarity.

© Getty image © Smart Cities Marketplace

 Governance and regulation  Lessons learnt 30

Lessons learnt
Barriers Suggested actions
Lack of clear Cities and municipalities do not have a clear regulatory Set a clear policy/legal framework at both the local and nation-
framework framework or legislative powers to introduce al levels. Consider introducing emission reduction targets and
a framework for a clean public transportation system low-emission zones (with public consultation and far ahead
notice), and give a clear signal to potential investors.

Planning of the There are many uncertainties and complexities when Clarify the responsibilities for the electrification of public
charging infra- planning the charging infrastructure in the urban transport among different stakeholders at the political level
structure context. Many factors must be taken into account: (transportation, energy, city planning, etc.).
charging locations, charging times, battery capacity, and
charger availability.

Stakeholder Mobility (bus lines and timetables), energy (charging) Work together to share the risks and at the same time
responsibility and space (charging location) interact, and it can be learn from the collaboration process. A system approach is
complex to take into account all the different aspects in important: involve stakeholders at an early stage, and identify
the planning, and take time for proper implementation. the corresponding roles.

Charging ser- Charging service quality can suffer from an overly Use charging as a service model, especially when organising
vice complicated setup due to the involvement of too many opportunity charging. Set up a clear interface between charging
stakeholders and complex procedures. and operation, and service providers take care of charging,
while PTO should provide the necessary data.

Risk High upfront costs create a high level of risk for bus Consider the range of financing options available, such as;
operators. grants, green bonds and concessional loans.
 E-Bus Solution Booklet Januar y 2023 31

GENERAL
LESSONS LEARNED

© Smart Cities Marketplace

 General lessons learnt  Lessons learnt 32

GENERAL LESSONS
LEARNT
1. Cities should try and start with pilot projects, 4. A clear regional policy framework is required to im-
learn from existing deployments of e-buses plement e-buses in a region. A flexible yet system-
and their operation, identify issues, find solu- atic approach is vital when deciding on the e-bus
tions, and scale them. type (fully electric, hybrid), charging infrastructures
and strategies (opportunity charging, destination
2. Cities and municipalities should try and learn
charging) by taking into account the local context
from real-life use cases of e-bus implemen-
and specific service requirements. At the same time,
tation. Many cities have introduced e-buses
an optimised ratio between charging infrastructure
into their public transport system; identifying
and buses will also increase the profitability of the
cities with a similar typology and learning
scheme. Charging infrastructure can be used more
from their successes and challenges will be
frequently if shared among different transport types,
useful.
and thus the costs can be shared. Charging locations
3. De-risking is a must. The risks associated with need to be well planned with the involvement of
battery life expectancy and reliability should many different stakeholders.
be foreseen and included in the contract dur-
5. Exploring various options for funding e-buses (both
ing the tender process, and such risks could
upfront and operational costs), such as using grants,
be managed by making contractual arrange-
concessional loans, and green bonds, are likely to
ments (e.g., maintenance, extended warranty
encourage both public and private bus operators to
on batteries). A clear and detailed risk-free
procure an e-bus fleet. Increasing market demand for
(or risk-limited) business plan will help to
e-buses will also reduce future costs.
convince financiers to make the required in-
vestments. Various TCO calculations have 6. Different stakeholders need to have a clear agree-
shown that e-buses can be profitable. ment and common consensus on roles and respon-
sibilities. Coordination of bus operators alongside
operators of other electrical infrastructure, city-level
transport bodies, and other bodies such as research
institutes. Allowing these stakeholders to work to-
gether under a clear framework will allow the e-bus
implementation to be more effective and lower risk.
 General lessons learnt  Lessons learnt 33
7. Demand bundling and aggregation could have
a high impact, while joint procurement might
be important to reduce the high upfront cost of
both e-buses and charging infrastructure.
8. It is of great importance for the PTO and/or
service providers to monitor the use of e-bus-
es and acquire operational and charging data,
and analyse the data to get insights on bus
operation. This information should be commu-
nicated among different technical stakeholders
in an organised and structural way to properly
manage the bus operation and charging pro-
cesses. Dissemination of this data could also
help other regions implement e-buses.
9. PTAs and PTOs should be flexible in adapting
current bus routes or public transport timeta-
bles to better match the e-bus fleet profile to
take into account charging time.
10. A clear high-level regulation framework and
political support are of utmost importance in
pushing the e-bus solution to a larger scale,
which will further stimulate the demand and
drive supply in the EU e-bus market. Best prac-
tices can be very valuable and guide EU cities
in the transition process towards the electrifi-
cation of public transport
© Semitan
 E-Bus Solution Booklet Januar y 2023 34

USEFUL DOCUMENTS

© Kelly Brito on Unsplash

 E-Bus Solution Booklet Januar y 2023 35

USEFUL DOCUMENTS AND RELEVANT EXAMPLES

E-bus policy and information
Ά European Urban Mobility Policy Context
Ά Smart choices for cities - Clean buses for your city
Ά Electric buses arrive on time - Marketplace, economic, technology, environmental and policy perspectives for fully electric buses in the EU
Ά Electric Buses in Cities - Driving Towards Cleaner Air and Lower CO2
Ά ZeEUS eBus Report – An updated overview of electric buses in Europe
Ά Zero Emissie Busvervoer Vlaanderen
Ά ELIPTIC Policy Recommendations - electrification of public transport in cities
Ά UITP - The Impact of Electric Buses on Urban Life
Ά Going electric - a pathway to zero-emission buses
Ά Decarbonising road transport The role of vehicles, fuels and transport demand
Ά European Clean Bus Deployment Initiative
Ά OPTIMOB - Decision support tool for bus line electrification
Ά ELIPTIC - E-Bus Decision Support Tool
Ά Optimob decision support tool for bus line electrification

Smart Cities and Communities project websites and deliverables on e-buses

Ά IRIS
Ά mySmartLife
Ά SmartEnCity.eu
Ά Triangulum
Ά REPLICATE
Ά REMOURBAN
Ά MAtchUP
 E-Bus Solution Booklet Januar y 2023 36

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the European Commission bringing together
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proposals by using our Investor Network and groups are fora where the participants can to live and work.
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E-BUS
SOLUTION BOOKLET
Smart Cities Marketplace 2023
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