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The economics of public transport electrification: When does infrastructure investment matter?

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Listed:
  • Say, Kelvin
  • Brown, Felix Gabriel
  • Csereklyei, Zsuzsanna

Abstract

This paper examines the economic and policy implications of the charging, network and auxiliary infrastructure required for a fully electrified metropolitan Melbourne bus network using overnight depot charging. We introduce the concept of minimum and maximum fleet charging capacities, as well as a charging infrastructure augmented total cost of ownership that is faced by bus fleet owners. Our analysis provides policy makers with a range of viable fleet charging capacities and a cost component breakdown of public bus fleet electrification using battery electric vehicles. We find that a minimum of half the fleet's rated charging capacity is needed to maintain operation, which provides a lower bound for network and charging infrastructure costs. Considering the augmented total cost of ownership (per km), charging, network and auxiliary infrastructure costs contribute 10–19%. A gradual transition to battery electric buses over 12 years yields further TCO savings of between 4.6 and 5%. We recommend streamlining the network augmentation process to reduce uncertainty and project delays.

Suggested Citation

  • Say, Kelvin & Brown, Felix Gabriel & Csereklyei, Zsuzsanna, 2024. "The economics of public transport electrification: When does infrastructure investment matter?," Applied Energy, Elsevier, vol. 360(C).
    • Handle: RePEc:eee:appene:v:360:y:2024:i:c:s0306261924001922
    DOI: 10.1016/j.apenergy.2024.122809
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    More about this item

    Keywords

    Public transport electrification; Charging requirements; Network augmentation; Backup power; Transportation policy;
    All these keywords.

    JEL classification:

    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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