Facilitating adoption of electric buses through policy: Learnings from a trial in Norway

Learning from first experiences of battery-electric bus (E-bus) trials is important to facilitate uptake and develop effective public policy. Here we present initial E-bus trials in Oslo and use the case to 1) model total cost of ownership (TCO) of E-buses vs. diesel buses, and 2) discuss challenges, opportunities, and policy implications. Together, this yields a holistic analysis of requirements for speeding up E-bus adoption, spanning operators and policymakers. Results revealed that rapid E-bus roll-out was achieved through successful contract change order use combined with authority support to reduce operator risk. Challenges were encountered surrounding technical issues, climatization energy use and infrastructure establishment in dense urban areas. In addition, urban Ebus TCO is currently high, and since operation is mostly tender controlled with investment costs covered, higher costs must be covered by public budgets. Despite challenges, operators are positive to further E-bus use, suggesting that companies are willing to support innovation when financial risk is low. We expect E-bus operation to become competitive to diesel buses in Oslo by 2025; to facilitate adoption before economic parity, municipalities and transport authorities must continue to play a large role. Further regulation is also urgently needed to facilitate common infrastructure planning and development.

Automated summary

This study presents initial experiences of battery-electric bus trials in Oslo to compare the total cost of ownership between E-buses and diesel buses, and to discuss the challenges, opportunities, and policy implications of E-bus adoption. The results show that successful contract change orders and support from authorities can accelerate the rollout of E-buses, even though the high TCO of urban E-buses requires financial support from public budgets. Despite challenges, operators are positive about further E-bus adoption, indicating that financial risk plays a key role in supporting innovation in the transportation sector.