Financing electric and hybrid-electric buses

As electric and hybrid-electric buses gradually become a reality worldwide, achieving a better understanding of the mechanisms supporting investments in these new technologies as well as their assets is more important than ever. The global electric bus fleet grew about 32 percent in 2018, and it represents the fastest-growing part of the electric vehicle market. Nevertheless, capital costs for fully electric buses may be double or triple that of conventional internal combustion engine (ICE) buses, and batteries may need to be replaced after six to eight years, highlighting the importance of finding sustainable financial plans and business models. This paper seeks to build on guidance provided by existing literature and dive deeper into some of the financial issues cities face, such as decisions about the different technologies, plans, operations, procurement strategies, regulations, and financing opportunities. The questions have been selected by the authors based on literature reviews, extensive desktop research into specific case studies, and interviews with stakeholders and global experts in the field. Thus, the responses are not meant to be prescriptive but instead represent the findings of the research.