Impact of Critical Variables on Economic Viability of Converted Diesel City Bus into Electric Bus

A European Strategy for low-emission mobility of 2016 states that Europe needs to accelerate the transition towards low- and zero-emission vehicles like some plug-in hybrids, full electric cars and fuel cell (i.e. hydrogen-powered) vehicles. Transition to a low-carbon economy is supported in all EU countries including Latvia. Through the Strategy, the European Commission is working to strengthen the economy by promoting sustainable urban mobility and increased use of clean and energy efficient vehicles and looking into how to accelerate this process. Cities are crucial for the delivery of this strategy, and electrification of buses is a step towards reducing the fossil fuel dependency of the transportation sector as well as creation of a healthier urban environment. At the same time electric buses are still a challenge for public transport operators due to high aquisition costs of a new vehicle and lack of charging infrastructure. Therefore conversion of diesel city bus into electric bus is one of the alternatives considered. The development of local economy along with the technological opportunities are important factors to be considered in the decision making regarding the use of electric bus in a city. Economic viability of converted diesel city bus into electric bus can be parameterized using an economic model that allows to estimate an impact of critical variables on the total cost of ownership. In this paper, a specific case of operating converted diesel bus into electric bus in a city of Latvia is analyzed. With the help of economic model critical variables are determined as well as their switching values, which make the use of converted diesel engine bus into an electric vehicle economically viable. The results of economic analysis are in favour of converted electric bus which apart from lower O&M costs provide additional benefits to the environment.