Can retrofitting reduce the cost of electric buses?
Can retrofitting reduce the cost of electric buses?
As the domestic automobile industry gears up for the faster adoption of greener technologies, retrofitting is touted to be one of the most viable options that can reduce the cost of electric buses. Retrofitting an ICE (internal combustion engine) bus is 32.1% more cost-effective than a new electric bus, according to a report by Primus Partners, in collaboration with the Economic Growth and Welfare (EGROW) Foundation, a non-profit organisation.
Retrofitting is the process of transforming existing ICE vehicles into electric ones. The procedure entails swapping out the original engine and any associated parts for a new alternative energy source that will be installed inside the current vehicle body.
Titled ‘Retrofitting of Inter-City Diesel Passenger Buses: An Economic Analysis and Policy Prescriptions’, the report highlights that a standard retrofit on a 9-metre bus will reduce the cost per kilometre by approximately 34.48% compared to an ICE bus. Citing an example, the report says that an ICE bus costs more than Rs 29 per km, while an electric one costs Rs 28 per km. If a 9-metre bus is retrofitted with a lithium-ion battery, it will cost Rs 19 per km whereas a 12-metre retrofitted bus with two batteries will cost nearly Rs 22 per km and a 12-metre retrofitted bus with three batteries will cost marginally more than Rs 23 per km. Meanwhile, in a new electric bus, the cost of lithium-ion batteries accounts for 40-50% of the pricing of the vehicle.
“Retrofitted buses promise major output on RoI (return on investment). For a 9-metre retrofitted bus with an extended life of 10 years, the cost per km declines to less than Rs 15/-. Using the same calculation, the cost per km for a 12-metre bus with two batteries is less than Rs 17/- and less Rs 19/- for a 12-metre bus with three batteries,” says the report.
As per the report, if India retrofits 20,000 buses annually, it can save about 5,00,000 tons of diesel and reduce crude oil imports by 12.7 million barrels yearly. Retrofitting will also increase the useful life span of existing vehicles by 8 to 10 years and will allow them to be exempted from the scrappage policy. The automobile industry can also contribute substantially to India’s goal of creating 30-35 million new green jobs by 2047.
In terms of employment, retrofitting electric buses is projected to add 6,000 to 7,000 direct jobs and 36,000 to 42,000 new indirect jobs in the next few years. The report recommends retrofitting incentives into the FAME (Faster Adoption and Manufacturing of Electric Vehicles) policy to boost EV adoption.
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