Total Cost Of Ownership Model Research Articles

STRATEGIC PLANNING USING THE TOTAL COST OF OWNERSHIP MODEL

In a highly competitive global scenario, companies seek new ways to optimize production and implement continuous improvement mechanisms to reduce costs. An essential tool in this context is the Total Cost of Ownership model, applied to the acquisition processes of inputs to determine the costs involved and compare the economic viability between domestic and international suppliers. Given the unstable economic scenario and high exchange rate fluctuations, the possibility of nationalizing production is evaluated. The case study method is adopted, characterized as applied and exploratory research, with the objective of generating knowledge for practical application and solving specific problems. This method combines a literature review with exploratory field analysis. The studied company faces a loss of profitability due to rising import costs, reduced demand, and the loss of purchasing power of the national currency against international suppliers. The increase in costs resulting from exchange rate fluctuations necessitates the search for new supply options, primarily in the domestic market, where exchange rate influence is lower. Thus, the nationalization of inputs becomes crucial in business decisions to minimize costs and maintain competitiveness. The results indicate that the nationalization of production using the Total Cost of Ownership model is viable. This model considers all costs involved in the acquisition of inputs, unlike the traditional acquisition model, which focuses exclusively on the unit price.

Total Cost of Ownership of Electric Car and Internal Combustion Engine Car with Performance Normalization

In the transportation sector, motorized vehicles are currently a contributor to pollution in Indonesia, producing CO2 emissions. In an effort to achieve environmentally friendly and low-carbon motorized vehicles, promoting electric cars to the public is an important strategy that is being pursued by countries throughout the world. The large target of converting ICE cars to electric cars requires a series of analyzes to accelerate efforts to convert the use of electric cars from various angles which will ultimately be successful as a promotional medium for potential electric car users. To carry out this analysis, there is one calculation method, namely calculating the total cost of ownership (TCO) of an electric car. This method has been studied in countries that are concerned with promoting the use of electric cars. In this research, we will present a calculation model for the TCO of electric cars and the TCO of conventional internal combustion engine (ICE) cars as a comparison. The cars analyzed in this research consist of several electric cars and ICE cars according to their respective performance levels, where for each electric car an analysis of several battery ownership schemes is also attempted, namely those owned by the car owner, rental batteries and those owned by the car owner. However, some components can be repaired. The calculation model will consist of capital and operational costs, namely the purchase price, resale value, government subsidies, retailer discounts, battery replacement costs, maintenance, insurance, vehicle tax and energy consumption costs. All data was obtained from literature studies and information from vehicle distributors in Indonesia. The TCO model is analyzed based on the average distance traveled, namely 20,000 km/year for 10 years of driving. The research results show that the TCO of BEVs with a rental battery scheme is cheaper than ICEs for cars with 93, 167 & 210 hp, namely 2,961; 6,227; & 5,633 (USD) and the TCO of ICE is cheaper than BEV with a rental battery scheme on cars with 40 & 95 hp, namely 796 & 5,793 USD. Several components that make up TCO costs will later be proposed to be considered for adjustment so that vehicle purchases can grow significantly. Knowledge from this research can be useful for consumers, product manufacturers, planners, and government policy makers.

Evaluating Fuel Cell vs. Battery Electric Trucks: Economic Perspectives in Alignment with China’s Carbon Neutrality Target

The electrification of heavy-duty trucks stands as a critical and challenging cornerstone in the low-carbon transition of the transportation sector. This paper employs the total cost of ownership (TCO) as the economic evaluation metric, framed within the context of China’s ambitious goals for heavy truck electrification by 2035. A detailed TCO model is developed, encompassing not only the vehicles but also their related energy replenishing infrastructures. This comprehensive approach enables a sophisticated examination of the economic feasibility for different deployment contexts of both fuel cell and battery electric heavy-duty trucks, emphasizing renewable energy utilization. This study demonstrates that in the context where both fuel cell components and hydrogen energy are costly, fuel cell trucks (FCTs) exhibit a significantly higher TCO compared to battery electric trucks (BETs). Specifically, for a 16 ton truck with a 500 km range, the TCO for the FCT is 0.034 USD/tkm, representing a 122% increase over its BET counterpart. In the case of a 49 ton truck designed for a 1000 km range, the TCO for the FCT is 0.024 USD/tkm, marking a 36% premium compared to the BET model. The technological roadmap suggests a narrowing cost disparity between FCTs and BETs by 2035. For the aforementioned 16 ton truck model, the projected TCO for the FCT is expected to be 0.016 USD/tkm, which is 58% above the BET, and for the 49 ton variant, it is anticipated at 0.012 USD per ton-kilometer, narrowing the difference to just 4.5% relative to BET. Further analysis within this study on the influences of renewable energy pricing and operational range on FCT and BET costs highlights a pivotal finding: for the 49 ton truck, achieving TCO parity between FCTs and BETs is feasible when renewable energy electricity prices fall to 0.022 USD/kWh or when the operational range extends to 1890 km. This underscores the critical role of energy costs and efficiency in bridging the cost gap between FCTs and BETs.

ON THE PERFECTION OF THE APPROACH TO THE FORMATION OF A PROGRAM FOR INCREASING THE RELIABILITY OF FIELD PIPELINES IN OC ROSNEFT

The article describes an approach for ranking and selecting field pipelines based on the total cost of ownership of the facility for the purpose of timely repairs and minimization of accidents, as well as its software implementation. The principle of the proposed approach is to apply a technical and economic model of the total cost of ownership of a pipeline, which takes into account the costs of maintaining the pipeline over a long period of time, which include the costs of pipeline maintenance activities, pipeline failures and replacement of pipeline sections. This model allows determining which replacement year corresponds to the minimum accumulated maintenance costs, by varying the year of pipeline replacement from the start of operations to the planning horizon. The model also allows to take into account the impact of operational technological measures on the cost of pipeline ownership and the selection of the optimal year of repair.In order to take into account the level of pipeline accidents in the process of operation on the basis of operational data, a mathematical probabilistic model based on the Weibull distribution was developed. The mathematical model allows to take into account for each pipeline the influence of technical characteristics (diameter, length, wall thickness, material, coating, design features), operating conditions (type of pumped medium, technological mode of pipeline operation) and information on inspection and diagnostics. The accuracy of failure prediction using this model is at least 90 %.The approach to the formation of programs to improve the reliability of field pipelines with regard to optimal repair periods based on the total cost of ownership model is described, taking into account various objectives and constraints, among which the main ones are:- required achievable level of accidents;- acceptable amounts of financing for re-pairs;- permissible physical volumes of repairs along the length.The approach to forming reliability improvement programs described in this article has been implemented in Rosneft's corporate software system RN-SM. The implementation of this software package in production activities is being implemented in 2023–2024.

Electric and gasoline vehicle total cost of ownership across US cities

AbstractVehicle electrification can significantly decarbonize the transportation sector. Widespread adoption of electric vehicles (EVs) depends on their cost relative to conventional alternatives. Here we compare the total cost of ownership (TCO) of gasoline, hybrid, and electric vehicles. First, we review previous TCO studies, showing that the components (e.g., purchase price, financing, taxes, fees, insurance, refueling, maintenance, repair, and home charging equipment for EVs), parameters (e.g., vehicle miles traveled, discount rate, and lifetime), and methods differ greatly. Then, we develop a comprehensive TCO model comparing across five vehicle classes, three powertrains, and three EV ranges. Using 14 cities in the United States and multiple charging scenarios, we investigate TCO variability based on location and use pattern. We include adjustments for local gasoline prices, electricity rate plans, home charging access, and the impact of local temperatures and drive cycles on fuel economy, among other factors. We show that for a 300‐mile range midsize electric SUV, TCO varies by $52,000, or nearly 40%, across locations. Home charging access reduces the lifetime cost by approximately $10,000 on average, and up to $26,000. EVs are more competitive in cities with high gasoline prices, low electricity prices, moderate climates, and direct purchase incentives, and for users with home charging access, time‐of‐use electricity pricing, and high annual mileage. In general, we find that small and low‐range EVs are less expensive than gasoline vehicles. Larger, long‐range EVs are currently more expensive than their gasoline counterparts. And midsize EVs can reach cost parity in some cities if incentives are applied.

The social cost of carbon of different automotive powertrains: A comparative case study of Thailand

Global carbon dioxide (CO2) emissions have continuously grown over the past decade. In recent years, nations worldwide have encouraged the use of electric vehicles to reduce the use of fossil fuels in the global transportation sector. To encourage people to transition to electric vehicles, the total cost of ownership (TCO) is the main focus of devising appropriate incentives or subsidies. However, most TCOs emphasize the expenses an owner must incur, regardless of the hidden cost that society must pay. Consequently, the social cost of carbon plays a significant role in the assessment of the losses from the point of view of society. This study reveals the social cost over the lifetime of electric vehicles (EVs), compared to an internal combustion engine vehicle (ICEV). In this study, the energy consumption of the considered vehicles was obtained from a real-world driving test. The CO2 emissions from energy consumption and battery production are evaluated. The social cost model was developed based on the CO2 emissions. A sensitivity analysis validates the social cost model via case scenarios by considering assumptions and conditions suitable for Thailand’s context. The social cost model can be applied with the TCO model for government policymakers and manufacturer planners to estimate the appropriate subsidy to incentivize EV buyers and minimize the social costs.

Achieving Cost Parity for Battery Electric Vehicles in Africa: a case study of Ghana

ABSTRACT Ghana commits to reducing greenhouse gas emissions of 64 MtCO2 and reducing 2,900 premature deaths but has very low electric vehicle penetration. We used a total cost of ownership model to determine the cost of ownership parity of BEV compared to internal combustion engine vehicles (ICEV). The results show that BEV will not reach cost parity with ICEV until the 11th year. Waiving the 20% import duty on BEV only reduced the years to parity by a year. Cost parity for the BEV was achieved in the seventh year when the interest rate was reduced from 23% to 10%. By waiving import duty and reducing the interest rate of BEV to 10%, cost parity was reached right from the first year. BEV in Ghana could reduce CO2, NOx, VOC, SOx, and PM emissions by 72%, 85%, 99.2%, 41%, and 60% respectively. Based on the 7.17 MtCO2e attributed to transportation emissions in 2016, a BEV transition could reduce CO2 emissions by 5 MtCO2e. We conclude that a special financing scheme with an interest rate below 10% should be made available for green financing. Additionally, we recommend the removal of the 20% import duty for BEV to reach cost parity with ICEV.

IT-architecture management for small businesses based on total cost of ownership models

The article is dedicated to the tasks of IT architecture management according to the specifics of small and medium-sized businesses. The article comprehensively considers the object model of the IT service as the main component of the IT-architecture management. In the article, the authors propose to present an object model on different layers, which allows to consider the elements of the IT-architecture from different points of view. The service object model has logical and physical layers, where the physical layer consists of the hardware and some software components and the logical ones are the systems and subsystem as software products, and the service itself as a business value. The authors describes the main aspects of using the object model to identify elements of the IT-architecture. This shows that subsystems and the physical layer allows to apply the model of total cost of ownership. The study also identifies key steps in applying the total cost of ownership model to enterprise IT-architecture management; the most difficult stages for the development of small and medium-sized businesses are noted. As a result of the study, the authors developed an approach that allows you to determine the cost of individual IT-systems and their corresponding elements of the sharing infrastructure, taking into account the structuring of costs based on the total cost of ownership model. The authors assume that this approach will be most useful for small and medium-sized businesses. The authors propose to use approaches based on the use of an IT-service object model and a total cost of ownership model for solving IT-architecture management problems. The use of an object model allows to identify business value enterprise IT architecture, its components and their infrastructure elements. Applying the total cost of ownership model enables to use cost management the IT architecture.

European Green Deal Implications on Country Level Energy Consumption

Abstract Research background: The European Green deal set by the European Commission has launched new business models in sustainable development. Major contributions are expected in the road transport sector; as far as conventional internal combustion creates significant input in Green House Gas emission inventories. Each EU member state has an obligation to reduce GhG emission by accelerating Electric Vehicle development. In order to foster growth of EVs, there is the need of significant investment into charging infrastructures. The article propose the model of forecasting of investment based on the forecast of the growth of the amount of electric vehicles and their demand on energy. The model includes the behaviouristic approach based on the total cost of ownership model as well as calculations of efficient usage of EV charging points. The model takes into account all types of vehicles including personal and commercial, freight and passenger. Purpose: The aim of this article is to present a complex model for forecasting the required investments based on the fore-cast of the increase in the number of electric vehicles and their demand on energy and investments. Research methodology: The general algorithm of forecasting consists of several consecutive phases: (1) Forecasting the number of electric vehicles, (2) Forecasting the energy needed for electric vehicles, based on the forecast (1) and the predicted usage level of these vehicles. (3) Forecasting the charging station number with the expected technical capacities and characteristics of these charging stations based on the forecasts (1) and (2). (4) Forecasting the need to upgrade the low-voltage grid based on the forecast (3). (5) Calculating the total investment needed based on the results of the forecasts (3) and (4). The main limitations of the study are related to the statistics available for modelling and human behaviour uncertainty, especially in the evaluation impact of measures to foster use of electric vehicles. Results: The findings of the Lithuanian case analysis, which is expressed in three scenarios, focuses on two trends. The most promising scenario projects 319,470 electric vehicles by 2030 which will demand for 1.09 TWh of electricity, representing 8.4–9.9 percent of the total energy consumption in the country. It requires EUR 230, million in the low-voltage grid and EUR 209, million in the charging stations. Novelty: The scientific problem is that the current approach on the forecasting of electric vehicles is too abstract, forecast models cannot be transferred from country to country. This article proposes a model of forecasting investments based on the forecast of the increase in the number of electric vehicles and their demand on energy. The model includes the behaviouristic approach based on the total cost of ownership model as well as calculations of efficient usage of EV charging points. The model takes into account all types of vehicles including personal and commercial, freight and passenger. The article has proven that statistics-based forecasting gives very different results compared to the objective function and to the evaluation of the effects of measures. This has not been compared in previous studies.

Approximate Cost-Optimal Energy Management of Hydrogen Electric Multiple Unit Trains Using Double Q-Learning Algorithm

Energy management strategy (EMS) is the key to the performance of fuel cell / battery hybrid system. At present, reinforcement learning (RL) has been introduced into this field and has gradually become the focus of research. However, traditional EMSs only take the energy consumption into consideration when optimizing the operation economy, and ignore the cost caused by power source degradations. It would cause the problem of poor operation economy regarding Total Cost of Ownership (TCO). On the other hand, most studied RL algorithms have the disadvantages of overestimation and improper way of restricting battery SOC, which would lead to relatively poor control performance as well. To solve these problems, this paper establishes a TCO model including energy consumption, equivalent energy consumption and degradation of power sources at first, then adopt the Double Q-learning RL algorithm with state constraint and variable action space to determine the optimal EMS. Finally, using hardware-in-the-loop platform, the feasibility, superiority and generalization of proposed EMS is proved by comparing with the optimal dynamic programming and traditional RL EMS and equivalent consumption minimum strategy (ECMS) under both training and unknown operating conditions. Results prove that the proposed strategy has high global optimality and excellent SOC control ability regardless of training or unknown conditions.

Developing a Total Cost of Ownership Model for Semi-Automated, Automated and Electric Vehicles

Developing a Total Cost of Ownership Model for Semi-Automated, Automated and Electric Vehicles

Cost Profile of Membranes That Use Polymers of Intrinsic Microporosity (PIMs)

Assessing the financial impact of polymers of intrinsic microporosity, otherwise known as PIMs, at the lab scale has been impeded by the absence of a holistic approach that would envelop all related financial parameters, and most importantly any indirect costs, such as laboratory accidents that have been consistently neglected and undervalued in past assessments. To quantify the cost of PIMs in relation to the risks befalling a laboratory, an innovative cost evaluation approach was designed. This approach consists of three stages. Firstly, a two-fold “window of opportunity” (WO) theory is suggested, dividing the total cost profile into two segments, followed up by a qualitative risk analysis to establish the potential cost components. The last stage builds on a total cost of ownership model, incorporating the two types of WO. The total cost of ownership (TCO) approach was selected to ascertain the costs and construct the cost profile of PIMs, according to laboratory experimental data. This model was applied to the synthesis and physicochemical characterization processes. The quantitative analysis revealed that the most influential parameters for synthesis are accidents and energy costs. This is in contrast with the physicochemical characterization process, where the most important determinant is the energy cost.

A Comparative Evaluation of the Total Cost of Ownership between Electric Two-Wheelers and Motorized Two-Wheelers from an Indian Perspective

A comparative assessment of the total cost of ownership (TCO) is necessary to quantify overall costs and assess the economic viability of electric two-wheelers (E2W) compared with motorized two-wheelers (M2W). In this regard, TCO models specifically for two-wheelers were developed in this study to compare the TCO of E2W and M2W under the prevailing market conditions. The TCO model has four cost components, namely, acquisition costs, operating costs, maintenance costs, and resale value. The TCO was calculated considering a 10-year assessment period with 2021 as the base year. The available E2W and M2W alternatives in the Indian market were classified into low-performance (Category A) and high-performance (Category B) two-wheelers based on their power output and acceleration characteristics. The TCO estimates were also evaluated for three different average daily distances traveled ( ADDT): 10 km/day, 30 km/day, and 50 km/day. The results revealed that the TCO estimates for E2W vary from ₹0.67/km for an ADDT of 50 km/day for Category A E2W during the base year condition to₹7.66/km for an ADDT of 10 km/day for Category B E2W at the end of the assessment period. Further, the payback periods for different scenarios were also estimated and compared. The acquisition and battery replacement costs are critical factors for potential users of E2W, and act as a significant barrier to the widespread adoption of E2W in India. Finally, it can be concluded that E2W are an economically viable alternative compared with M2W, with payback periods ranging from one year to eight years in the Indian context.

The cost of a transition to electric vehicles in Africa: A case study of Ghana

This case study investigates the total cost of ownership (TCO) of four plug-in electric vehicles (PEV) compared with an internal combustion engine vehicle (ICEV) in Ghana over 20 years. The TCO model incorporated the manufacturer’s suggested retail price (MSRP), tax, fuel cost, charging cost, maintenance cost, social cost, and residual value including depreciation. A sensitivity analysis was used to determine the effect of the factors on TCO. Emissions of PEV were determined based on the emission factor of the energy mix. The results show that under the prevailing energy mix, the TCO of ICEV is higher than PEV by at least 30%. While the TCO of three of the PEV was consistently lower in each of the 20 years, but that of the Tesla Model 3 was not until the 12th year. High MSRP and tax regime were contributory factors. While the social cost of ICEV was found to be 164% higher, a renewable energy mix of below 20% was found to be detrimental to the environmental advantage of PEV in Ghana. For each ICEV replaced by an electric vehicle, one-third of emissions savings will be achieved under the prevailing energy mix. But at a renewable energy mix of 15% and below, PEV in Ghana will give more emissions than ICEV. Future expansion in the energy grid should focus on renewable energy. Import tax, if waived could reduce TCO by $0.12/mile. Consequently, the current tax regime on PEV in Ghana could be revised. It is also recommended that the price difference between electricity cost per kilowatt and fuel cost per gallon should always exceed $4 dollars to make PEV competitive.

The economic feasibility of green hydrogen and fuel cell electric vehicles for road transport in China

In September 2020, the Chinese central government announced a new policy to develop hydrogen energy and fuel cell applications. It emphasized fuel cell commercial vehicles rather than passenger vehicles. Such an emphasis is drastically different from the hydrogen and fuel cell strategies of other leading economies. This study aims at providing insights into the justification behind it. It develops quantitative models to conduct economic assessments of the feasibility of hydrogen energy produced from renewable energy and subsequently applied in the road transport sector in China. A well-to-wheel model is developed to estimate the carbon emissions of the hydrogen supply chain as well as that of the fuel cell electric vehicles. In the meantime, a levelised cost of hydrogen model is adopted to analyze the cost of hydrogen as storage for renewable energy. These are followed by a total cost of ownership model applied to assess the cost of owning and driving fuel cell electric vehicle, fueled by the hydrogen produced from renewables, compared to alternative vehicle powertrains, especially those fossil fuel-based. On such a basis, the relation between energy policies and the competitiveness of hydrogen produced from renewable energy and the fuel cell electric vehicle is discussed.

Comparing Total Cost of Ownership of Electric and Conventional Motorcycles in Indonesia

The adoption of Electric Vehicles (EV) is one of the solutions to reduce emission problems. In Indonesia, the government targets 2.1 million Electric Motorcycles (EM) ownership in 2025. One of the keys to encouraging the EV Indonesian market is vehicle cost analysis, like Total Cost of Ownership (TCO). This study developed a TCO model to compare EM with Conventional Motorcycles (CM) in Indonesia. Data were collected from surveys and information from stakeholders. The proposed TCO model considered a battery replacement cost, which influenced the resale value of the vehicle. As a result, the TCO of EM had a more economical value than CM of 12% (IDR 3 million) on low mobility, 16% (IDR 4 million) on medium mobility, and 18% (IDR 5.5 million) on high mobility. In addition, several scenarios were also analyzed as a study to consider providing subsidies ownership motorcycles in Indonesia.

Economic competitiveness and environmental implications of hydrogen energy and fuel cell electric vehicles in ASEAN countries: The current and future scenarios

Hydrogen as an energy carrier faces challenges such as high costs of hydrogen supply, high cost of fuel cell electric vehicles (FCEVs), and substantial infrastructure requirements. However, leading countries have announced long-term plan and targets in developing hydrogen energy. Should the Association of Southeast Asian Nations (ASEAN) follow up such developments? This study asks if hydrogen-based road transport, especially FCEVs in the fleets of passenger cars, buses, and trucks, could be economically justified in the ASEAN member states. If not, what strategies to take for ASEAN member states? The study applies a well-to-wheel model and a total cost of ownership model to compare the energy consumption, carbon emissions, as well as the costs of FCEVs with those of alternative powertrains. This practice shows the scale of the cost gaps. Subsequently, it estimates the implications of predicted future developments of both hydrogen and FCEVs, in terms of costs and carbon emissions reduced. The results indicate the areas in which FCEVs are most likely to become competitive in the near future, and thus could be targeted and prioritised. By comparing the country-specific results, implications are extended to what policies are most relevant in facilitating the development of hydrogen and fuel cell.

Techno‐economic analysis of inflight connectivity using an integrated satellite‐5G network

SummaryThe demand for mobile broadband services is increasing exponentially alongside with user expectations regarding the reachability of these services and their prices. This paper presents an integrated satellite and fifth generation (5G) network for providing inflight connectivity and evaluates the economic viability of offering broadband connectivity to passengers on commercial airplanes by the development of a techno‐economic framework, which considers both capital and operational expenditures to compute the total cost of ownership (TCO) and an average cost per user and per Megabyte. Results show high operational costs mainly due to satellite bandwidth usage. Therefore, caching popular content on the network onboard is beneficial to reduce the traffic carried over the satellite link, thus lowering the operational costs as well. Furthermore, the framework is used to compare the identified business models for Inflight Entertainment and Connectivity offerings and their pricing strategies, alongside a benchmark against the current inflight connectivity pricing. Finally, a sensitivity analysis is elaborated in order to mitigate the uncertainty of inputs (e.g., rate of caching) used to feed the TCO model. Following concrete recommendations are the main result of this research: (1) Providing inflight broadband services with a 2–5 Mbps throughput per user is feasible if satellite communications is integrated into the 5G network. (2) Caching popular data reduces the operational costs and hence the average cost per user (from 25% to 32% depending on the caching rate adopted). (3) This framework allows to provide recommendations on the best suited business models and related pricing schemes.

A Comprehensive TCO Evaluation Method for Electric Bus Systems Based on Discrete-Event Simulation Including Bus Scheduling and Charging Infrastructure Optimisation

Bus operators around the world are facing the transformation of their fleets from fossil-fuelled to electric buses. Two technologies prevail: Depot charging and opportunity charging at terminal stops. Total cost of ownership (TCO) is an important metric for the decision between the two technologies; however, most TCO studies for electric bus systems rely on generalised route data and simplifying assumptions that may not reflect local conditions. In particular, the need to reschedule vehicle operations to satisfy electric buses’ range and charging time constraints is commonly disregarded. We present a simulation tool based on discrete-event simulation to determine the vehicle, charging infrastructure, energy and staff demand required to electrify real-world bus networks. These results are then passed to a TCO model. A greedy scheduling algorithm is developed to plan vehicle schedules suitable for electric buses. Scheduling and simulation are coupled with a genetic algorithm to determine cost-optimised charging locations for opportunity charging. A case study is carried out in which we analyse the electrification of a metropolitan bus network consisting of 39 lines with 4748 passenger trips per day. The results generally favour opportunity charging over depot charging in terms of TCO; however, under some circumstances, the technologies are on par. This emphasises the need for a detailed analysis of the local bus network in order to make an informed procurement decision.

Total Cost of Ownership Model and Significant Cost Parameters for the Design of Electric Bus Systems

Without experiences of electric buses, public transport authorities and bus operators have faced questions about how to implement them in a cost-effective way. Simple cost modelling cannot show how costs for different types of electric buses differ between different routes and timetables. Tools (e.g., HASTUS, PtMS, and optibus) which can analyse such details are complicated, time consuming to use, and provide insufficient insights into the mechanisms that influence the cost. This paper therefore proposes a method for how to calculate total cost of ownership, for different types of electric buses, in a way which can predict how the cost varies based on route and timetable. The method excludes factors which cause minor cost variations in an almost random manor, in order to better show the fundamental mechanisms influencing different costs. The method will help in finding ways to reduce the cost and help to define a few cases which deserve a deep analysis with more complete tools. Testing of the method in a Swedish context showed that the results are in line with other theoretical and practical studies, and how the total cost of ownership can vary depending on the variables.