Electric Buses Accelerate Renewable Transition in Sri Lanka

Electric vehicles promise huge additional benefits in public health, agriculture, and climate change mitigation. Sri Lanka's total GHG emissions in 2019 were 38 million tonnes of CO2e, out of which transport sector emissions were estimated to comprise 10.5 million tonnes. In 2021, Colombo's PM2.5 concentration was five times the WHO norm, significantly worsening air pollution in the city and surrounds. 

With the support of the UNDP, the government of Sri Lanks developed pilot projects for both electric tuk-tuks and public buses. The CCAC has joined the UNDP in supporting the pilot project on a modern public transport system with e-buses , which would provide a platform for scaling up with funding from the GCF. Preparations for the pilot will include developing a comprehensive Sustainable Low-Carbon Transport Plan, a comprehensive regulatory framework for electric bus mobility, a feasibility study for the impact on the electricity grid, and a technical, operational financial and regulatory viability assessment of EV charging technology standards and suitability. The practical implementation of the project will also pilot five electric buses running on a new city circular route in Colombo. 

In addition to the black carbon mitigation goals of the project, the introduction of modern electric buses to Colombo aims to improve the public image of public transport, incentivise formalisation of the transport sector, and improve service standards, particularly for women and people with mobility challenges and attract users of personal transport.   

The pilot project will gather data and prove the business case for further green investment funding for expansion of electric bus services. It will do so through the piloting of a tailored financial product for local governments and interested private investors in Sri Lanka, which takes into account electricity capacity and fare considerations in a financially viable model. This financial product will help private sector stakeholders such as large textile manufacturers who provide bus transport for workers to electrify their fleets as a part of their commitments to Sri Lankas renewable energy transition. Total investment needs for electric buses are not yet known, however the UNDP’s experience with the Tuk-Tuk fleet showed that to electrify the 1.2 million-strong fleet would cost US$5 billion. 

Investments in major infrastructure advances such as electric buses often spur advancements in related areas such as the use of congestion and traffic data, electricity grid upgrades, and road upgrades. To support these upgrades, and as a part of Sri Lanka’s renewables transition, the government has recently regulated energy-wheeling, which allows more diversified investment in solar and wind energy across the country.  

The project also plans to use mobile global positioning system data to improve the service to users of public transport, electric bus efficiency , fleet financial sustainability. In addition to infrastructure upgrades, Sri Lankan workers will also benefit from opportunities to upskill in vehicle maintenance and electrical engineering roles to service electric buses and tuk-tuks. Enhancing the capacities of the labor force is an important aspect of ensuring all sectors of society are included in a just transition.  

In addition to the public health benefits of eliminating a major black carbon emissions sector, cleaning up public bus systems in the world’s largest cities has been shown to be commercially advantageous within 10 years. CCAC partner the International Council on Clean Transport has shown that electric urban bus fleets will on average deliver lower total cost of ownership.  

Studies in developed country contexts have shown that replacing older diesel buses with electric buses resulted in $84,200 in total benefits per bus. Each electric bus emitted 181 fewer metric tons of carbon dioxide than its diesel counterpart, equating to $40,400 in climate benefits and $43,800 in health savings due to reduced air pollution.  

Developing countries are often the recipients of second-hand heavy-duty vehicles like trucks and buses, meaning that without intervention and investments in clean transport, the global market uptake of electrification has a slower timeline in developing nations. This makes pilot studies such as Colombo’s electric bus project especially important in their potential to help developing nations leap-frog to electrification instead of remaining limited to older transport technology.