A non-profit that assisted with the island’s adoption of an electric bus fleet praised the project as a resounding success, while noting opportunities for improvement.

Energising Public Transport for Islands, a report compiled by the Rocky Mountain Institute, said the project had resulted in cost savings and improved bus services.

The report added: “Bermuda’s leadership has demonstrated significant progress but the challenge is far from solved.

“A suite of decisive policy measures and market interventions is necessary to build momentum and move Bermuda — and all islands — towards a low-carbon, sustainable transportation future.”

As of September, the bus fleet included 70 electric buses and 40 diesel buses.

However, the report noted that only nine of the remaining diesel buses were typically in service.

The RMI report said that the costs to repair or replace the ageing diesel vehicles in the fleet would continue to rise and the shift to electric buses had meant the Department of Public Transportation faced “limited support” from its diesel bus manufacturer.

“Recognising the crucial role public transportation plays in mobility and connectivity on the island, DPT is committed to providing access to reliable, efficient and sustainable transportation options,” the report said.

“Therefore, its next objective is to procure 30 additional e-buses to fully electrify the fleet and bring operations to full capacity.

“This addition would complete the fleet, create necessary redundancies for smooth operation and position Bermuda well ahead of its goal for complete electrification by 2030.”

The report said that in addition to the estimated annual $400,000 in fuel savings, the Government had seen costs for parts and labour fall because of the lower maintenance required for the new vehicles.

“These savings are sufficient to cover the purchase of at least two new buses each year, aiding the DPT in its objective to replace and electrify its fleet economically and efficiently,” the report stated.

The report added that additional cost savings could be garnered through the installation of solar panels with a 427kW rooftop solar system earmarked for the central depot in Devonshire.

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“This system will export energy to the grid and achieve savings through a feed-in-tariff, reducing the depot’s energy costs by an estimated monthly average of $6,000,” the report said.

“This will increase total fuel cost savings for DPT to $500,000 per year. The central depot is also located close to the Tyne’s Bay waste-to-energy facility, which exports energy generated from waste combustion to the grid.

“DPT has explored the feasibility of connecting this generation to the bus depot and, if implemented, could present another opportunity to reduce grid energy, further lowering net charging costs.”

The RMI report also said that the department could reduce its energy expenses by changing the tariff under which it is charged.

“The bus fleet currently charges according to the operating schedule and is billed on the electric utility’s Small Commercial electricity tariff,” the report noted.

“As this tariff is based on the total kilowatt-hours used at each location, charge management practices that reduce the hourly peak load do not have a cost-reduction benefit because the charging cost is not dependent on the peak demand.

“Additionally, the high energy cost within this tariff means the average cost is $0.52 to $0.56 per kWh, among the most expensive electricity rates in the world.”

The report suggested that switching to the Class A Demand tariff could reduce charging costs by between 20 per cent and 40 per cent, depending on how charging was spread across the day and if a charge management system was implemented.

A spokeswoman for the Ministry of Public Transport said: “With the fleet growing to 70 electric buses by December 2023, this has significantly enhanced public transportation operations while yielding substantial economic and environmental benefits.

“The report explores the planning and implementation phases of the electric bus initiative, shedding light on the lessons learnt and challenges overcome.

“It offers best practices that can serve as valuable insights for other island nations pursuing similar transit electrification efforts.

“This shift not only modernises the island's public transit system but also replaces outdated diesel buses, contributing to an expected annual savings of over $400,000 in fuel costs and the avoidance of 800,000 litres of imported diesel fuel.”

Wayne Furbert, the Minister of Transport, also celebrated the benefits of electric buses, noting they were more economical, quieter and emitted fewer pollutants.

“We hope Bermuda can serve as a model for other island communities in their own electric transitions,” he added.