How Bermuda’s switch to electric buses cut emissions and costs: RMI report

At a glance

Energizing Public Transit for Islands: Lessons from Bermuda’s Electric Bus Initiative, by Aradhana Gahlaut, Raquel Soat, Edward J. Klock-McCook. RMI, October 2024.

Can a public transit system be fully electrified? A report by American think tank RMI (formerly known as the Rocky Mountain Institute) shows that Bermuda, an archipelago in the North Atlantic, is well on its way. The Bermuda Department of Public Transportation (DPT) now has 70 electric public transit buses in its fleet, allowing it to reach nearly 100 per cent electrification in daily operations. This reduces annual carbon dioxide emissions by 1,200 tons. It also results in annual savings of $400,000 in fuel costs in Bermuda, which depends almost entirely on imported oil with fluctuating prices. The service is also more reliable, which is a key result since replacing an aging fleet was a bigger motivation than cutting emissions. The report highlights how strategic planning, robust procurement and investments in local workforce training were central to this success. It has also acted as a catalyst for other government efforts related to the energy transition. RMI, which partnered with the DPT on this project, also says Bermuda’s experience serves as a model for other island nations looking to reduce their emissions, save on public transit costs and improve energy security.

Key findings

• Cost savings: Bermuda’s fleet of 70 electric buses saves over $400,000 annually in fuel costs. This is equivalent to funding the purchase of two additional e-buses each year. 
• Lower greenhouse gas emissions: The electric bus fleet prevents the release of 1,200 tonnes of CO₂ annually. This is comparable to the emissions from 600 cars. 
• Air quality and health: Bermuda’s e-buses produce zero tailpipe emissions. The fleet avoids 350 kg of NOx and 4 kg of PM2.5 annually, linked to respiratory diseases affecting residents.
• Strategic fleet expansion: The government plans to purchase an additional 30 e-buses to replace aging diesel models. It aims for complete electrification of its public transit by 2030.
• Resilient charging infrastructure: The Bermuda DPT has installed 49 weather-resistant chargers across three depots. They are designed to withstand high humidity and tropical storms.
• Local workforce development: Bermuda has trained 13 local technicians and first responders on EV maintenance and emergency protocols, building local capacity and resilience in managing operations.

Take a look

Bigger picture

When Bermuda decided to begin electrifying its fleet of public buses in 2018, having a positive impact on the climate was not the primary concern. The report says that much of its aging fleet of diesel-powered buses was in bad shape, resulting in service disruptions and much money spent on repairs and replacements. Seeing the use of e-buses elsewhere in the world, and having begun to boost domestic generation of renewable energy, the local government decided electrifying the fleet was a good long-term investment.

The benefits of electrifying a public transit system — including reduced tailpipe emissions, lower costs and enhanced customer experience — are discussed in detail, but the report also contains valuable insights into the strategic planning, technical research and analysis the DPT did (in partnership with RMI) before the first e-bus joined the fleet. For example, a decision to look at total lifetime operating costs — including reduced fuel and maintenance costs compared to internal-combustion engines — rather than upfront costs changed the perceived economic viability of the project. This helped Bermuda decide to invest right away in the major charging infrastructure and site upgrades needed for a fully electric fleet, rather than testing out a pilot. While this meant more money needed at the beginning, it also meant only having to do it once to meet both present and future operational needs for a fully electrified fleet. While the e-buses have an expected useful lifespan of 10 to 15 years, the infrastructure will be in use for much longer.

The report argues Bermuda’s experience is a replicable model for small islands and remote regions aiming to reduce emissions and enhance public transportation through electrification. It offers practical insights, especially for locations that depend on imported fuels and face unique geographic challenges. It also notes that Bermuda’s geography offers an opportunity for leadership in EV adoption, given shorter driving distances help alleviate range anxiety. The report also illustrates how smaller markets can successfully pursue sustainable progress, encouraging manufacturers and financiers not to overlook investing in them. 

Challenges and opportunities

Key barriers to electrifying public transport for small islands:

• High initial costs: Significant upfront expenses for electric buses and charging infrastructure pose a major hurdle, particularly for small markets with limited resources.
• Procurement delays: Long lead times for sourcing essential equipment, such as transformers and EV chargers, can be exacerbated by geographic remoteness and global supply chain disruptions.
• Limited interest in smaller projects: Smaller fleet sizes and specific vehicle requirements for countries like Bermuda can deter large original equipment manufacturers who prioritize higher-volume markets.
• Weather-related challenges: Bermuda’s extreme weather, including tropical storms and high humidity, necessitates weather-resistant equipment. This can increase costs and complicate long-term planning.
• Specialized workforce requirements: The transition to an electric fleet demands a skilled workforce for maintenance and emergency response. 

To address these challenges, the report recommends:

• Long-term project economics: Despite high upfront costs for electric buses, total operating costs over a vehicle’s lifetime provide long-term savings. Committing to a large-scale project instead of a pilot boosts savings and infrastructure utilization.
• Demand-based tariffs: Switching to demand-based electricity tariffs could reduce charging costs in Bermuda by 20 to 40 per cent. This helps transit agencies align charging schedules with grid demand.
• Renewable energy integration: Installing local renewable energy sources, such as rooftop solar or waste-to-energy facilities, can slash energy costs for electric fleets and enhance resilience.
• Workforce training programs: Training technicians and first responders in EV technology can create a skilled local workforce to ensure effective maintenance and support for electric bus services.
• Infrastructure resilience: Investing in climate-resilient infrastructure, such as IP54- or IP66-rated charging equipment and underground cabling can help protect equipment from extreme weather.
• Data-based decision-making: Implementing telematics systems on electric buses can provide useful data on usage and battery performance. This can help optimize operations and inform future policy improvements.

In their own words

The e-buses served as the first move toward a long-term transportation electrification strategy in Bermuda, exposing many residents to EVs for the first time. The project has resulted in the training and upskilling
of a large cohort of technicians and first responders in EV maintenance and operations and nudged the government and the electric utility to consider and plan for EV charging load.

Energizing Public Transit for Islands: Lessons from Bermuda’s Electric Bus Initiative, by Aradhana Gahlaut, Raquel Soat, Edward J. Klock-McCook, Rocky Mountain Institute (RMI), Oct., 2024.

Final thoughts

Bermuda’s switch to a predominantly electric public bus fleet, well ahead of its 2030 target, shows the economic, environmental and operational benefits over internal combustion engine equivalents. The report outlines lessons on how to deliver the same benefits to other regions that might also have unique contexts, along with practical recommendations. It mentions combining charging depots with rooftop solar to slash costs and emissions even further, although the report could have included more detailed strategies for integrating renewable energy sources into the charging infrastructure. This is essential for fully decoupling from fossil fuels, resulting in financial savings and more robust energy security.

Download the full report originally published by RMI in October 2024.