SUSTAINABLE BUS 2-2023

OUTLOOKS
FUNDING THE UK’S
DEVOLVED ADMINISTRATIONS
Scotland, Wales, and Northern Ireland
have received funding to invest in
plans similar to ZEBRA with over 600
zero emission buses funded so far. In
Scotland, the ScotZEB scheme launched
in 2021 pledged £62m (€70m) to nine
operators and local authorities to cover
276 ZE buses and infrastructure, and a
£58m (€66m) second phase is expected
this year. A notable investment
example includes FirstBus’ introduction
of 193 electric buses, the UK’s largest
electric bus order outside of London,
at its Glasgow Caledonia depot, which
is also the UK’s largest electric charging
hub.While Scotland has a much smaller
fleet than England, ScotZEB has been
praised as a faster and more efficient
application process than ZEBRA, with
less bureaucracy but arguably less
scrutiny. As of October 2022, Scotland
had 273 ZE buses in service.The Welsh
Government has awarded almost £28m
(€32m) in ad hoc ZE bus grant funding
to local authorities over the last three
years. With the aim of achieving a 50%
ZE fleet by 2028, Welsh Government
says that fleet transition plans
including funding are near completion.
Wales has 68 ZE buses in service.
In Northern Ireland, £88m (€99.5m)
investment was announced at the end
of October last year for 100 EV buses
and infrastructure, following £98m
(€111m) provided since 2020 for 140
zero emission vehicles. Currently, there
are 83 ZE buses in service in Northern
Ireland.
SUMMING UP PLANS AND GRANTS IN UK
Name Period Supplier Beneficiaries Investment Vehicles (funded and/or
already in operation)
Zero Emission Bus Regional Areas (ZEBRA) 2021-22 DfT 17 local authorities £270m (€305.4m) 1,278 ZE buses funded
Zero Emission Bus Regional Areas (ZEBRA) Expected 2023 DfT To be confirmed £205m (€232m) To be confirmed
City Region Sustainable Transport Settlements 2022-27 DfT eight city regions outside of London £5.7bn (€6.5bn) To be confirmed
Levelling up Fund 2022-25 Department for Levelling Up, Local authorities across England, £4bn (€4.6bn) To be confirmed
HM Treasury, and DfT
Wales, Scotland, and Northern Ireland
Plan for the first All Electric Bus City 2022-25 DfT Midlands Combined Authority £50m up to 300 e-buses funded
for the city of Coventry
Bus Service Operators Grant (BSOG) 2022 onwards DfT Operators £0.22 (€0.25) per km To be confirmed
ZE bus incentive
ScotZEB Challenge Fund Phase 1 2021 Scottish government 9 PTOs and local authorities £62m (€70m) 276 ZE buses and
infrastructure funded
ScotZEB Challenge Fund Phase 2 Expected 2023 Scottish government To be confirmed £58m (€66m) To be confirmed
Bus Service Support Grant 2020-22 with further Welsh government Welsh local authorities £28m (€32m) 68 e-buses
plans expected 2023
in operation
Ad hoc capital grant funding 2020-21 North Irish government Translink £98m (€111m) 140 ZE buses funded
(83 in operation)
Ad hoc capital grant funding 2022 North Irish government Translink £88m (€99.5m) 100 ZE buses funded
Source: elaboration Sustainable Bus - Alex Byles
ks. Greater Manchester, for example, has
allocated £115m (€130m) to its ZE bus
programme with £45m (€51m) committed
to deliver 100 electric buses. Meanwhile,
the Levelling up Fund is a £4bn (€4.6bn)
government-funded programme to invest in
regeneration, culture, and transport schemes
across the UK. Unsuccessful in its ZEBRA
bid for 73 electric vehicles, Transport North
East is applying via this alternative with
the aim of delivering 52 electric buses. In
a separate scheme, DfT also awarded £50m
(€56.3m) to the West Midlands Combined
Authority to support the Coventry All Electric
Bus City and the introduction of up to
300 electric buses.
As well as grants, the DfT is also offering
“We haven’t yet
seen evidence of the
effectiveness of the
22p per km and while it
accumulates over a 15-
year vehicle life, it doesn’t
remove the upfront capital
cost” says Daniel Hayes,
programme manager at
Zemo Partnership. “The
problem is also that the
existing Bus Service
Operators’ Grant (BSOG)
of 35p per litre of diesel
counteracts the ZE
incentive”.
operators an incentive of £0.22 (€0.25)
per kilometre for accredited zero emissions
vehicles.
“We haven’t yet seen evidence of the effectiveness
of the 22p per km, and while it accumulates
over a 15-year vehicle life, it doesn’t
remove the upfront capital cost,” says Daniel
Hayes. “The problem, however, is that
the existing Bus Service Operators’ Grant
(BSOG) of 35p per litre of diesel counteracts
the ZE incentive. Operators need this
funding but it’s acting against the incentive”.
Funding London’s ZE fleet
Transport for London’s (TfL) franchised service
now includes over 875 ZE buses. After
an initial introductory phase of six electric
As ZEBRA has comprised
rounds of application and
competition for funding
at intervals, this has also
created uncertainty and
a stop-start procurement
approach. Tim Griffen,
project officer at Zemo
Partnership, says: “Operators
and local authorities
work hard to compete for a
share of government funding
announced at intervals,
then there’s a delay before
the money is actually
received, then there’s a
rush to the manufacturer.
And, if the application is
unsuccessful, they may
not receive any funding”.
vehicles, TfL received £3.5m (€3.9m) in
early 2019 via the Green Bus Fund, comprising
44% DfT funding with 56% input
from TfL itself. TfL says that by improving
costs per bus, the budget was able to stretch
to 126 vehicles. Over the next decade, TfL
also plans to significantly expand its outer
London bus network. Currently, the fleet has
around 9,300 vehicles with a fully ZE fleet
target date of 2034.
Since 2021, all new buses entering TfL’s
fleet have been ZE, with all funding after
2019 coming from TfL’s network costs.
Fares are the main contributor, typically
reaching around £1.5bn (€1.6bn) per year
since 2015, partially recovering after Covid
to £1.2bn (€1.4bn) last year. Income also
derives from road network compliance charges
such as London’s Congestion Charge, as
well as central and local government grants.
More passengers needed
Government grants and incentives are important
contributors towards the UK’s ZE
transition. However, a self-sustaining approach
with a modal shift in consumer behaviour
is important to achieve environmental
and economic sustainability.
“To be in a position to deliver on net zero
goals, the focus must be on increasing passenger
numbers travelling by bus,” says Alison
Edwards. “This will deliver a sustainable
model to enable operators to continue
reinvesting and deliver a network that is
continuously improving”. Alex Byles
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