China's E-Bus Fleet Depresses Global Oil Demand - China's E-Bus Fleet Dents Global Oil Demand

Published on: March 26, 2019 / Updated on: March 26, 2019 – Author: Konrad Wolfenstein

In the search for an electrification project that truly reduces global oil demand, one must look beyond Tesla and consider China's vast fleet of electric buses. Nearly 400,000 buses were deployed to Chinese roads in a coordinated effort by the Chinese government, and the result is significant. When it comes to reducing global oil demand, the amount of oil saved by switching from diesel buses to electric buses far surpasses that saved by diesel light vehicles and even all gasoline vehicles combined. Considering that 99 percent of the world's electric bus fleet is Chinese, a large portion of the oil saved globally by electric vehicles is solely a result of Chinese buses.

Even though the Chinese fleet saves oil, the electricity it uses isn't necessarily CO2-free. In 2017, 70 percent of China's electricity was generated from coal and gas , while 26 percent came from renewable sources. While this share of renewable energy comparable to that of the UK , countries like Austria, which also operates a large fleet of electric buses built to European standards , generate around 70 percent of its electricity from renewable sources .

While China is the undisputed global market leader in electric buses, other countries are also investing heavily in them. India has ordered 1,000 electric buses , which are scheduled for delivery by 2019, and Russia plans to introduce 600 electric buses to the streets of Moscow .

Looking for an electrification project that really dents global oil demand, one has to look past Tesla and towards China's massive fleet of electric buses. Close to 400,000 have been introduced to Chinese streets in a coordinated effort by the Chinese government and the result is big. When it comes to global oil demand displacement, the amount of oil that becomes obsolete through diesel bus to e-bus conversion is far bigger than the displacement amount for diesel light vehicles and even all gasoline vehicles combined. Considering that 99 percent of the global electric bus fleet is Chinese, a major part of oil distributed by electric vehicles globally is just the result of the Chinese buses.

Even though the Chinese fleet saves oil, the electricity they run on is not necessarily carbon-free. In 2017, 70 percent of Chinese electricity was generated from coal and gas . 26 percent came from renewable sources. While that renewables share is comparable to that of the UK , countries like Austria, which also operates a large e-bus fleet for European standards , have been generating electricity from around 70 percent renewable sources.

While China is the uncontested global e-bus leader, other countries are investing heavily in e-buses too. India has ordered 1,000 e-buses to be delivered throughout 2019, and Russia is planning to introduce 600 electric buses to Moscow streets .

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