OTP pushes for EV bus shift, Seeks GCF backing for THB18 billion investment
Transport Ministry accelerates Net Zero efforts by transitioning intercity buses to EVs, totalling 2,801 vehicles, and establishing 350 charging stations.
Under the policy of Prime Minister Paetongtarn Shinawatra, Thailand has announced its commitment to drive climate change policies and actions aimed at achieving carbon neutrality by 2050 and net-zero greenhouse gas (GHG) emissions by 2065, as well as the development of sustainable transport infrastructure.
The Office of Transport and Traffic Policy and Planning (OTP) has pioneered the development of a low-carbon intercity bus system with climate-proof infrastructure in Thailand to address climate change impacts.
To promote and support effective actions to tackle climate change and achieve the country's Nationally Determined Contribution (NDC), a joint meeting was held with relevant agencies.
Electric Intercity Bus Transformation
Panya Chuphanit, Director of OTP, revealed that the Ministry of Transport has developed the concept for a low-carbon intercity bus system, entrusting the Transport Company Limited (TCL) to oversee the procurement of electric-powered intercity buses, with a total of 381 buses planned.
In the initial phase, 54 electric buses will be procured as a pilot project. TCL will need to secure funding for leasing the vehicles. The project involves the replacement of existing intercity buses with electric buses (EVs), which includes:
Up to 381 intercity buses, consisting of 60 minibuses, 321 12-metre buses, and 2,099 vans operating on 219 intercity routes.
Additionally, 350 charging stations will be installed to ensure sufficient coverage and meet the demand for electric intercity buses.
Secure GCF funding to support the project
The transition from internal combustion engine buses to electric buses is expected to reduce greenhouse gas emissions by 267,317.50 tons per year, with a project timeline of 5 years.
This collaboration project aims to seek financial support from the Green Climate Fund (GCF) and various agencies, with a total budget of 18.5 billion baht for implementation.
The project will also support and provide financial assistance to electric vehicle (EV) bus manufacturers and battery producers in addition to the government’s existing support measures.
Panya continued to explain that the Ministry of Transport has not yet received the allocated budget for this project, as it depends on government consideration. The 18.57 billion baht budget is the total allocation for all relevant ministries that need to work together, such as the Ministry of Transport, the Ministry of Energy, the Ministry of Industry, and others.
Transport Company Launches EV Bus Rental Auction
Recently, the TCL has announced the launch of an electronic bidding process (E-Bidding) for the procurement of 54 electric buses, with a budget of approximately 300 million baht and a 5-year rental period.
Atthawit Rakjamroon, Acting Managing Director of TCL, stated that despite issuing the announcement, no private companies showed interest in bidding. This is because most operators believe that the supply of electric buses for rental is limited in the country, and renting electric buses may not be cost-effective compared to purchasing them outright.
He further explained that TCL is preparing to issue a new procurement announcement in the form of a selection process to invite qualified private companies to bid for the project. If no interested bidders come forward, TCL will announce a specific procurement method by the end of this month.
Once a private company is selected through the bidding process, TCL will invite the winning bidder to sign a contract and prepare a plan to deliver 54 electric buses within 6 months, or by June 2025, to be deployed on designated routes.
Service Launch by Late 2025
The plan to procure 54 electric buses aims to offer services on routes of up to 250 kilometres, such as the Bangkok-Pattaya, Bangkok-Hua Hin, Bangkok-Nakhon Ratchasima, and Bangkok-Saraburi routes. The service is expected to launch by the end of 2025.
Additionally, there will be improvements to bus terminal access and integration with public transportation systems to enhance efficiency. This includes upgrading terminal facilities and expanding connections to make it easier for passengers, reduce reliance on private vehicles, and promote sustainable, low-carbon public transport options.
However, there will also be efforts to manage the disposal of used batteries from electric intercity buses efficiently and responsibly to minimize environmental impacts. Furthermore, training and capacity-building programs will be implemented for personnel at all levels and relevant stakeholders. These include:
Organizing training sessions and knowledge transfer, developing skills in maintenance and repairs of both electric buses and related infrastructure, managing emergency situations and promoting awareness campaigns on the benefits of electric buses.
