SPP TENDER MODEL. Electric buses. Joint Procurement of 19 urban electric buses in Piedmont. Contract: 19 electric buses (length 12m)
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1 SPP TENDER MODEL Electric buses Jint Prcurement f 19 urban electric buses in Piedmnt Purchasing bdy: GTT Grupp Trinese Trasprti S.p.A. Cntract: 19 electric buses (length 12m) Awarded: September 2016 Savings: 769 tns f CO 2 emissins saved per year Primary Energy saving f 1.62 GWh/yr Financial saving f 50,000 ver 10 years (emissins cst including) SUMMARY Supply cntract f 19 urban buses, 2-axle, pure electric drive, length 12m, M3 categry, class 1, lw platfrm, air-cnditined 10 years full service maintenance (including batteries and excluding tyres). Tender awarded fr 10,064, (excluding VAT ): 7,980, fr buses and 2,084,300 fr full service, t BYD EUROPE B.V (withut rapid charging statins) Published: December 2016
2 Prcurement Apprach This tender derives frm a prgramme launched by the Piedmnt Regin t prmte the intrductin f electric buses int reginal transprt peratrs fleets. The Reginal gvernment wuld fund 90% f the bus purchasing cst, based n funding frm the Natinal Prgramme fr the imprvement f air quality thrugh the mdernisatin f lcal public transprt. Electric buses market is relatively new and the supply apprach fllwed 5 steps: 1) The Piedmnt Regin requested and assessed prject prpsals frm public transprt cmpanies in the regin, asking them t define the prpsed number f buses, the rute and the charging infrastructure (April 2014) 2) A general market survey abut pssible suppliers wrldwide with infrmatin published in newspapers and specialized magazines (April 2015) 3) Pre-qualificatin: ntice published n the fficial website f GTT and n OJEU 1 in rder t cllect suppliers requests (September 2015) 4) Selectin f suppliers wh culd meet the technical and financial requirements (Octber 2015) 5) Request fr prpsals sent t the selected suppliers (February 2016) The tender was awarded n the basis f the mst ecnmically advantageus ffer (September 2016). Jint prcurement The Piedmnt Regin, financing 90% f the buses purchasing cst, identified G.T.T. S.p.A. as the apprpriate purchasing bdy (because f its experience with electric urban mini-buses since 2003) t act n behalf f different public transprt lcal cmpanies in the Piedmnt Regin. The Jint Prcurement apprach was applied fr different reasns: t reduce administrative csts fr the rganisatins wh jin t manage the Piedmnt Regin budget in a mre efficient and cherent way t ptimise and t standardise the buses used in the Piedmnt Regin t btain a better price After the tender was awarded, each public transprt cmpany is independently t sign a supply cntract with BYD EUROPE B.V. Needs analysis 1 OJEU = Official Jurnal f the Eurpean Unin, where all tenders abve a certain value must be published
3 The Piedmnt Regin established a Cmmissin in rder t assess the prject prpsals f public transprt cmpanies in the regin, selecting them based n the fllwing evaluatin criteria: 1) Envirnmental criterin: number f times the PM10 daily limit value (50 ug / m3) was exceeded in the area served in 2010, 2011 and 2012; 2) Technical criterin: prpsal assessed in terms f bus size and maximum number f transprted passengers, as well as the buses range, the length f the rutes and the ples f attractin served. Market engagement In rder t arrange technical specificatins, GTT carried ut a market survey t identify the types f electric buses available. In the pre-qualificatin phase 10 wrldwide suppliers presented an ffer; nly 6 f these were selected because they met the defined technical and financial requirements. Life Cycle Csting Within the award phase f the tender, estimated maintenance csts fr the vehicles ffered were assessed nt as part f the ecnmic assessment, but as part f the maintenance and technical assistance assessment (see pints scheme belw). Tenderers were asked t prvide figures n preventive and crrective maintenance, and spare parts, based n a 15 year lifespan, averaging 50,000 km/yr, and labur csts f 35 /hr. Tender specificatins and Verificatin TECHNICAL SPECIFICATIONS 2-axle buses, pure electric drive, length 12 m, M3 categry, class 1, lw platfrm, aircnditined BATTERIES: The system must guarantee, under the cnditins f the varius rute prfiles indicated, a range withut recharging f at least 170 km. The number f batteries is chsen accrding t the missin prfile, rutes, stps and rad situatin. CHARGING STATIONS: If the minimum daily range requirements are nt met, rapid charging statins must be prvided at the dept. Installatin is nt necessary. FULL SERVICE MAINTENANCE: duratin 10 years (the service als includes the tractin
4 batteries) AWARD CRITERIA Ecnmic ffer (max 30 pints) Technical ffer (max 62 pints) divided int: Energy cnsumptin (0-5 pints) Cckpit (0-8 pints) Passenger cmpartment (0-10 pints) Perfrmance (0-10 pints) Vehicle quality (0-4 pints) Drive system: Range withut charging, guaranteed lifecycles, battery charger, cmputer system (0-19 pints) Rapid charging statins: charging time and charging type (0-6 pints) Maintenance and technical assistance (including estimated maintenance csts) (max 6 pints) Terms f delivery (max 2 pints) VERIFICATION In the ffer phase, the cmmissin requested a sample vehicle t perfrm a qualitative test. The bidder als had t indicate any differences between the prduct ffered and the sample vehicle. The cnsumptin test was carried ut in the testing n the first vehicle delivered. Fr this test, the SORT cycle mde ( Standardised On-Rad Test Cycles, planned fr diesel-pwered vehicles) was adapted t fit with an electric engine, as a standard test cycle fr electric buses has nt yet been defined. In particular: the vehicle must have batteries charged t 100% and nt use intermediate charging during the test cycle); The test cycle was carried ut with the SORT1 speed / acceleratin prfiles, by measuring the energy cnsumptin with specific instrumentatin The decay curve f the batteries ver time was als requested frm the supplier, cnsidering them at the end f life when they reach a remaining capacity f 80% (standard IEC 62660).
5 Results Envirnmental impacts The electric buses demnstrate a 62% reductin in CO 2 emissins in cmparisn t a cnventinal EURO 6 diesel bus a saving f 769 tnnes f CO 2 per year. This takes int accunt emissins related t electricity generatin. 50% f GTT s electricity derives frm renewable energy surces (RES). The electric bus als emits zer lcal harmful pllutants in particular NO x and particulates (PM) and als nise emissins. Table 2: Envirnmental savings Tender Lifetime (years) Distance (km/year) CO 2 emissins (tnnes/year) Primary Energy cnsumptin (GWh/year) Diesel EURO 3 - Baseline 1,308 4,75 Diesel EURO 6 Cnventinal tender 13 50,000 1,230 4,47 Electric Green tender 461 2,85 Savings - Electric cmpared t cnventinal 769 (62%) 1,62 (36%) CALCULATION BASIS CO 2 emissins factr set at 0, kg/kwh fr electricity Fr primary energy cnsumptin a PEF (Primary Energy Factr) f 2.5 was assumed Mre detailed calculatins are included in the table belw Calculatin made using the tl develped within the GPP 2020 prject ( and refined within the SPP Regins prject. Available n the SPP Regins website.
6 Table 3: NMVOC, NOx and PM 2.5 lcal emissins Technlgy NMVOC (g/km) NO x (g/km) PM2.5 (g/km) Diesel EURO 3 - Baseline Diesel EURO 6 Cnventinal tender Electric Surce: EMEP/EEA air pllutant emissin inventry guidebk 2016 Financial impacts The Piedmnt Regin directly funded 90% f the vehicle purchase price up t a maximum f EUR 400, each. The remainder is paid by the individual clients (transprt peratrs), as well as the full cst f any quick charge statin and the fee fr maintenance services. The vehicles funded under this annuncement are subject t an inalienability restrictin with a maturity f 10 years. Despite the significant cst f acquisitin f an electric bus, the analysis f the life cycle csts (LCC) revealed a savings f abut 50,000 in 10 years (mre than 2,600 per bus) including emissins cst. Life Cycle Csting INNOVATIVE SOLUTION The required bus, as well as meeting the envirnmental standards, must be equipped with high technical standards regarding cmfrt, safety, fuel ecnmy, perfrmance and aircnditining. A cmplete life cycle cst cmparisn was cnducted fllwing the tender by cmparing the winning bus with 2 ther bus mdels. This analysis was perfrmed by Arpa Piemnte by using the calculatr Vehicles Life Cycle Cst (LCC) Calculatr develped by Clean Fleets 2. In this case, it was a cmparisn between: 12m diesel-pwered Eur III bus (current mdel in use) 2 _EN.xlsm
7 12m diesel-pwered Eur VI bus (ptential alternative) 12m electric bus T calculate, the fllwing variables were defined: acquisitin cst peratin csts (bus use, type f fuel, perfrmances, etc.) maintenance csts (including battery replacement likely after 6.5 years) envirnmental csts (emissins), based n the peratinal lifetime csts methdlgy prescribed within the Clean Vehicles Directive (2009/33/EC), which gives a value t emissins f CO2, NOx, particulates (PMs), and NMHC 3 Table 1: LCC analysis results perfrmed by ARPA Piemnte Tender Lifetime (years) Average distance per vehicle in lifetime (km) LCC ( /unit)* Diesel EURO 3 - Baseline 652, Diesel EURO 6 Cnventinal tender , , Electric Green tender 605, *Hypthesis: Diesel price 1,1 /L; electricity price: 0,15 /kwh; electric bus maintenance csts: 11,000 (frm GTT tender); diesel-pwered bus maintenance csts ~+40%; diesel pwered acquisitin cst 220,000 ; electric bus acquisitin cst 420,000 ; amunt f fuel Eur 3: 50 l/100km; amunt f fuel Eur 6: 47 l/100km; amunt f electricity electric bus: 120 kwh/100km; duratin batteries: 6,5 years. 3 fleets.eu/fileadmin/files/dcuments/publicatins/cvd_operatinal_lifetime_cst_methdlgy_- _Clean_Fleets_Factsheet.pdf
8 Diagram 1: Ttal csts fr each mdel at the end f planning hrizn As shwn in the diagram, electric buses, despite a higher acquisitin cst, have lwer fuel, maintenance and envirnmental (due t emissins) csts in the cnsidered planning hrizn (10 years). Results demnstrate that these lwer csts ffset the higher acquisitin cst in the lnger term. Market respnse Sme suppliers were prevented frm bidding due t the strictness f technical criteria n batteries and (in sme cases) charging statins. In the final assessment, the nly valid ffer presented was the winning ne (BYD), which shws the still limited availability f electric buses with high technlgical standards n the Italian and Eurpean market. Despite this, the market fr electric buses is evlving. In 2017 GTT will publish tw new calls fr electric buses - 5 6,5m buses, and 12 e 6.5 9m buses). Lessns learned and future challenges Lessns learned The price f E-buses is still very high, mainly because f the cst f batteries whse duratin is nt yet sufficiently prven. The mst apprpriate type f electric bus depends n the type f service t be perfrmed (rute length and placement f depts), n financial availability (funding fr buses and/r f charging statin), n market availability and n land mrphlgy.
9 In the future, fast charging shuld be a requirement fr the batteries. Hwever this will nly be pssible when a sufficient number f electric buses are perating in the same area in rder t ptimize their use. The technical requirements and vehicle characteristics were set very high particularly battery range, charging statins, and full service maintenance and fr the majrity f suppliers the ecnmic csts f meeting these requirements were t high. It was als required that all buses were the same despite different rute prfiles. In the future a better cmprmise shuld be fund in terms f: Price and range f the buses (accrding t the specific rute prfiles); Charging statin cst (and interface standardisatin t enable use fr different types f vehicles); Pwer available fr quick charging statin (physical limit f the pwer distributin netwrk); Ptential financing fr the charging infrastructure, and ptentially servicing, as well as the buses In the future it wuld be better t allw transprt cmpanies mre freedm t select bus type/design accrding t the specific usage prfile, rather than ensure interchangeability acrss the regin. CONTACT Davide Vincenz SASIA Sasia.D@gtt.t.it GTT S.p.A. Crs F. Turati 19/ Trin (TO)
10 Annex 1 - Calculatin f envirnmental savings Calculatins made using the tl develped within the GPP 2020 prject ( and refined within the SPP Regins prject. Available n the SPP Regins website. LCC Calculatr and Emissin savings Calculatr
11
12 Operatinal Lifetime Csts are calculated using values frm: Electric bus Maintenance cst (+40%) are suppsed frm:
13 Abut SPP Regins SPP Regins is prmting the creatin and expansin f 7 Eurpean reginal netwrks f municipalities wrking tgether n sustainable public prcurement (SPP) and public prcurement f innvatin (PPI). The reginal netwrks are cllabrating directly n tendering fr ec-innvative slutins, whilst building capacities and transferring skills and knwledge thrugh their SPP and PPI activities. The 42 tenders within the prject will achieve 54.3 GWH/year primary energy savings and trigger 45 GWh/year renewable energy. SPP REGIONS PARTNERS This prject has received funding frm the Eurpean Unin's Hrizn 2020 research and innvatin prgramme under grant agreement N The sle respnsibility fr any errr r missins lies with the editr. The cntent des nt necessarily reflect the pinin f the Eurpean Cmmissin. The Eurpean Cmmissin is als nt respnsible fr any use that may be made f the infrmatin cntained herein.
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