A Sustainable Asset Valuation (SAVi) Assessment of Bus Fleet Electrification in Ulaanbaatar, Mongolia
Bus fleet electrification in Ulaanbaatar, Mongolia, will generate significant economic benefits through reduced fuel consumption and lower maintenance costs, alongside environmental benefits from decreased air and noise pollution and reduced carbon dioxide emissions.
Key Findings
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Fully electrifying Ulaanbaatar's bus fleet delivers USD 26.3 million more in savings and benefits than it costs over 25 years.
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Benefits increase significantly if electrification is paired with fewer cars on the road. If 5% of private car users switch to public buses, benefits rise to USD 400.5 million. A 10% switch brings this figure to USD 774.8 million, returning USD 3.63 for every USD 1 invested.
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The greatest impact of the bus fleet electrification is the avoided cost of fuel use, valued at a cumulative, discounted USD 229.6 million. The lower maintenance costs associated with electric buses make up the second biggest impact, valued at USD 45.7 million.
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Beyond fuel and maintenance savings, electric buses reduce air pollution, lower noise levels for residents, and cut carbon emissions, delivering an additional USD 38.6 million in environmental benefits.
Ulaanbaatar, the capital and economic centre of Mongolia, is home to approximately 1.72 million people, accounting for nearly half of the country’s population. Rapid urbanization, growing motorization, and aging transport infrastructure have led to severe traffic congestion and increased air pollution, negatively affecting public health and economic productivity.
The city has adopted long-term strategies to reduce congestion, modernize public transport, and improve urban mobility, while Mongolia’s Vision 2050 promotes sustainable urban development through green and smart technologies. In addition, the government is encouraging the transition to e-mobility through the development of technical standards for electric vehicles and charging infrastructure, and the deployment of electric public transport. Current national targets aim for 70% of Ulaanbaatar’s public bus fleet to be electric by 2050.
This SAVi assessment evaluates the long-term economic, social, and environmental impacts of the full electrification of Ulaanbaatar’s bus fleet by 2050. The transition would require expanding the current fleet of 90 electric buses to all 1,303 buses operating in the city. The assessment also considers the effects of a modal shift from private vehicles to public bus transport. The SAVi assessment demonstrates that bus fleet electrification could generate significant benefits for Ulaanbaatar, including reduced air pollution and carbon dioxide emissions, lower fuel and maintenance costs, improved public health and well-being, and enhanced sustainability of the city’s transport system.
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