Accelerating Change: How Chile Became a Global E-Bus Leader

Project summary

Chile is leading a major shift toward zero-emission public transport in Latin America, with Santiago at the center of this transformation. Santiago currently has the largest electric bus fleet outside of China, reflecting its commitment to sustainable urban mobility. By March 2026, 68% of the bus fleet is projected to be electrified, with the total fleet reaching approximately 4,400 buses, thanks to the addition of 1,800 new electric buses that will significantly expand the existing fleet. This initiative is part of a national commitment to decarbonize transport, improving air quality and benefiting nearly 6 million users with measurable reductions in emissions, noise, and fuel consumption.

This transition also includes the development of 29 electroterminals, modernization of service standards with improvements in accessibility and safety, and a significant decrease in the average fleet age. Furthermore, this momentum extends to small and medium-sized cities outside the Metropolitan Region, marking a milestone in sustainable urban mobility across Chile. According to the Long-Term Climate Strategy (ECLP), two key targets guide Chile’s decarbonization of public transport: from 2035 onward, all new public transport vehicles must be zero-emission—a goal that Santiago has already achieved—and by 2040, the entire national public bus fleet is expected to be fully electric.

In Collaboration with:

Tech Specs

What

4,406

e-buses by March 2026
Chargers

29

electroterminals across the metropolitan region
Grid Connection

101.57

Megawatts of total power capacity across electroterminals

Key Info

Operating Cost Savings:

Electric buses demonstrate significant economic advantages, with maintenance costs estimated to be 44% lower than those of diesel buses. Additionally, in terms of energy performance, electric buses are at least 65% cheaper per kilometer traveled, highlighting their superior cost-efficiency in daily operations.
Daily Driving Distance:

Buses average a daily route length ranging from 120 to 300 km (CIGRE 2024), which is fully covered by their battery capacity. They are primarily charged overnight at depots, with additional opportunistic charging occurring during off-peak hours at the depot when possible.
Charging Depots:

Each electroterminal is equipped to support high-duty-cycle operations, allowing full recharges predominantly within overnight windows. The total power capacity of these terminals ranges from 960 kW to 8,933 kW, and the electric fleets they serve vary between 22 and 206 buses.
Environmental Impact:

Electric buses have historically achieved a reduction of 62% in PM₂.₅ emissions and 28% in CO₂-eq emissions per bus compared to their diesel counterparts, along with a 44% decrease in noise pollution along one of Santiago’s main corridors (Alameda), contributing to a significant improvement in urban environmental quality.
Rapid Expansion:

In the coming months, the number of electroterminals in Greater Santiago is expected to increase by 93%, growing from 29 to 56 facilities.

Timeline

2009

Foundational Legal Framework Established – Chile first restructured its entire public transport system, replacing an informal model with a centralized one. This enabled the introduction of national subsidies, securing long-term funding and paving the way for private investment and the transition to electric fleets.
2015

Critical Legal Update for Assets – A key legal amendment categorized buses and terminals as “Concession-Affected Assets.” This ensures that essential infrastructure and vehicles can be seamlessly transferred between operators, guaranteeing continuous service and protecting long-term investments.
2016

Introduction of “Provision Contracts” – The system introduced “Provision Contracts,” separating the ownership of assets (buses, charging infrastructure) from their operation. This model, combined with direct payments from the system’s financial administrator to asset financiers, significantly reduced investment risks and encouraged the adoption of clean energy technologies.
2017

Strategic Infrastructure Acquisition Begins – The Ministry of Transport and Telecommunications (MTT) began expropriating 12 bus terminals to facilitate access to infrastructure for new concessionaires, removing barriers to entry.

Timeline

2017-2018

First Electric Buses and Charging Infrastructure – The first two electric buses began operation in 2017, followed by 100 more in 2018. Two dedicated electro-terminals with smart charging infrastructure were also established.
2019

System Renamed and Major Fleet Incorporations – The public transport system was rebranded as “Red Movilidad” (Mobility Network). This period saw the incorporation of 389 new electric buses.
2020-2021

New Bidding Model and Strategic Alliances for Terminals – A new bidding model was introduced, separating the procurement of buses from the operation and management of bus services. This allowed for the tendering of bus supply in 2020 (including 961 electric buses) and the concession of routes in 2021. A strategic alliance was formed with Desarrollo País (a state-owned infrastructure fund) for the acquisition and leasing of terminals, further simplifying infrastructure access for operators.
2022-2023

Massive Electric Bus Rollout and Terminal Construction – Between December 2022 and May 2023, a rapid implementation phase saw the integration of 1,600 new buses and the construction of 28 electroterminals. This demonstrated the system’s capacity to adapt to new technologies at scale.
2023

Refined Bidding Process (Current Model) – Learning from prior experiences, the 2023 bidding process (and subsequent 2025 tenders) now jointly awards operation and fleet provision, with a mandatory requirement for 100% of new vehicles to be electric. This streamlined approach enhances efficiency and fosters synergies between operators and manufacturers.
2025

Electrified Majority Fleet – The project anticipates that by March 2026, 65% of Santiago’s public transport will be electric, with the incorporation of 1,800 new electric buses, further expanding the fleet and consolidating Santiago’s leadership in zero-emission transport.

Who Was Involved

Directorio de Transporte Público Metropolitano (DTPM): Responsible for the metropolitan public transport system. They evaluate the performance of buses with different technologies and design the tenders, ensuring that the system operates with the frequency and quality required to meet user needs.
Ministry of Transport and Telecommunications (MTT): Leads, regulates, and designs public transport policies, including the integration of electric fleets and infrastructure. They have broad powers to intervene and regulate public transport at a national level.
Administrador Financiero del Transantiago (AFT): Manages the system’s financial resources, processes payments to operators, and secures investments in electric buses. The system’s resources managed by AFT form an autonomous and independent patrimony.
Desarrollo País: Entered into a strategic alliance with the MTT in 2021. They acquire and manage bus terminals, facilitating access to charging infrastructure for operators.
Bus importers/consortias: Supply the electric buses and related technologies to the system. Their experience and energy efficiency are evaluated in the bidding processes.
Transport Operators: Private companies that provide public transport services, operating electric bus fleets and managing associated infrastructure. They sign contractual instruments with the MTT to regulate critical aspects of services.
Energy Providers (Distributors/Generators): Supply the electricity required for bus charging, often through competitive contracts. The “free client” category allows operators to optimize energy costs and adopt sustainable solutions.
Comptroller General of the Republic: Controls and approves the transfer of subsidy resources through a decree, and also reviews the tender bases before they are published.

Lessons Learned

Stable Financial Framework is Essential:

A national public transport subsidy and direct payment mechanisms for bus financing (like “Cuota de Flota”) were fundamental. This created an attractive business model, reduced entry barriers, and ensured financial security for electric fleet investments.
Strategic Separation of Assets and Operations:

“Provision contracts” separating asset ownership (buses, terminals) from service operation proved vital. This reduced capital requirements for operators, fostered competition, and optimized costs. Categorizing assets as “Concession-Affected” ensures service continuity by facilitating transfers between operators.
Regulatory Adaptability and Flexibility:

The Ministry of Transport’s (MTT) ability to adapt regulations and contracting models was key. While initial bidding models faced challenges, lessons learned led to optimized, unified tenders (2023, 2025) requiring 100% electric buses. This improved efficiency and fostered synergies.
Active State Role in Infrastructure & Site Feasibility:

The MTT’s initiative to acquire and manage terminals (through expropriation and alliance with Desarrollo País) significantly eased infrastructure access for new concessionaires, proving crucial for system expansion and decarbonization. It also highlighted the importance of energy feasibility and adequate power supply at electroterminal locations to support the growing electric fleet, ensuring that infrastructure development proceeds hand-in-hand with fleet expansion.
Public-Private Collaboration and Energy Competitiveness:

Modernizing electricity laws allowed operators to negotiate directly with energy providers, optimizing energy costs and encouraging electric vehicle adoption through competitive and flexible contracts.

Project summary

In Collaboration with:

Tech Specs

What

Chargers

Grid Connection

Key Info

Operating Cost Savings:

Daily Driving Distance:

Charging Depots:

Environmental Impact:

Rapid Expansion:

Timeline

2009

2015

2016

2017

Timeline

2017-2018

2019

2020-2021

2022-2023

2023

2025

Who Was Involved

Lessons Learned

Stable Financial Framework is Essential:

Strategic Separation of Assets and Operations:

Regulatory Adaptability and Flexibility:

Active State Role in Infrastructure & Site Feasibility:

Public-Private Collaboration and Energy Competitiveness:

Further Reading

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