UNIVERSITY OF MICHIGAN · UNITED STATES
Master's Projects: Financing the Transition to an All-Electric Bus Fleet
Master's · Taught in en
At a glance
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Duration
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IELTS
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Tuition / yr
en
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Master's
Level
- 2035Target year for fleet electrification
- Project Finance ModelProposed financing approach
- Carbon Credits & Excess ElectricityRevenue generation streams
- Cost-Benefit, NPV, Payback Period, IRRKey financial metrics analyzed
This project focuses on developing a financial model for the University of Michigan's transition to an all-electric transit bus fleet, known as Magic Blue Bus. The university aims to achieve this by 2035 as part of its broader carbon neutrality goals. The transition requires significant upfront investment in new electric buses and charging infrastructure. The current financing relies on grants, but a more sustainable model is needed. The proposed Project Finance Model involves the university acting as a service off-taker through a lease agreement with a Special Purpose Vehicle (SPV). This model leverages debt from bond issuance and generates revenue from selling carbon credits and excess electricity stored in the bus batteries. The project aims to analyze the cost-effectiveness of this model by calculating metrics such as Cost-Benefit analysis, Net Present Value (NPV), Payback Period, and Internal Rate of Return. A sensitivity test will also be conducted to identify optimal investor interest rates.
Frequently asked questions
- What is the main focus of this Master's project?
- This project focuses on developing a financial model for the University of Michigan's transition to an all-electric transit bus fleet, aiming for completion by 2035.
- How will the electric bus fleet transition be financed?
- The proposed model involves the university acting as a service off-taker through a lease agreement with a Special Purpose Vehicle (SPV), leveraging debt from bond issuance and generating revenue from carbon credits and excess electricity.
- What are the projected tuition and fees for international students?
- For the 2025-26 academic year, non-resident per-credit hour rates range from $3,775 (1 credit hour, full term) to $30,685 (9+ credit hours, full term), plus mandatory fees of $241.19 per term. Tuition and fees are subject to change.
- What is the target year for the fleet electrification?
- The university aims to achieve fleet electrification by 2035.
- What revenue streams are being considered for this financing model?
- Revenue streams include the sale of carbon credits and excess electricity stored in the bus batteries.
Fees
Tuition (international)Tuition and fees vary based on credit hours. For the 2025-26 academic year, non-resident per-credit hour rates range from $3,775 (1 credit hour, full term) to $30,685 (9+ credit hours, full term). Mandatory fees are $241.19 per term.
Tuition (home)Tuition and fees vary based on credit hours. For the 2025-26 academic year, Michigan resident per-credit hour rates range from $2,055 (1 credit hour, full term) to $15,204 (9+ credit hours, full term). Mandatory fees are $241.19 per term.
LivingInformation on estimated living costs is not provided for this specific program. Refer to the Office of Financial Aid for a detailed description of the full cost of attendance.
Tuition and fees are subject to change. Full-time enrollment is considered 9+ credit hours for full terms and 5+ credit hours for half terms. Mandatory fees apply. Specific figures for the Spring/Summer terms are also available and differ from Fall/Winter terms.
Frequently asked questions
What is the main focus of this Master's project?
+
This project focuses on developing a financial model for the University of Michigan's transition to an all-electric transit bus fleet, aiming for completion by 2035.
How will the electric bus fleet transition be financed?
+
The proposed model involves the university acting as a service off-taker through a lease agreement with a Special Purpose Vehicle (SPV), leveraging debt from bond issuance and generating revenue from carbon credits and excess electricity.
What are the projected tuition and fees for international students?
+
For the 2025-26 academic year, non-resident per-credit hour rates range from $3,775 (1 credit hour, full term) to $30,685 (9+ credit hours, full term), plus mandatory fees of $241.19 per term. Tuition and fees are subject to change.
What is the target year for the fleet electrification?
+
The university aims to achieve fleet electrification by 2035.
What revenue streams are being considered for this financing model?
+
Revenue streams include the sale of carbon credits and excess electricity stored in the bus batteries.