# Regenerative braking and motion recovery: Economics and contracts

Nearly free when built in, costly when bolted on

Source page: https://www.materialinsights.org/energy/e_regen_braking/rc-econ/

What this tab covers Economics and commercial structures: levelised cost of the recovered energy against the fuel it avoids, host-site risk, and service models such as heat-as-a-service.

Where the drive is already bidirectional the extra cost is small and paybacks are short. Stand-alone retrofits depend on duty and on fuel or power prices.

#### Levelised cost of heat or avoided cost
Mixed

For a diesel RTG with storage, the study estimated about 78 MWh a year of recoverable energy per crane. That would save about 32,600 litres of fuel and about GBP 19,600 a year. GKN claimed a 3 to 4 year payback for Gyrodrive on buses. In the Otis example, ReGen saves about 2,933 kWh a year (calculated). At the USD 0.10 per kWh price implied by the example, that is only about USD 293 a year (calculated), so lift regeneration pays mainly in busy, tall buildings.^[4](https://www.otis.com/documents/256045/6552829/Regen_Drive_UK.pdf)^[5](https://e-space.mmu.ac.uk/620872/9/Manuscript.word.pdf)^[7](https://www.transportengineer.org.uk/content/news/gyrodrive-hybrid-technology-first-to-make-economic-sense-to-bus-operators)
 RTG fuel saving with storage about 32,600 L/y, about GBP 19,600/y per crane^[5](https://e-space.mmu.ac.uk/620872/9/Manuscript.word.pdf) Gyrodrive payback 3-4 years (company claim)^[7](https://www.transportengineer.org.uk/content/news/gyrodrive-hybrid-technology-first-to-make-economic-sense-to-bus-operators) Otis example saving about 2,933 kWh/y, about USD 293/y (calculated)^[4](https://www.otis.com/documents/256045/6552829/Regen_Drive_UK.pdf)

#### Host factory credit risk
Favourable

Hosts are transit agencies, port operators, bus companies and building owners. Their assets move with them, and they rarely close the way a single factory does. The main stranding risk is technical. Diesel-hybrid add-ons such as flywheels or RTG storage lose their purpose when the fleet switches to battery-electric, which has regeneration built in.^[1](https://www.energy.gov/node/4844725)

#### Heat-as-a-service and ESCO models
Mixed

Most regeneration is bought as part of the vehicle or drive. Reversible substations are a utility-style infrastructure play. Alstom has sold 136 Hesop units and 110 are in service, in London, Panama, Riyadh, Hamburg, Dubai, Sydney and Hanover. This pass found no sourced shared-savings contracts for regenerative braking.^[3](https://www.alstom.com/press-releases-news/2025/6/capturing-wasted-energy-our-cities)
 Hesop units sold / in service 136 / 110 (2025)^[3](https://www.alstom.com/press-releases-news/2025/6/capturing-wasted-energy-our-cities)

#### Sources

1. [FOTW #1360: A typical EV is 87%-91% efficient compared to 30% for a conventional gasoline vehicle](https://www.energy.gov/node/4844725) US Department of Energy, Vehicle Technologies Office, 2024
2. [Capturing wasted energy in our cities (Hesop reversible substations) (company press release)](https://www.alstom.com/press-releases-news/2025/6/capturing-wasted-energy-our-cities) Alstom, 2025
3. [ReGen drive (product brochure, UK) (vendor claims)](https://www.otis.com/documents/256045/6552829/Regen_Drive_UK.pdf) Otis
4. [Analysis of energy usage for RTG cranes (Papaioannou et al.), Energy 125, accepted manuscript](https://e-space.mmu.ac.uk/620872/9/Manuscript.word.pdf) Elsevier (repository copy, Manchester Metropolitan University), 2017
5. [Gyrodrive hybrid technology first to make economic sense to bus operators (company claims as reported)](https://www.transportengineer.org.uk/content/news/gyrodrive-hybrid-technology-first-to-make-economic-sense-to-bus-operators) Transport Engineer

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_regen_braking/index.md)
- [Overview](https://www.materialinsights.org/energy/e_regen_braking/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_regen_braking/correlation/index.md)
- [Science and thermodynamics](https://www.materialinsights.org/energy/e_regen_braking/rc-sci/index.md)
- [Engineering and integration](https://www.materialinsights.org/energy/e_regen_braking/rc-eng/index.md)
- [Impact and additionality](https://www.materialinsights.org/energy/e_regen_braking/rc-impact/index.md)
- [What to track](https://www.materialinsights.org/energy/e_regen_braking/tracking/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_regen_braking/links/index.md)