Volvo Group in association with the Swedish Transport Administration will start conducting trials to study the potential for building electric roads.
The electric roads will enable the city buses to be charged from electricity in the road when the bus is in operation, resulting in eco-friendly and more climate-smart public transport.
As part of the move, which is part of Volvo's plan to develop sustainable transport solutions, the company will build a 300m to 500m electric road for test operations in central Gothenburg during 2015.
Volvo Group Corporate Sustainability and Public Affairs executive vice president Niklas Gustavsson said vehicles capable of being charged directly from the road during operation could become the next step in the development towards reduced environmental impact.
"Close cooperation between society and industry is needed for such a development to be possible and we look forward to investigating the possibilities together with the City of Gothenburg," v added.
Under the project, Volvo Group will also develop a detailed proposal within the framework of innovation procurement from the Swedish Transport Administration.
The proposal will include construction of a road section equipped with wireless charge technology and also developing vehicles that can automatically charge their batteries using such a road section.
The electric road will use technology called inductive charging to charge vehicle batteries wirelessly during operation by transferring energy from the electricity grid to a vehicle.