The aim of this two part paper is to present the results of extensive simulation and analytical analysis of the energy conversion efficiency in parallel hybrid powertrains. The simulation approach is based on an accurate and fast forward facing simulation model of a parallel hybrid powertrain and a conventional internal combustion engine powertrain. The model of the ICE is based on a verified dynamic model that provides sufficiently small time steps to model adequately the dynamics of electric systems during transient test cycles. Models of the electrical devices enable computation of the instantaneous energy consumption, production and storage as well as computation of the instantaneous energy losses and component efficiencies. Moreover, the paper offers an analytical approach based on the energy balance in order to analyze and predict the energy conversion efficiency of hybrid powertrains. The analysis covers a broad range of parallel hybrid powertrain configurations from mild to full hybrids. Combined simulation and analytical analysis enables deep insight into the energy conversion phenomena in hybrid powertrains. The paper reveals the conditions and influences that lead to improved fuel economy of hybrid powertrains with the emphasis on determining the optimum hybridization ratio. The theoretical background, simulation program and brief analysis of one test cycle are presented in Part 1, whereas the extensive analysis and parametric study is presented in the companion paper, Part 2. (C) 2007 Elsevier Ltd. All rights reserved.