An essential fleet electrification guide

A new resource has been launched which offers step-by-step guidance into successful fleet electrification, demonstrating value for money and efficiency savings, and insights into overcoming current barriers to adoption.

For fleet operators considering a move to electric vehicles, a new resource has been published which outlines the steps involved, from building a business case to all elements of charging, demonstrating value for money and efficiency savings, and insights into overcoming current barriers to adoption.

Titled “Electrifying the fleet. A practical resource for fleet managers”, the resource was developed by the REA’s Association for Renewable Energy and Clean Technology and the Energy Saving Trust.

The guide starts by setting the context for fleet electrification, by examining the types of fleets and the challenges they may face, from end-to-end logistics, to last mile deliveries and transport authority fleets. It sums up the current legislated targets and vehicle sales for decarbonisation, including what grants are available.

One of the key sections of the report focuses on the extensive savings fleet managers can expect from electrifying their fleets. The resource reveals that they can expect to save around £1,500 annually per light commercial vehicle (LCV) driving 15,000 miles a year if charged at the depot or home.

For rigid HGVs driving the same distance, the savings could be approximately £3,500 annually. These significant cost savings are attributed to the fact that electric vehicles (EVs) only require 25-30 per cent of the energy that a diesel equivalent would need to deliver the same performance, highlighting the substantial efficiency gains from electrification.

Depot electrification

The resource highlights the key considerations in electrifying a depot. This includes fleet analysis, saying that a phased transition is the most common approach to fleet electrification. This allows for a controlled deployment of electric vehicles  whilst also understanding the impact of this transition on fleet operations.

Analysis should be undertaken to understand which routes/drivers are the easiest to electrify, to help decide which vehicles will be transitioned first, as well as defining an  overall fleet electrification timeline. most common approach to fleet electrification. This allows for a controlled deployment of electric vehicles whilst also understanding the impact of this transition on fleet operations. Analysis should be undertaken to understand which routes/drivers are the easiest to electrify, to help decide which vehicles will be transitioned first, as well as defining an overall fleet electrification timeline.

Once a roadmap has been defined for electrification, it is important to understand how charging infrastructure can be rolled out. This process involves defining charging requirements at a site, understanding the impact of charging on local energy infrastructure and implementing energy management strategies. It advises that future-proofed charging solutions are critical to ensure efficient use of resources and investment.

Whilst the electrification journey of a fleet can be complex, it is important to minimise unnecessary complexity wherever possible. In this regard, integrating charging solutions into your existing fleet management systems plays a critical role in ensuring a more seamless fleet transition.    The report says that grid connections are also often misattributed as a key barrier to EV adoption. However, fleet managers should think carefully about the charging speed required, charging type (AC or DC), opportunities for smart charging and scheduled charging to reduce the need for grid reinforcement.

An electrified fleet provides an opportunity to be a flexible energy resource. You can therefore use an aggregator, or flexibility service provider, to take advantage of your resource and monetise flexibility from your fleet. Aggregators can provide the expertise to assist you to participate in the balancing market as they negotiate with electricity producers. They work with businesses to maximise the flexibility you can offer to the grid and manage your participation.

An aggregator can also pool together capacity from many organisations to enable even small businesses to participate.

You can also engage in Demand Side Response (DSR) services. DSR is changing consumption of electricity, in a way that is beneficial to the electricity system. For example, charging EVs during times of low demand. In return, you can receive strong financial incentives.

Building a business case

To build a business case, fleet managers need to understand their organisations’ ESG targets, including Scope 1 emissions; these include the burning of fuel from fleet vehicles. The adoption of electric vehicles will significantly lower Scope 1 emissions of the company as a whole, as EVs do not have any Scope 1 emissions and will also improve air quality in their community.

Fleet managers will also be interested as part of the wider business in reducing Scope 2 emissions, which includes the energy purchased to power an electric vehicle, office, and so on. Fleet managers will be able to reduce Scope 2 emissions by finding tariffs that offer renewable energy for businesses. This may also offer lower off peak tariffs for overnight charging.

The resource emphasises the benefits of smart charging, which can significantly reduce costs by enabling fleet managers to schedule charging during off-peak times when electricity prices are lower. Smart charging also reduces the need for costly grid upgrades and improves overall efficiency. Additionally, the Public Charge Point Regulations 2023 will require all public chargepoints of 50kW or more to have 99 per cent reliability, ensuring a dependable charging experience for fleet vehicles.

The resource also discusses the potential of depot sharing, noting that with approximately 66,973 depots in the UK, enabling depot sharing could significantly reduce the demand for public HGV charging infrastructure, facilitating faster and more cost-effective fleet electrification.

Numerous case studies are included, showcasing successful fleet electrification projects by REA members. For example, Drax’s deployment of EV charging infrastructure for SES Water is saving an estimated 43 tonnes of CO2 per year, while Mer’s installation of 200 chargers for IKEA supports the retailer’s commitment to sustainable deliveries.

Leading the resource, Matt Adams, transport policy manager, REA outlined: “The REA, with its diverse membership, is uniquely positioned to take an authoritative stance on fleet electrification. This resource provides a proven, well-managed process for fleet managers considering electrification, offering significant savings on fuel costs and helping fleets achieve their ESG targets.”

Nick Harvey, senior programme manager, Energy Saving Trust said: “Electrifying fleets not only contributes to a more sustainable future but also offers potential financial benefits.

Our collaboration with the REA on this resource highlights that fleet managers can achieve significant cost savings – up to £1,500 annually per light commercial vehicle and approximately £3,500 per rigid HGV. These estimated savings support the economic viability of transitioning to electric vehicles and the efficiency gains that can be realised. We are proud to support this initiative, providing fleet managers with the insights they need to make informed, cost-effective fleet decarbonisation decisions.”