What’s holding back the electrification of large fleets?

Any business operating a large fleet of vehicles will be considering a transition to electricity. In this article, Natasha Fry , Mer UK’s head of sales for fleet and workplace looks at some of the barriers to large fleet EV adoption and how to overcome them.?

Large fleets are essential for the success of a business – and by large we mean upwards of 2,000 vehicles. Many industries rely on large fleets, for example for field sales reps in pharmaceutical or medical sales, banks and insurance companies and for maintenance engineers in utility and telecoms companies. Large fleets form the backbone of the supply chain as delivery vans for produce or last mile delivery – with 50,800 vehicles the Royal Mail operates the UK’s largest fleet. In short, large fleets are critical for the economy.?

With over 80% of companies reporting their carbon emissions, transitioning large fleets to EVs is an Environment, Sustainability and Governance (ESG) imperative.? Many businesses have a stated aim to become net zero carbon, running 100% alternative fuel fleets.?

There are sound commercial reasons for transitioning large fleets to EVs. Despite the fact that the upfront cost of an EV is higher than the equivalent petrol or diesel vehicle, the cost is offset over time by the lower cost to service, maintain and fuel EV fleets than their petrol or diesel counterparts, making the total cost of operation lower.?

EV fleets help attract more customers. Buying behaviour among consumers has shifted towards companies that have demonstrable sustainability practices. There is also the need to future-proof fleet operations before sales of new petrol and diesel vehicles are phased out completely by 2035.?

All good reasons for transitioning large fleets to EV.?

So, what’s holding fleets back?

Planning and preparing to transition to an EV fleet is complex and has a wide range of implications from financing the fleet and maintaining the vehicles to making sure they are productively on the road as much as possible. The fleet is every bit as important a business asset as the production line, manufacturing plant or office.

A step into the unknown?

For many companies, the challenge represents a real step into the unknown. If it’s not too much of a generalisation, most fleet managers know and understand vehicles. Electricity – not so much. It’s a whole new way of thinking about and planning fleet operations.?

When it comes to the cars, vans and lorries that make up a fleet, a lot of fleet managers currently face a limited choice of – relatively expensive – models. This is being addressed by manufacturers. As the market matures, the number of different vehicle options will increase, and prices will come down with competitive pressures. Analysis by Bloomberg New Energy Finance suggests that the cost of EVs will equal or could even be lower than petrol or diesel cars as soon as 2026.? ?

Some fleet managers are concerned about the range of vehicles and whether they will be able to complete jobs – especially where their route and payload isn’t predictable.? Again, vehicle manufacturers have invested heavily in technology to increase the mileage available from a single charge. And, of course, the public charge point network is available to fleet drivers enroute. But there will be competition with the general public, and the cost of recharging at a public charger is higher than a private or workplace charge point.?

Optimal planning of the transition of a fleet is a critical stage of the process. The key word is transition. Moving from one phase – an ICE fleet – to another – a decarbonised fleet – should happen in stages. This involves understanding the nature of a fleet’s activities in almost granular detail. Where the vehicles go, when and how they travel, when they stop, what they carry, etc. Reviewing the telematics and route data, along with depot locations and driving patterns, gives the fleet manager a rounded view of how the transition will ultimately play out. They can combine this with simulations of suitable EVs to replace their ICE equivalents to get an idea of the ‘after-transition picture’.?

Analysing individual fleet journeys, both on predictable and unpredictable routes, provides insight into which vehicles are most viable to convert first and which to prioritise. Then the rollout can be planned from there. This doesn’t have to be done in isolation. It is all part of a planned approach that an experienced EV infrastructure partner can help with.?

On-site EV charging for fleet

In parallel with planning the fleet rollout, fleet managers need to think about power. Concern about the availability of sufficient power for their employees to do their jobs is understandable. One of the major barriers often mentioned about fleet electrification is the question of power. How do I ensure that my fleet drivers have enough charge to get where they need to??

Control is the key. This points to dedicated workplace and fleet charging, which is fast becoming a business imperative. Having control over the availability of the fleet is critical and many businesses are looking to install and maintain an on-site charging infrastructure.?

While that may sound like a simple solution, once you start to unpack what is involved, the complexities mount up. EVs consume a lot of energy. So, it’s not just a case of installing a few chargers around a site, always assuming there’s sufficient space.?

?Unfortunately, many EV projects have already experienced delays due to power supply challenges and the issue a real concern when you look at the electricity demand needed to electrify commercial and industrial fleets.?

There needs to be sufficient energy provided from the grid. Placing huge demands on the local energy network creates issues around grid stability and security, including voltage deviation, frequency imbalance and grid overload. Getting your Distributed Network Operator (DNO) – the people who own and operate the means to get power from the national grid to your site – on board involves a fair bit of coordination and often lengthy waits for permissions.?

Barriers are there to be overcome

The good news is that fleet managers don’t have to become experts in electrical infrastructure in order to transition large fleets. With experienced charge point partners, they can get as much support as they need, for however long they need it to ensure the successful planning, installation and management of their EV charging systems.?

Through careful input of your site conditions, route data and configuring EVs, an experienced fleet charge point operator can analyse the charging capacity requirements throughout the year, and help optimise financial forecasting as well as the operational aspects of the fleet transition.

From strategy and planning, design consultancy and ongoing aftercare support, Mer offers a comprehensive EV fleet management service to help large fleet managers overcome the barriers to electrifying their fleets and start enjoying the benefits.?

Download Mer’s Fleet Manager’s Guide to Electrification for expert insight into everything a large fleet manager needs to know – from setting electrification goals to charger management, and everything in between.