By Andy Bennett, CEO, Driivz
December 18, 2024
Electrifying fleets has become a growing priority within the mobility revolution – catching the attention of the nation’s largest deliverers such as Amazon and the USPS. Experts project this trend to continue increasing rapidly. The global light-duty vehicle fleet accounted for 1.31 billion vehicles in 2020, and by 2025, this number is expected to reach 2.21 billion.
Fleet operators are electrifying for a number of reasons. Transport is responsible for about 28% of total U.S. greenhouse gas emissions, making it the country’s biggest source of these pollutants. In 2022, fleet operational costs rose 21.3% over the previous year, with fuel costs as the leading expense. Additionally, fleet operators will need to comply with internal combustion engine bans set to be implemented globally over the next decade. In contrast, EVs meet government compliance while accessing incentives that include tax benefits and subsidies. Coupled with environmental benefits, EVs can save $6,000 to $12,000 over the life of the vehicle on maintenance costs.
To fully achieve these benefits, fleet operators must plan for and navigate obstacles in electrification. There are three important considerations to keep in mind before making the switch to ensure EV fleets run efficiently, sustainably, and cost-effectively.
Common Obstacles Associated with Fleet Electrification
Fleet operators know that time is money, and as such, stability in powering vehicles is vital. Considering delivery shipments represent one of the most significant economic streams in the U.S. and transport over 70% of all U.S. goods, a stable charging environment is essential.
Power constraints are another consideration in fleet electrification. By 2030, the share of electricity used for EV charging could rise to as high as 4-10% at peak demand. At charging stations, set numbers of vehicles can charge at a given time. These capacity limits paired with the energy demands of large vehicles, including buses and heavy-duty vehicles, can present their own set of energy management challenges. An immense amount of energy is needed to charge several of these vehicles simultaneously, making it important for fleet operators to understand energy requirement patterns and plan ahead to charge effectively.
Electricity price fluctuation is another obstacle, yet it’s one that can be planned around. Just like oil prices, electricity costs rise and fall. But not only is electricity around three to five times cheaper than diesel, its price swings are much less volatile than oil’s. One of the biggest differences between the two fuel sources’ prices is that the cost of electricity can fluctuate depending on the time of day. Given that electricity prices rise when demand is high, the cost of charging is another factor for fleet operators to plan for. This opens a door for more cost control; fleet managers can charge around times when demand is lower to keep costs down. Doing so will require fleet operators to adopt energy management strategies to monitor and manage total energy consumption.
How Fleet Operators Can Address Barriers to Effective Electrification
Being mindful of the obstacles associated with electrification can help fleet operators integrate EVs seamlessly, allowing them to focus on their work rather than vehicle charging. EV charging management solutions are an optimal way to enable fleet operators to save time, reduce costs, and keep the fleet rolling while providing the flexibility and scalability needed for fleet expansion.
EV fleet operators need platforms that offer user-friendly tools and enable their drivers to map out their entire journey. At charging depots, smart EV charging management systems provide advanced planning capabilities, including 24/7 charger monitoring. These systems efficiently match incoming vehicles with available chargers, ensuring all EVs can charge effectively without facing power constraints. Along with reserving chargers, these systems can determine charging parameters such as the current state of charge, upcoming service schedules, and the type of chargers available. They can also monitor unmanaged loads, such as heating and cooling systems, and adjust the power allocated to EV charging accordingly. This can prevent the site from blowing a fuse while allowing a depot to charge up to six times as many vehicles as unmanaged charging.
Smart charging software aids fleet drivers on the road, as well. Advanced EV charging systems and apps can assist in locating nearby charging stations, enabling drivers and fleet managers to plan their routes accordingly while minimizing delays.
Smart energy management systems can also lower energy costs for charging. This software can schedule charging according to lower time-of-use tariffs set by the local utility. Advanced systems can even leverage vehicle-to-grid technology to reduce costs. By tapping into the energy stored in fleet vehicles and returning it back to the grid when demand is high, EVs can become a source of revenue for fleet operators while connected to chargers at the depot. Fleets can further maximize their savings by participating in demand response programs, benefiting from reduced rates during off-peak hours and receiving incentives for reduced usage during peak periods.
The Road Ahead
While electrifying fleets requires overcoming obstacles, doing so provides fleet operators with unique chances to innovate and increase control. With the right tools in place, fleet electrification strengthens operational efficiency and reduces costs while simultaneously lowering carbon emissions and creating new revenue streams. Adopting smart energy management tools alongside the ongoing development of charging infrastructure is essential for accelerating fleet electrification and meeting net-zero goals. By leaning into these opportunities, fleet operators can find advantages in the competitive landscape while paving the way for a more sustainable future.
About the Author
Andy Bennett is the CEO of Driivz. With over 26 years of experience in energy software, Andy is focused on spearheading the transition to electric vehicles through automation and smart energy management.
