Mastering the energy transition for successful fleet electrification

Mike Nugent, Chief Revenue Officer at Hitachi ZeroCarbon, explains the challenges about fleets shifting from ICE vehicles to ‘iphones on wheels’.

We all have to find ways to decarbonise. The earth has now breached the 1.5C climate limit for the first time, and so it’s never been more important that we move to more sustainable, planet-friendly ways of operating.

In the mobility industry, everyone from last-mile delivery firms through to the largest hauliers has their own carbon reduction and net-zero targets to meet. Many of these fall before the end of the decade, and are accompanied by UK government mandates, like the 2030 ban on the sale of new cars with internal combustion engines. It’s with these objectives in mind that many have started turning to fleet electrification to prepare for the phasing out of diesel and keep compliant with new regulation.

But fleet decarbonisation and electrification is not as straight forward as swapping diesel for electric vehicles. There’s a lot to consider and understand about the energy transition, its requirements, and how it can benefit the organisation.

Engaging with the energy ecosystem

Discussion within the green economy often centres around its influence on new roles and skillsets, and this is no truer than with fleet electrification.

Through this process, fleet managers will find themselves in the business of battery management and optimisation, and this requires a more holistic understanding of how their fleet interacts with the energy ecosystem around them. For instance, they will need to become acquainted with energy demand management, tariff optimisation, grid balancing and how this can help them preserve assets like EV batteries, so they retain residual value.

With diesel vehicles, there has always been an element of fuel management, but this is not to the same complexity as EVs. Fleet managers must plan in advance, based around route, climate, battery charge and fleet availability. Charging whole fleets overnight can place a strain on the local grid, and unnecessarily increase costs or degrade batteries. While some vehicles may also require more charge than others, based on the planned routes, weather or the state of the battery health. They will need to optimise their fleet charging based on available infrastructure.

Fleet managers can manage these energy requirements by working with distribution network operators (DNOs). Together, they can assess the existing grid’s capacity to cater for increased energy demand and ensure network limits are not exceeded by the charging of vehicles. Moreover, DNOs can offer fleet managers incentives to participate in demand response programs or flexibility services. This allows charging to be temporarily paused or adjusted during grid peak times to help maintain grid stability and lower costs. This means that fleet managers can use this information to create charging schedules to maximise cost savings on charging their fleets.

Complete fleet insight

As fleet managers increasingly enter the business of energy through electrification, maximising return of investment, optimising energy consumption and costs, and maintaining asset life will require a deep understanding of vehicle health and performance.

The entire fleet operation will, through electrification, be presented with the opportunity to undergo a digital transformation process with data analytics and insight as the cornerstone of strategy.

Diesel vehicles will be replaced by what is effectively an ‘iPhone with wheels’. Fleet managers will be reliant upon access to real-time data so they can see into the live performance of their assets, such as the vehicle’s battery, as well as energy consumption patterns. This means that they can be confident that the vehicle has enough charge to be operational or to make it to the next station without delay. It also means they can optimise charging based on route and inclination, and whether the vehicle’s battery will likely be under greater strain throughout the delivery.

Having complete visibility and control over key assets, like the EV battery, and understanding its state-of-charge, degradation, and need for repair or replacement can help preserve its shelf-life and mitigate unnecessary or heavy energy usage. It also extends of the life of the battery and ensures a higher residual value of the asset. With the right data analytics tools, fleet managers can assess energy consumption per mile, and how this may relate to different driving habits and behaviours. Fleet managers can amend routes based on which roads may require increased acceleration or experience geographic challenges, and so mitigate the impact this can have on charging patterns and costs.

Gearing up for a successful fleet electrification

Within the next five years, let alone the decade, the mobility industry will have a completely new look. Diesel vehicles will be phased out in favour of electric alternatives, and fleet managers, engineers and maintenance teams will have a completely new mindset and approach to vehicle optimisation and performance.

Shaped by carbon zero targets, and government regulation, operators will find themselves in the business of energy management. They will need to understand how their fleet fits into the wider energy eco-system and how to keep costs down, and at the same time, protect their assets. Building relationships with DNOs will be critical, as will developing data analytics capabilities so they can enjoy complete visibility into and control over their vehicles.

There’s a lot to be excited about when it comes to the future of commercial EVs, fleet managers just need to ensure they are set up for success – and this starts with understanding it is more than changing vehicle drive trains, it’s also about recognising it is about mastering the energy opportunity and transition.

This year see’s Transport and Energy’s inaugural Fleet Electrification Forum event, which will unite transport and energy professionals and help accelerate decarbonisation of fleets across both the public and private sectors.

Register your interest here.