Adopting EV Fleets Presents Challenges

EV is fast becoming a top priority for many businesses, fuelled by the significant benefits that can be realised through making the switch, writes Dee Humphries (pictured), Managing Director, Equans EV Solutions. With reduced carbon emissions, financial savings, increased sustainability credentials, improved productivity, enhanced employee experience – the benefits of transitioning to an electric fleet are undeniable.

Whilst there are clear benefits on paper, it’s important to acknowledge that transitioning a fleet to EV can come with challenges. In fact, many businesses are presented with multiple barriers when they begin to adopt EV that can sometimes halt the process. However, the solution isn’t to simply admit defeat, but rather to navigate and manage the challenges effectively to ensure the transition is seamless, enabling the gain of long-term benefits.

Here, Dee Humphries, Managing Director of Equans EV Solutions, highlights some of common challenges businesses are facing when it comes to adopting EV, with the strategy to overcome them – alongside a proven framework for EV adoption.

Challenges and solutions for businesses adopting EV

A common challenge fleet operators face in the early stages of their EV transition is a lack of internal buy-in. This can come in the form of resistance from those who do not understand the benefits of EV, as well as from those who see EV as an unnecessary business cost. This is typically prevalent in industries that have historically been dependant on conventional fuel options.

To overcome this barrier, it’s important to ensure these stakeholders are engaged from the offset and the programme is aligned to the business’ overall goals. Overcoming this barrier doesn’t need to be complex, but rather about education and demonstration. Consider sharing success stories of similar businesses via case studies, reports or testimonials. This can help bring the benefits of transitioning to life, building the case for EV adoption.

Another challenge is having the capital to invest in both the required vehicles and charging infrastructure. This can be particularly challenging if EVs weren’t accounted for in long-term budgeting. However, it’s important to think of EVs in terms of total cost of ownership, instead of initial investment costs. Whilst transitioning to EV might be expensive initially, the long-term savings through lower fuel costs, reduced maintenance costs and an extended vehicle lifespan make the investment more than worthwhile. There are also ample government initiatives and schemes that are available for both infrastructure and vehicle costs, plus leasing options available, to make EVs more economically viable.

As with most things, failing to properly plan and prepare is a challenge many businesses will face as this will result in an ineffective EV integration strategy. Transitioning to EV requires an in depth understanding of new technologies, assessing operational requirements and much more. However, often resources to develop this knowledge are limited – meaning hesitations can occur, halting the transition. The solution here is to bring in the experts. This means a specialised organisation who can develop a detailed and tailored EV transition strategy that is aligned with the goals and needs of your business. This will remove any uncertainty and ensure the transition is smooth and successful.

Why now is the time to transition your fleet to EV

Despite the challenges that transitioning to EV presents, the reality is that businesses who don’t start to make the transition will get left behind. The time to start the transition is now and thankfully, with the right strategy and approach, these challenges can be overcome – meaning there’s never been a better time to do so. EV adoption has become more convenient than ever for businesses across the UK. Recent electric commercial vehicle ownership stats highlight many have already implemented EV for their fleets, with vans up 67.3%, buses and coaches increasing by 34.9%, and the number of zero emission trucks almost trebling since last year.

Concerns that would usually be front of mind for businesses looking to adopt EV their fleet would be cost and range. Both of these are steadily becoming worries of the past. Take cost – battery prices have plummeted by 89% over the past decade, making EV models increasingly competitive against petrol and diesel vehicles. There are also multiple incentives for EV adoption and charging infrastructure from the government, offering a breadth of financial support to meet the needs of all businesses.

Range capabilities have expanded considerably meaning the average modern EV can now travel over 200 miles on a full charge. This has significantly reduced the concern of range anxiety for fleets and means EV is no longer a barrier for businesses that need to travel hundreds of miles on a daily basis. Infrastructure has also grown and improved, offering a solution to keep drivers on the move when required. It’s been noted that there are now 77,531 charging connectors in 29,709 locations across the UK. This is a 194% increase compared to 2019 – meaning charging convenience has substantially improved for drivers.

A Proven Framework for Electric Vehicle Adoption

To navigate this transformative shift in fleet management, Equans EV Solutions has released a whitepaper that addresses the common questions and obstacles faced by logistics fleet operations. Drawing on over a decade of industry expertise, the whitepaper adopts a barrier-to-solution approach, focusing on challenges such as how to gain internal buy-in for EV adoption, the considerations required for designing an appropriate charging solution, and how to pilot the necessary operational and organisational changes to make EV charging a triumph.

Backed by more than 10 years of industry expertise, this whitepaper delivers critical insights logistics operators need to transition to EVs confidently and effectively. The key features include:
• Completing a comprehensive financial analysis to realise the true total cost of ownership for an electric fleet.
• Creating a strategic EV integration plan that covers organisational adjustments, infrastructure development, fleet management and training needs.
• Adopting transparent communication and assigning ‘EV champions’ to illuminate the long-term benefits of EVs to internal stakeholders which align with environmental and operational gains.

With this strategic, yet adaptable, approach towards fleet management, Equans is not only solidifying the position of businesses that adopt EVs, but also shaping a promising and eco-responsible future for the global transportation industry.

Government Action Needed to Decarbonise Logistics Sector

The UK Government must ensure policy supports the decarbonisation of London’s logistics sector if the UK is to meet net zero ambitions, according to a new report released today.

Installing rooftop solar panels across all logistics spaces and clarifying the electrification of HGVs across the Capital, are two of the three recommendations made to Government today by planning and development consultancy, Turley, and the London Industry and Logistics Sounding Board (ILSB) as part of The Accelerating Logistics Towards Net Zero report. The report highlights the issues facing London’s logistics sector.

Logistics remains one of the largest emitting sectors in the UK. Transport alone produced 24% of the UK’s total emissions in 2020. While the Government has a programme to confirm the way forward for zero carbon HGV fuels by 2030, this new report argues this will be too late for the logistics sector. Instead, Turley and the ILSB are calling on Government to provide interim direction and policy support, to allow investment that supports the rollout of hydrogen or electric-powered HGVs for nationwide fossil-fuel free fleets.

Businesses like Amazon are already committing to a sustainable HGV future. The retail giant is investing £300m in the UK to decarbonise its fleet and replace with electric HGVs, electric vans, and eCargo bike fleets, as well as rolling out fast charging infrastructure. Other organisations are delaying due to the lack of clarity on the way forward. A second recommendation calls for further support to speed up the deployment of rooftop solar panels on warehouses in London and the rest of the UK.

Existing warehouse roof-space across the UK could host 15GWp of solar power, doubling the nation’s current total installed capacity without any loss of land. However, only 5% of warehouses currently have solar panels installed, according to the UK Warehousing Association.

The report argues that slow grid upgrades, regulation around sharing and selling energy generation, and the need to embrace smart management is holding back the rollout of solar across the logistics industry. A need to embrace complexity is hindering the development of the last mile logistics sector too. Last mile delivery can significantly cut the carbon footprint of deliveries across London, by bringing storage closer to the point of delivery, with different vehicles like electric vans, bikes, drones, autonomous robots and even walking supporting the final stage of delivery.

However, as last mile logistics can be so variable in nature and needs to be closely located with other uses, a flexible and positive approach is required from a planning/policy perspective. Both the public and private sector will need to think more creatively to incorporate local distribution hubs in strategic urban locations where this type of space is needed the most.

Barny Evans (pictured), Director, Sustainability, at Turley, said: “The logistics sector is the lifeblood of our economy. The industry recognises it is a significant source of GHG emissions and other environmental impacts; it is eager to accelerate its decarbonisation. There’s a responsibility on Government to unlock the barriers to this, and provide the policy needed.”

Sarah Bevan, Director, Planning & Development at BusinessLDN and co-founder of the Industry and Logistics Sounding Board, said: “Logistics is one of the fastest growing sectors for the economy and substantially impacts aspects of all businesses across the Capital and UK. Like all high carbon-emitting sectors, regulatory certainty and policy reforms are necessary to drive innovative solutions, such as HGV decarbonisation, and investment in renewable energy solutions like rooftop solar installations to reduce our carbon footprint. “That’s why it’s imperative that steps are taken now to decarbonise the sector and help us reach net zero before it is too late.”

Jules Pipe, Deputy Mayor of London for Planning, Regeneration and Skills, added: “Our net zero targets are ambitious and if we are to meet them the decarbonisation of energy intensive sectors like logistics is critical. Businesses operating in the sector have a key role to play but Government support will be equally important. This report calls on Government to speed up the decarbonisation of one of our most important sectors and proposes three key areas for action.”

Alan Holland, Managing Director for Greater London at SEGRO, added: “SEGRO and many of our customers are making huge strides towards the transition to net zero carbon, but success will also be measured on whether the whole sector can lower its carbon emissions not just a proportion of those operating within it. To be effective, much of this collective action and investment needs to be matched by having the right public infrastructure and a smart approach for how we plan the use of land. We welcome this report’s exploration of some of the key challenges, we encourage industry peers to embrace the innovation opportunities it identifies and we ask for policy makers to act on its recommendations.”

Right Charging Infrastructure for EV Fleets

Nicola Mahmood (pictured), Business Development Director of Equans EV Solutions, advises Logistics Business readers on adopting the right charging infrastructure for commercial vehicle EV fleets.

Over recent years, making a conscious effort to reduce corporate carbon emissions and become more sustainable has switched from being a consideration, to something that is essential for every business. Whilst there are many ways for businesses to improve their sustainability credentials, organisations are increasingly considering van and lorry fleet electrification as part of their sustainability strategy. This is reflected in recent electric vehicle uptake figures as at the end of last year, sales of new electric cars in the UK overtakes diesel vehicles for the first time – largely fuelled by fleet and business users.

With roughly only one fleet replacement cycle before the UK’s 2030 ban on petrol and diesel vehicles comes into effect, now is the time to start considering EV charging infrastructure for your logistics operation.

Key considerations for charging infrastructure

Choosing charging infrastructure that best meets the needs of your operation is crucial. To determine the right charging solution, you first need to understand the behaviour of your fleet. First consider the distance your drivers travel on a daily basis. According to the statistics from the Department of Transport, over half of van drivers in the UK tend to stay local – only travelling within 15 miles of their base on a typical day. Mapping out your typical routes throughout the week will help you to determine the required range of your van and lorry fleet vehicles.

The next factor to consider is where your drivers will return to once they’ve been on the road. If they will be returning to a depot overnight, installing on-site charging facilities using AC fast chargers – ideally 22kW and under, is likely to be the most suitable option. However, if the vehicles return to base but need a quick charge before heading back on the road – rapid charging is something that should be taken into consideration. If at the end of the day, the vans are taken home by employees – domestic charging should be the first choice. If your fleet operates different schedules, you might need a combination of on-site and domestic charging to keep your operation moving.

For fleets that cover long distance on a daily basis, likely with lorry fleets, public charging networks provide the perfect solution. Public charging infrastructure is rapidly growing to meet the needs of EV drivers, both private and commercial. In fact, recent statistics have shown that in the UK there are currently 33,281 public EV charging points. The GeniePoint network has over 500 rapid chargers across the UK, with most charging the average EV in under 45 minutes.

To make managing payments easier, many charge point network operators offer trade accounts, enabling businesses to set up an account for multiple drivers and be billed in arrears for usage on the public network. This mirrors standard fuel cards – making the transition from petrol or diesel even easier.

Taking the habits of your fleet and your drivers into consideration will help you determine which charging solution is going to be right for your logistics business.

Delivering charging infrastructure that works for your business

Once you understand your fleet charging needs, the next phase is to get your site EV ready. Working with a dedicated charging partner, such as Equans, can ensure this process is smooth and efficient. Choosing a partner that provides an end-to-end charging solution will ensure you are supported through every stage of your fleet electrification process. This includes full planning, design and delivery of your EV programme, from recommending the most suitable hardware, to carrying out installation works. Post installation, the right partner will be on hand to help you manage and optimise your charge points, provide crucial performance insights and support with monetisation.

Overcoming power challenges

One of the biggest barriers to EV charging implementation is on-site power availability. If the solution identified means that additional power is needed, it can be expensive and time consuming to upgrade the on-site power supply. Innovations such as load balancing and battery storage are great solutions to tackle this problem. Battery storage is typically cheaper than a supply upgrade and can help to drastically reduce lead times. For logistics organisations looking to meet specific deadlines – battery storage can ensure those critical timescales are met.

With battery storage, you can also increase energy efficiency by combining with solar power. By installing solar panels onto the site building and battery storage alongside, energy captured through the day can be stored within a battery and used to recharge vehicles overnight. Maximising these innovations can eliminate the barrier of not having on-site power available and also reduces the investment required – making EV adoption simple and cost-effective.

Start small and scale your solutions

There’s a lot to consider when it comes to finding the right charging solution, so it is recommended to start small and scale up. This enables you to change your strategy if needed and prove the concept works, before making a large-scale investment. Speaking to an expert charging infrastructure partner who offers scalable solutions is recommended to guide you through the process. Finally, it’s important to consider what will work for your business’ specific use case. It’s likely that you will need a combined approach to charging, installing chargers on-site, as well as using public networks. Through Equans EV fleet analysis, we take the time to understand your business needs, and therefore can recommend a scalable charging solution that will work around you.

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