Heed this before switching your fleet to EVs

By Debbie van der Schyff, ABB e-mobility product marketing manager

Here’s what you need to know before you transition your fleet to electric.

As climate change and pollution become increasingly critical global issues, more on-demand and shared mobility businesses are evaluating when and how to electrify their fleets.

For most companies in this segment – especially small-to-medium enterprises (SMEs)- it’s not just about social responsibility but also a matter of economic viability.

Fleet electrification requires significant investment in vehicles and charging infrastructure.

How can an SME approach e-mobility in a way that maximises the return on that investment (ROI)? Is saving on the cost of energy enough? Are there strategies business can take to increase those savings? And how can electrification open opportunities for new business models and revenue streams?

I explore some of the answers to these questions and focus on tangible solutions that can support SMEs in their electrification journey.

ABB partnered with Münchner Taxi Zentrum (MTZ) in Germany to explore the opportunities around both energy savings and new commercial models.

MTZ is a taxi operator in the greater Munich municipal area, operating 10 electric Jaguar iPaces in a fleet of 100 vehicles. They use five 50kW DC fast charging stations to keep their EVs on the road. The insights gained from this study can be applied to a host of other SMEs seeking ways to maximise ROI as they electrify their fleets.

One of the key challenges for these companies is the inflexibility of their charging requirements. Since time spent charging is time spent not earning money, they schedule charging so that all vehicles can be on the road during peak demand times. Unfortunately, these peak charging times often coincide with the times when energy is most expensive.

The study found that investment in energy generation or storage capabilities may deliver incremental cost savings, but that alone does not deliver a compelling ROI for businesses of this size. Solutions that offer peak demand management (PDM) capabilities, however – especially digitally enabled solutions – may offer considerable value against the cost to implement them.

One effect of growing peaks in energy demand will be challenges to grid capacity, stability, and resilience.

Independent distributed network operators (IDNOs) have an opportunity to mitigate this threat by investing in the peak management assets (such as energy storage) that businesses find uneconomical to invest in themselves.

SMEs can go beyond cost savings to revenue generation by capitalising on their charging infrastructure.

One way to do this is by selling spare capacity. With relatively inexpensive digital platforms, they can easily market and schedule parking and charging services to other businesses that operate EV fleets.

The opportunities that exist today will continue to evolve with the increasing penetration of distributed energy resources (DERs) in the grid and emergence of Energy-as-a-Service (EaaS) models.

Increasing regulations for energy trading and data ownership will also have an impact.

Businesses that can capitalise on these opportunities will not only reap the economic rewards but will also play a significant part in guiding the evolution of energy policy in the electrification revolution.

About the author

Debbie van der Schyff’s career with ABB started in 1997 where she was a sales assistant for the measurement business in South Africa. During her 25-year career with ABB, van der Schyff has held various roles ranging from industrial automation, smart home systems and uninterruptable power supply solutions.

Deciding to settle in here in 2009 presented van der Schyff with an opportunity to experience a new culture with endless possibilities.

She is the product marketing manager for the e-mobility division for ABB New Zealand. In this role van der Schyff assists businesses with charging solutions for EV technology. This fills her with immense pride and satisfaction, knowing she is contributing to making our world a better place for the next generation.