Critical success factors for fleet electrification in 2024

Power supply and cost optimisation are the key considerations for fleets to prioritise next year, with data analysis vital to success, says Vev.

The electric fleet solutions provider, which is backed by Vitol, has supported large commercial fleets through the challenges of transitioning to electric vehicles (EVs) during 2023.

Both macro-economic and sector challenges presented hurdles for fleets this year, it says.

From inflation rate increases and recession fears, to reservations around sufficient charging infrastructure, fleet owners were concerned with the level of investment needed to electrify, and the practicalities of developing and executing a robust electrification plan.

Mike Nakrani, CEO of Vev, says that given the scale of their operations, fleet owners and managers have expressed worries about how much time, operational change and capital expenditure is needed to even start their fleet’s path to electrification.

“Their concerns have been compounded by the delay in the ban on the sale of new ICE cars and vans from 2030 to 2035, with some deeming the move to have shifted the goalposts and requiring a rethink,” he said.

However, Nakrani believes that it is essential for fleets to recognise that these challenges should not detract from the huge opportunity that electrification offers and the benefits of starting now.

He explained: “When correctly implemented electric fleets can save energy and maintenance costs, bolster sustainability credentials and provide access to low carbon contracts.

“Also, electrification and in turn digitisation provides more efficient operations enabling lower costs and higher margins versus today’s diesel fleets.

“The fleets that are recognising this now will maximise their value over the next two years and get an edge over their competitors."

As the industry looks ahead to next year, fleets are set for a critical turning point, according to Vev.

As part of its consulting practice, it has revealed that fleets are increasingly recognising the importance of an optimised power supply.

"Power supply, cost optimisation and upskilling for EVs are the key factors fleets need to prioritise next year," Mike Nakrani, Vev

From identifying the right energy sources and tariffs to analysing grid capacity, evaluating accurate requirements for EV charging, and designing microgrids with solar generation and battery storage, Vev says it’s essential for fleets to make informed, data-driven decisions to efficiently power their fleets at the lowest possible cost.

Nakrani continued: “Power supply, cost optimisation and upskilling for EVs are the key factors fleets need to prioritise next year.

“Support such as the Government’s recently announced £70 million scheme for boosting motorway service area charging, and its commitment to install 300,000 public electric vehicle charge points by 2030, are welcomed and will help reinforce confidence in EV range.

“However, fleets themselves still need to work smartly to develop their own optimised charging solutions and vehicles within their budgets.”

Nakrani argues that working with an electrification partner to upskill their teams on obtaining vehicle and energy data, interpret it, and use it to make better decisions is also critical.

“Fleets doing this are already seeing a competitive advantage in many of their use cases and those that follow suit will set themselves up for success next year and for years to come,” he said.

“We predict an upsurge in the adoption of electrification-as-a-service next year to help manage the upfront financial burden.

“It’s a model that moves the EV investment from capex to opex through a managed service rather than purchasing the entire fleet and infrastructure, and it’s one that fleet managers are increasingly becoming interested in.”