How can the UK accelerate larger vehicle electrification?

The benefits are clear

In amongst the challenges of electrification, we mustn’t forget the benefits it can bring.

Sustainability first

Customers are increasingly focusing on sustainability among criteria when making purchasing decisions. Organisations are keen to reduce their carbon emissions as they work towards net zero. Ignoring the impact on their corporate social responsibility (CSR) or environmental, social and governance (ESG) credentials means handing competitors a huge advantage.

Organisations will feel the repercussions on a day-to-day level as customers, prospects and the wider public form opinions based on what they see on the roads.

Cost savings

As well as the financial benefits that enhanced CSR and ESG credentials can indirectly bring, electric HGVs and large vans have the potential to deliver long-term cost savings.

While the purchase prices of electric vehicles are higher – and the cost of charging infrastructure to support electric fleets are significant – that’s not the end of the story. Total cost of ownership (TCO) calculations factor in other metrics, such as refuelling and maintenance costs. These offer organisations a way of saving on ongoing costs – and reduced maintenance requirements mean more time on the road – a vital factor in assessing fleet value.

Competitive advantage

Acting on electrification opportunities sooner rather than later gives organisations a chance to start reaping the rewards now. For example, certain public sector tenders specify requirements for suppliers to provide zero-emission fleet solutions. Organisations that can demonstrate not just their general sustainability credentials – but their commitment to reducing fleet emissions – will increasingly find favour.

Tackling ‘low hanging fruit’ and transitioning large vehicles clearly suited to electrification will give organisations valuable learnings – as well as enabling them to enjoy early cost and sustainability benefits.

It’s also likely that electric HGVs and large vans will offer greater driver satisfaction to the ICE equivalents. In time, this will help organisations in the recruitment and retention of drivers.

This all adds up to short-term competitive advantage as others intentionally delay or struggle to prioritise switching from diesel haulage fleets.

Helping hands

Organisations should take advantage of support available and, where possible, contribute to research and information sharing.

Innovation projects

Successful consortia from zero emission heavy goods vehicle competitions are making important strides for larger-vehicle electrification. The projects they’re developing aren’t just proving the value and viability of electric haulage fleets. They’re laying foundations for suitable charging infrastructure and encouraging private investment in the sector, too.

Leveraging the intelligence these initiatives generate is going to be vital in the UK’s journey away from ICE HGVs and large vans.

Government support

While incentives specifically to support the transition to electric larger vehicles aren’t plentiful, support still exists that organisations can take advantage of.

The Plug-in Van Grant offers discount on the purchase price of vehicles over 4.25 tonnes in weight.

More general EV incentives, such as the EV infrastructure for staff and fleets and the Workplace Charging Scheme, support with the costs of hardware, installation and preparatory works.

Our recent research found that one in three fleet decision makers was unaware of governmental EV grants and financial incentives, contributing to a perceived lack of support. It’s crucial that fleet professionals familiarise themselves with available grants and factor financial contributions into their cost analyses.

Technological developments

Advances in vehicle and hardware design – and fuelling options – are providing answers to large-vehicle electrification problems.

Charging up

As we reported previously, the types of EV charger – and the special use cases they cater for – are increasing. Organisations should look into the options available for charging larger electric vehicles at their depots. There may be solutions to help overcome the issue of lack of charging space or the need to continually rotate large-vehicle positions to enable full-fleet charging.

Solutions for charging vehicles on the move already exist. Whether technologies such as pantograph and inductive charging can provide cost-effective answers across the UK’s main driving routes remains to be seen.

Alternative fuels

Hydrogen refuelling is ultra-fast and provides a far greater range than a full electric charge.

Hydrogen-powered vehicles are likely to be even more expensive than electric – and there’s currently a lack of refuelling stations. However, it’s possible that the large-van and HGV solution for beating the ICE ban – at least in the short-to-medium term – might lie with a combination of electric and hydrogen-powered vehicles. With fleet depots in and around cities, hydrogen-powered HGVs could do the longer, inter-city ‘trunking’ haulage before handing over to electric vans to cover local transit.

Taking action

Although the full transition away from ICE haulage vehicles seems some time away, there are actions the UK’s organisations can take now to accelerate progress and reap rewards.

Crunch the numbers

Firstly, a successful electrification programme relies on accurate and insightful data. If you’re planning fleet electrification, you’ll first need to understand your own large-vehicle fleet and its operational requirements before investing in vehicles or hardware or confirming charging locations. All organisations are different – whether that’s in terms of routes, mileages, drivers or payloads – so there’s no ‘one size fits all’ solution.

The data you’ll need to generate covers basic telematics information – such as existing vehicles’ journey distances, daily mileages and dwell locations and durations. But it also needs to drill deeper than this and offer more comprehensive insights. As independent research and technology organisation Catapult’s report on the subject suggests, data will need to feed into planning for schedules, routes, break times and number of operational vehicles.

For example, if you recognise a need along a popular route to charge during a journey – and it’s near a site you own – it’s likely you’ll need high-power hardware there for fast charging. If your large vans and eHGVs are likely to be charging overnight at their depots, you might need several relatively inexpensive, AC sockets available. If you’ve identified requirements for daytime charging, it’ll be worth considering DC chargers with load balancing capabilities. These can provide more power and therefore faster charging whilst minimising installation disruption and cost.

There may also be options in future – particularly if your network of sites is limited – to partner with other companies in order to share charging resources.

Take baby steps

It’s possible, though, that you may be able to transition some of your larger-vehicle fleet now. Large electric vans and eHGVs are suited to urban, shorter routes and they’re not subject to clean-air-zone charges. Many cities have already converted to electric bus fleets and electric refuse collection vehicles. If your organisation runs short, regular routes between locations or returning to depot, you may be able to start reaping the benefits of electrification now.

Transitioning to electric vans and HGVs in stages – rather than all at once – will spread costs and provide invaluable learnings.

Spread the cost

Finally – whether you decide to start electrifying now or not – it’s worth looking into financing options. The availability of these is on the rise and they’re likely to increase in popularity as we approach the ICE-vehicle ban.

Finance models can help you pay for the cost of charging infrastructure – and District Network Operator (DNO) electrical capacity upgrade costs, if applicable – over a period of years. Being able to invest more in infrastructure and installation due to the extended period of payment can provide operational, financial and future-proofing benefits too. It can make hardware you previously ruled out suddenly affordable. It can lock in current prices – while you’re paying instalments well into the future. And it can increase the number of chargers you’re able to install – or the number of locations you’re able to install them at.

Even more so than with passenger-car electrification, transitioning to large electric vans and eHGVs isn’t going to be an overnight job. But keeping abreast of developments, understanding your requirements and taking steps sooner rather than later will stand organisations in better stead for beating the ban and reaping the rewards.