As the world moves towards sustainable mobility, the electrification of fleets has become a hot topic. In a recent podcast, industry experts Taylor Steele of SHAED, Will Quinn at EV Realty, and Bryan Jungers from E Source, shared their insights on the complexities, challenges, and future trends in fleet electrification. This podcast and resulting article delve into the key points discussed, highlighting the critical aspects of this transformative journey.
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Understanding Fleet Electrification
Fleet electrification involves converting traditional internal combustion engine (ICE) vehicles to electric vehicles (EVs). This process is complex and multifaceted, requiring significant infrastructure and technological advancements. Taylor Steele, with a background in utility-scale solar and EV charging deployment, emphasized the importance of understanding these complexities. “There’s a real need to bridge the gap between fleet owners, infrastructure developers, and utilities,” she said.
Bryan Jungers of eSource who has spent much of his career “Helping customers navigate and understand the electrification process agreed but adding that, “Fleet electrification is new to everyone and it’s massive. Most folks underestimate how much effort, how much expense, how much time will be required”.
What is Charging as a Service?
As a response to the need for expertise and guidance in fleet electrification, one of the emerging concepts in the EV industry is “Charging as a Service” (CaaS). Will Quinn, from EV Realty, explained this concept, stating, “Charging as a service can be scoped as narrowly as just owning and managing the charging station itself. In EV Realty’s model, we handle everything from the transformer upgrade to installing new electrical service panels and sizing all of that appropriately for a variety of commercial fleet types.”
This approach allows fleet operators to focus on their core business without worrying about the complexities of managing charging infrastructure. Different business models are emerging to cater to various customer needs, ranging from owning the charging assets to having them managed by third parties.
In addition to CaaS, another notable model is “Fleet as a Service” (FaaS). While CaaS focuses on providing charging infrastructure and services, FaaS offers a more comprehensive solution. FaaS providers manage the entire fleet operation, including vehicle procurement, maintenance, and charging. This holistic approach can be particularly beneficial for companies that want to electrify their fleets but lack the expertise or resources to manage the process. Steele elaborated, “Fleet as a Service takes the burden off fleet operators completely. They can rely on a single provider for all their electrification needs, from vehicles to charging and maintenance, making it a more streamlined and efficient solution.”
Different business models are tailored to address the varied needs of fleet operators. For example, small businesses might prefer CaaS to avoid the capital expenditure of owning charging stations, while larger companies might opt for FaaS to streamline their operations and reduce logistical complexities. As the industry evolves, these models are becoming increasingly sophisticated, offering flexible solutions to meet the diverse demands of fleet electrification.
Who’s got the Power?: Utility Engagement
One of the significant challenges in fleet electrification is the engagement with utilities. Many fleet operators underestimate the importance of involving utilities early in the process. Bryan Jungers, who oversees the mobility efforts at eSource, highlighted this, saying, “Talk to them early. One of the things we hear most frequently is that the utility wasn’t brought into the conversation until well into the planning process. Engage them from the start to avoid delays and ensure adequate power availability.”
Utilities play a crucial role in providing the necessary grid capacity and infrastructure upgrades. Quinn added, “Our business model ensures that sites are ready for fleet operators, with reserved grid capacity and upgraded infrastructure, so they don’t need to navigate the complexities of utility upgrades.”
However, engaging utilities is not always straightforward. The process involves understanding the utility’s capacity planning, which can be complex and varies widely by region. Utilities have to conduct load studies and engineering reviews to assess the feasibility of connecting large electric fleets to the grid. Jungers emphasized, “Utilities publish a lot of information publicly, like capacity plans and resource plans, which can help in planning. But it’s crucial to have someone who understands the utility industry and can bridge the gap.”
Another critical aspect is the unpredictable nature of EV fleet load profiles. Unlike traditional base load power users like supermarkets or office buildings, EV charging demands can vary significantly. Steele noted, “We had to educate utilities on the diversified load profile of EVs, which operate very differently from predictable loads. This requires a different approach to planning and managing power distribution.”
The process of securing power from utilities can be lengthy and costly. Fleet operators often need to conduct large load studies, pay for utility analyses, and potentially face long interconnection times. Quinn shared, “You might find yourself asking for several megawatts of power, which isn’t always readily available. We look for locations with existing capacity to minimize the need for costly and time-consuming upgrades.”
Effective engagement with utilities also means addressing their concerns and working collaboratively to find solutions that benefit both the fleet operators and the grid. Jungers concluded, “It’s about building a partnership with utilities. They need to understand your long-term electrification plans, and you need to appreciate the constraints and opportunities within the utility sector. This collaboration is key to a successful electrification strategy.”
Future Projections and Industry Trends
The future of fleet electrification looks promising, with ongoing advancements in technology and business models. Steele shared her perspective, “I don’t think there’s a single answer. We need to think broadly about the entire ecosystem of charging and electrification solutions.”
Quinn echoed this sentiment, emphasizing the need for standardization, “We’ve agreed on some fundamentals, like standardized communication protocols and hardware. This alignment reduces fear and uncertainty in the market.”
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Written by Taylor Steele
July 2024
