The drive to electric vehicles

With the possibility of using electric vehicles to generate revenue Paul Sheffield examines what companies should consider before investing in EVs and infrastructure

In the UK there are thought to be more than 230 000 registered light-duty electric vehicles (EVs) on our roads. More than 57,000 new EVs have already been registered in the first six months of this year.

While EVs are certainly becoming more popular, they still only account for 0.5 per cent of the total number of cars licensed. But National Grid suggests that the UK EV stock could reach anywhere between 2.7m and 10.6m by 2030.

The government is certainly promoting the uptake of EVs. Its Road to Zero Strategy commits to 25 per cent of all cars in the central government department fleet being ultra-low emission by 2022. In addition, the strategy aims for at least half of new cars to be ultra-low emission by 2030, and culminates in ending sales of new conventional petrol and diesel cars and vans by 2040.

But with concerns being raised about the availability of grid capacity as well as charging points, is it the right time for businesses to be moving to an EV fleet? The answer lies in assessing the business needs to determine how an EV fleet can match those requirements, and deliver benefits. The benefits of EVs extend beyond meeting sustainability targets and saving money. Depending on the type of charging infrastructure, there’s an opportunity to create a source of revenue if vehicle-to-building and vehicle-to-grid services become possible.

As the marginal costs for EVs continue to reduce, the financial argument for businesses for switching to EVs is a pretty good one. Also, businesses with a strong position on sustainability may want to make the switch sooner rather than later.

However, before making the move there are a few things to consider, including duty cycle, charging options and the impact of an EV on the future needs of the business.

Another issue has been the charging infrastructure. Currently, there are approximately 24,000 charging points spread over nearly 9,000 locations but some areas of the country have very few.

Businesses should consider what charging infrastructure they need — whether that’s relying solely on the public charging network or whether they need to use depot charging points, or a combination of work, home and depot charging options.

This will tie into the types of EVs they need, cars, vans or both, and the distances they will travel. For example, the current UK electric car ranges are generally 150-250 miles, while vans vary between under 100 miles to approximately 15 miles.

Presently, there is no standardisation in terms of charging points for EVs — some chargers won’t fit certain vehicles. In fact, there are as many as 37 different variations available from 450 approved Office for Low Emission Vehicles (OLEV) installers. As a result, businesses should consider on-site charging as this ensures the right charger is always available.

Additionally, it is essential to understand when, and how long for, vehicles will need to charge as the cost difference between a rapid and slow charger can vary significantly. Organisations need to research which types of charger are needed to keep their fleet on the road. Knowing which type of charger, and how many to install, relies on knowing journey patterns for each fleet vehicle.

It is also essential to know where to place the charging points on site as some locations may prove to be more expensive than others. For example, placing charging points outside of building reception might be more costly than if they’re situated closer to an electricity distribution board. And controlled or smart charging options may also be beneficial in order to restrict charging to off-peak periods when other demands on electricity supply into the site may be lower.

Fleet and procurement managers need to look at where they source the power and work with suppliers to get the most beneficial tariff.

EVs can provide a strong financial benefit for a business. They are extremely sustainable — savings on maintenance and fuel can be as much as £1,200 for every 10,000 miles. Also, low emission zone charges for businesses operating in these areas can be as much as £100 a day for large vans.

If businesses invest in a large number of vehicles, there’s the potential for them to be used as battery storage in the future. For instance, they can be charged up at off-peak times, and then discharged back into the business’ own energy supply when electricity from the Grid is more expensive. They could even be used as a source of revenue as part of a Demand Side Response scheme.

In addition, many organisations offer a company car as a ‘benefit in kind’. As of 2020, very low and no emission vehicles fall from 16 per cent to zero per cent for purely electric cars, and those with emissions of 1-50 g/km and an electric range of 130 miles or more. EVs, therefore, become a very attractive option for business executives. And with a government grant of up to £3,500 off the purchase price of a brand-new EV, they become attractive to the business as well.

Paul Sheffield is chief operating officer, Drax Customers (Haven Power & Opus Energy)