Fleet electrification is gaining significant momentum across Europe, with an increasing number of companies transitioning their vehicle fleets to electric vehicles (EVs).
This shift is driven by a combination of factors that are powered by innovative technology and funding support but are also driven by meeting net zero emission goals, new government regulations and the obvious operational cost-saving potential.
In this article, we’ll be focusing on how energy storage systems and smart energy management is expediting the adoption of electrified fleets across Europe.
READ MORE: What is Fleet Electrification & How Much Could Your Company Save?
How energy storage empowers fleet electrification
Energy storage, specifically stationary battery energy storage, plays a crucial role in overcoming many of the challenges associated with the fleet electrification process. These solutions offer numerous benefits that can significantly enhance the efficiency, reliability, and cost-effectiveness of electric vehicle fleets.
Reduces peak demand and energy costs
One of the primary advantages of energy storage is its ability to mitigate high demand charges and reduce overall energy costs for fleet operators.
Demand charge mitigation
Demand charges are fees imposed by utility companies based on the highest amount of power drawn during a billing period. For EV fleets, these charges can be substantial due to simultaneous charging of multiple vehicles. BESS can effectively reduce these charges by supplying power during peak demand periods, thus lowering the maximum power drawn from the grid.
Cost savings through load shifting and peak shaving
Battery storage enables load shifting, where energy is stored during off-peak hours when electricity rates are lower and used during peak hours when rates are higher. This practice, known as peak shaving, can lead to significant cost savings. In the UK for example, some fleet operators have reported energy cost reductions of up to 30% through effective use of BESS for peak shaving.
Maximises charging infrastructure capacity
BESS can greatly enhance the capacity and efficiency of EV charging infrastructure.
Supplementing existing grid connections.
In many cases, the local grid may not have sufficient capacity to support high-power EV charging stations. BESS can supplement the existing grid connection by providing additional power during charging events, effectively increasing the number of vehicles that can be charged simultaneously without overloading the grid.
Enabling faster deployment of charging stations:
By using BESS, fleet operators can deploy charging stations more quickly and in locations where grid upgrades would be costly or time-consuming. This is particularly beneficial in countries like the Czech Republic, where the charging infrastructure is still developing. BESS can provide a temporary or permanent solution to grid capacity limitations, allowing for faster expansion of charging networks.
Improves charging reliability and resilience
BESS significantly enhances the reliability and resilience of EV charging operations.
Providing backup power during outages
In the event of a grid outage, BESS can provide backup power to ensure that critical fleet vehicles remain operational. This is especially important for emergency services and essential delivery fleets. In Germany, some logistics companies have implemented BESS to ensure business continuity during power disruptions.
Ensuring consistent charging availability
BESS can help maintain a consistent power supply for charging, even during periods of high grid demand or instability. This ensures that fleet vehicles are always ready for operation, improving overall fleet efficiency and reliability.
Integrates renewable energy sources
BESS plays a crucial role in integrating renewable energy sources into EV charging operations.
Storing energy from onsite generation
Many fleet operators are installing onsite solar or wind generation to power their EV charging. BESS allows excess energy generated during peak production times to be stored for use when renewable generation is low, maximising the use of clean energy.
Increasing use of clean energy for charging
By storing renewable energy, BESS enables fleet operators to increase their use of clean energy for EV charging. This not only reduces carbon emissions but can also lead to cost savings in regions with favourable renewable energy incentives. In the UK, some fleet operators have achieved up to 100% renewable energy use for their EV charging through a combination of onsite generation and BESS.
Energy storage use case for fleet electrification
From our experience, here are the main use cases for how energy storage helps assist fleet electrification for a whole range of commercial and industrial applications.
Depot facility charging solutions
Managing high power demands
Managing high power demands from multiple vehicles charging simultaneously is critically important for maximising the effectiveness. And depot charging presents significant challenges due to the high power demands of multiple electric vehicles (EVs) charging at once. BESS can help manage these demands by:
- Providing additional power during peak charging times to avoid overloading the local grid
- Smoothing out power consumption peaks, reducing strain on electrical infrastructure
A study by the National Renewable Energy Laboratory (NREL) found that BESS can reduce the peak power demand of a depot by up to 67%, significantly lowering infrastructure costs and improving grid stability.
Optimised charging schedules and energy costs
BESS enables fleet operators to optimise their charging schedules and reduce energy costs by:
- Storing energy during off-peak hours when electricity rates are lower
- Discharging stored energy during peak hours to avoid high demand charges.
A scientific report published in 2024 has shown that implementing smart charging strategies with BESS could reduce electricity costs for fleet operators by up to 65%.
Reducing local grid network constraints
By acting as a buffer between the charging station and the grid, BESS can:
- Mitigate voltage fluctuations and power quality issues
- Reduce the need for expensive grid infrastructure upgrades
The International Energy Agency (IEA) has reported that BESS can help defer or avoid up to 40% of grid investments related to EV charging infrastructure.
READ MORE: The National Highways EV Project Challenge
Considerations for installing energy storage
When implementing battery storage systems for fleet electrification, several key factors need to be carefully considered to ensure optimal performance, cost-effectiveness, and long-term sustainability.
Funding support and incentives
Various incentives and funding opportunities can significantly improve the economic viability of battery storage projects:
- Fully funded energy schemes
- Government grants and tax incentives
- Utility company programs
- Low-interest financing options
Sizing and system design
Proper sizing of battery storage systems is crucial for meeting the specific charging needs of a fleet while avoiding unnecessary costs associated with oversized systems. Factors to consider include:
- Daily energy consumption of the fleet
- Peak power demand during charging periods
- Charging patterns and schedules
Scalability for future fleet growth
As fleets continue to electrify, it’s essential to design battery storage systems with future growth in mind. This involves:
- Modular system designs that allow for easy expansion
- Oversizing initial electrical infrastructure to accommodate future additions
Evaluating return on investment
A thorough economic analysis is crucial for justifying the investment in battery storage systems. Key considerations include:
- Initial capital costs
- Potential energy cost savings
- Reduced demand charges
- Maintenance and replacement costs
Energy storage is evidently a transformative force in expediting fleet electrification across Europe. As companies shift towards electric vehicles to meet net zero emission goals and capitalise on operational cost savings, stationary BESS emerges as a vital enabler.
They effectively mitigate high demand charges, enhance charging infrastructure capacity, and ensure reliability during grid outages. By facilitating load shifting and integrating renewable energy sources, BESS not only reduces operational costs but also supports sustainable practices.
As fleets increasingly adopt these technologies, energy storage will continue to play a critical role in overcoming challenges, making it a key enabler for the rapid transition to electrified transportation in Europe.
Expedite your fleet electrification with Wattstor
We provide a highly supportive solution to the challenges of fleet electrification with our fully funded energy systems. By removing the need for upfront capital expenditure, we allow businesses to embrace the benefits of fleet electrification without the financial strain.
Our experienced energy storage specialists support a seamless transition by advising throughout the process on infrastructure and financial solutions. This holistic approach enables companies to maximise their use of renewable energy, navigate grid connection constraints, and achieve long-term cost savings.
By tackling both the financial and infrastructural hurdles of fleet electrification, we provide a clear pathway for businesses to move towards sustainable transportation.