Here at Wattstor, we believe the greatest chance we have of transforming the transport sector is through fleet electrification supported by energy storage.
According to a 2024 report by Statista, carbon emissions from the transportation sector have remained high over the past few decades. In the mid-2010s, transportation replaced electricity supply as the single largest climate polluter, now accounting for roughly 30% of total emissions. If there was an industry that needs rapid transformation to make a significant contribution to our nation’s ambitious net zero goals then it’s transport.
In this article, our experienced energy storage specialists will be defining what fleet electrification is, the current state across Europe, the benefits and challenges for both businesses and the environment, and the practical role energy storage can play in driving this much-needed change.
Defining fleet electrification
Fleet electrification is the process of replacing traditional internal combustion engine vehicles reliant on highly priced petrol and diesel within a fleet (logistics delivery vans, HGVs, company cars, buses etc.) with electric vehicles (EVs).
This shift towards managing electric vehicles involves installing the necessary EV charging infrastructure to support their continued and uninterrupted operation – maintaining productivity levels. Fleet electrification ultimately aims to significantly reduce an organisation’s carbon emissions and lower their operating costs that have previously been attributed to the high price of fossil fuels.
European trends
Fleet electrification across Europe faces similar core challenges, yet the regulatory environment and grid constraints differ significantly between countries. In Germany, for example, the regulatory framework strongly supports electrification, with ambitious targets to have 15 million electric vehicles on the road by 2030. However, grid capacity remains a concern, particularly in rural areas. The Czech Republic, on the other hand, has been slower to adopt supportive policies, with fewer incentives for fleet electrification. This has resulted in lower EV adoption rates compared to Western European countries.
Grid network preparedness varies widely across the continent too. While countries like the Netherlands have made significant investments in charging infrastructure, others like Spain and Italy are still working to expand their networks to support widespread fleet electrification. These regional differences in policy support, grid readiness, and charging infrastructure availability create a complex landscape for fleet managers looking to electrify their operations across multiple European countries.
Despite these variations, the overall trend across Europe is moving towards increased support for fleet electrification, driven by EU-wide emissions reduction targets and growing recognition of the economic and environmental benefits of electric vehicles.
The current state of fleet electrification in the UK
As the technology continues to improve and infrastructure expands, it’s expected that the rate of fleet electrification in the UK will accelerate, contributing significantly to the country’s emissions reduction goals and sustainable transportation future. Here are the key points:
1 millionth electric vehicle registered
At the start of 2024, the UK registered its one millionth electric vehicle, marking an important milestone in the country’s transition to cleaner transportation. However, this figure represents only a fraction of the total vehicles on UK roads, indicating that there is still a long way to go in the electrification journey.
Business fleets are playing a vital role in adoption
With 50% of new car registrations in the UK being made by businesses, companies are playing a vital role in driving the adoption of electric vehicles. This statistic underscores the importance of fleet electrification in the overall transition to sustainable transportation.
Government incentives and policies
The UK government has implemented various incentives and policies to encourage fleet electrification, including grants for electric vehicle purchases and the development of charging infrastructure. These measures aim to support businesses in overcoming the initial barriers to electrification.
Adoption challenges still remain
Despite the progress, fleet operators still face challenges in electrification. These include concerns about charging infrastructure, range anxiety, and the initial costs of transitioning to electric vehicles. Addressing these issues will be crucial for accelerating the adoption of electric fleets across the UK.
The immediate benefits of electrifying the fleet
By adopting electric fleets, businesses can simultaneously reduce their operational costs, improve efficiency, and demonstrate their commitment to environmental sustainability. The combination of financial benefits and positive environmental impact makes fleet electrification an attractive option for forward-thinking companies.
Half the business’s fleet running costs
For businesses considering switching to electric vans, there are significant savings. For example, replacing a diesel Ford Transit with an electric Ford E-Transit could save around £4,125 annually in fuel, maintenance, and tax. Additionally, the E-Transit is exempt from London’s Ultra Low Emission Zone charges, saving about £3,125 per year. Over five years, these savings can add up to approximately £11,125, making the electric option more cost-effective and beneficial for companies operating in urban areas like London.
Additionally, EVs offer significant savings on repairs and maintenance. Unlike traditional vehicles, electric vehicles don’t require oil changes, air filter replacements, or new components like fans, timing belts, head gaskets, or spark plugs. This is because EVs have a single battery unit rather than the numerous moving parts found in combustion engines.
On average, maintenance costs for electric vehicles are about 30% lower than those for their combustion engine counterparts.
Significantly reduce greenhouse gas emissions
Electric vehicles (EVs) offer a powerful way to lower a business’s greenhouse gas emissions, as they produce zero tailpipe emissions, directly reducing air pollution and supporting efforts to combat climate change.
EVs also help cut the company’s carbon footprint; even when factoring in battery production, they are estimated to be roughly 50% better for the environment than traditional petrol or diesel vehicles. By eliminating harmful pollutants such as nitrogen oxides (NOx) and sulphur oxides (SOx), EVs significantly boost air quality, especially in urban areas, creating cleaner and healthier environments.
For businesses, transitioning to electric vehicles also aligns with corporate sustainability goals and enhances brand reputation by demonstrating a strong commitment to a greener future.
The barriers of fleet electrification
Fleet electrification presents numerous opportunities for businesses, but the transition is often hindered by significant challenges, particularly the capital expenditure costs and grid connection constraints. Understanding these obstacles and leveraging innovative solutions can facilitate a smoother transition to sustainable transportation.
Capital expenditure costs
Electric vehicles (EVs) generally have higher purchase prices than conventional vehicles, and developing a comprehensive charging infrastructure can be costly. Many sites require electrical upgrades to support EV charging, further increasing the financial burden. These high upfront costs can deter businesses, especially small and medium-sized enterprises with limited capital.
Grid connection constraints
More and more fleet warehouses and distribution centres have adopted renewable energy strategies, such as solar PV installations, to enhance sustainability. However, without energy storage solutions to support, they’re constrained in maximising on-site generation due to limited grid connections. This limitation prevents them from fully maximising the renewable energy they generate, as excess energy cannot be stored for use during peak demand periods.
Overcoming the barriers 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.