THE SWITCH TO ELECTRIC TRANSPORT IS HERE ARE YOU READY?
With the number of EVs now on the road rapidly growing, this exposes the current development of public-facing rapid charging infrastructure to cope with the increased demand. Taxis and PHVs require far more daily charging than average drivers’ needs and most business models require access to rapid chargers.
If public-facing infrastructure is solely relied on, then convenient locations, availability, reliability and also speed and cost of charge would all be important factors to consider to make the transition viable. Many local authorities are still struggling to coordinate available funds into chargers on the ground in time to service your needs ahead of imposed clean air zones (CAZ’s) so therefore all options need to be explored - and this presents many opportunities.
So how should cab operators approach the EV opportunity? One reason companies have held off to date is uncertainty around business direction, and more importantly, around timing - due to the aforementioned public infrastructure and suitable vehicle range and costs. While it’s pretty clear that EVs are replacing petrol and diesel vehicles, investing in suitable vehicles and infrastructure now raises many questions.
What fleet strategy should you employ? Commercial Taxi / PHV fleet operations can mitigate the risk of sole reliance on public charger reliability, availability and per kWh cost with a tailored in- house strategy to minimise the need for public charging facilities.
EV fleet management is also energy management This demands a mix of solutions: • Workplace depot charging infrastructure: including rapid DC (same as public rapid chargers) enabling double-shifting cars between drivers - as a rapid charge can be done inside an hour and between shifts.
• Overnight charging using fast AC chargers to replenish vehicles ready for the next day.
• Home charging where possible to enable extremely low- peak charging tariffs available to support EV drivers - (expect to charge EVs for c.100 miles for as little as £1.40).
• Smartback office management software to measure and man- age energy use and costs across all charging infrastructure.
No-one wants to spend heavily investing on ‘stranded assets’ This is why it is so important that fleets should work in part- nership - with independent experts - who in turn work with local authorities, energy networks, charging companies, digi- tal solution providers and more - and who can gain an understanding of a fleet’s needs and develop a business model tailored to this early phase of the EV revolution, while cities manage their public networks to cope with the demand.
Building fleet infrastructure around existing demand Developing an understanding of the energy demands and
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how taxi and PH fleets will use EVs is critical in sizing, scaling and designing the right supporting infrastructure.
Outside of the home charging model: We see two models leading to distinct new market opportunities and contributing to de-risk the charging investment:
1. De-centralising and renewable energy supply - Solar and alternative clean energy generation and Battery Storage - used for balancing services. This delivers higher revenue possibilities - not only allowing 3rd party ‘guest’ drivers to use your own facilities at lower cost to public charging facilities, but also fuelling your own fleet for far less - and completely green. This can also head off complications and costs associated with grid supply upgrades, which can be onerous in cost and timeline - depending on locations.
2. A chance to define your market - a new and developing market provides great opportunities to set new market standards and consumer expectations. No longer depen- dent on forecourt fuel pricing allows a more democratised consumption of energy and an ability for creating innova- tive business and tariff solutions, including options for customers to choose a green form of cab. But to achieve this, it will be advantageous for taxi/PHV fleets to develop partnerships and relationships with an EV consultant that can design, deliver and manage what is essentially an entirely new public mobility proposition.
A once in a life-time opportunity EVs are fast approaching the moment where they redefine your market. For fleet operators, it’s a great time to re-estab- lish your name, presence and commitment to the environment and contribute to offsetting the climate crisis, while we help reduce the cost and risk and maximise your profit.
It’s worth knowing that the 2021 budget introduced a ‘super- deduction’ tax relief of 130% for company investments on plant/machinery (available until end March 2023). EVs, sup- porting infrastructure and installation costs should also be eligible for this.
EVs - if planned correctly will continue to be a more cost effective and intelligent option. Can you afford not to investigate further?
Article supplied by Tim Scrafton
THE CONNECT CONSULTANCY CONSULT
DESIGN SUPPLY INSTALL
The UK’s leading independent electric vehicle infrastructure consultancy 0161 635 6553
hello@theconnectconsultancy.com
NOVEMBER 2021
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