Costly mistakes in depot electrification projects and how to avoid them

Oct 23, 2024 · 6 min read · blog

The transition from a traditional internal combustion engine fleet to an electric fleet offers significant advantages, such as reduced emissions, lower fuel costs, and the potential for long-term savings. However, the shift to electric vehicles is not without its challenges, and many fleet managers quickly discover that this transition is far more complex than simply replacing vehicles.

While initial steps, such as selecting the right electric vehicles, might appear straightforward, the process of depot electrification requires meticulous planning to avoid unexpected costs, delays, and operational disruptions.

In this post, we explore some of the most common mistakes that can occur during depot electrification projects. By understanding these challenges and implementing effective strategies to address them, fleet managers can ensure a smoother and more cost-efficient transition to electric vehicles.

1. Rushing into procurement without comprehensive planning

  • Mistake: Starting procurement for chargers and vehicles before having a detailed electrification strategy. Many fleet managers rush to purchase electric vehicles and charging equipment without fully assessing the fleet’s specific needs and infrastructure requirements. This often happens after selecting the electric vehicles, but before developing a comprehensive plan for electrification.
  • Consequences: This approach can lead to delayed installation, unforeseen costs, and charging solutions that do not adequately support fleet operations. Without careful planning, equipment may be incompatible with existing infrastructure or insufficient to meet charging demands, causing operational disruptions.
  • Solution: Develop a phased electrification plan that includes a detailed analysis of infrastructure needs, charging logistics, and budget considerations. Align procurement timelines with infrastructure readiness to ensure a smooth transition. We discussed the importance of evaluating vehicle usage and choosing the right electric counterparts in detail in our previous blog post, which serves as a crucial first step before moving forward with procurement.

2. Underestimating the installation time and costs for charging infrastructure

  • Mistake: Assuming that charging infrastructure can be installed quickly and inexpensively. Setting up charging stations often involves more than just installing equipment; it requires thorough site preparation, possible electrical capacity upgrades, and navigating the permitting process. These elements can add significant time and expense to the project.
  • Consequences: Installation delays can disrupt the electrification schedule, causing fleet managers to rely more heavily on public charging, which is often expensive and less convenient. This can also result in unplanned downtime for vehicles waiting to be charged, affecting operational efficiency.
  • Solution: Conduct a comprehensive site survey early in the planning phase to identify potential challenges, including electrical limitations and construction requirements. Collaborate closely with utility companies to plan any needed upgrades, allowing for realistic timelines and budgets to avoid unexpected delays.

3. Misjudging vehicle range and performance in real-world conditions

  • Mistake: Relying solely on WLTP or other standard range estimates. Standard range figures, such as those from the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), often do not reflect real-world driving conditions. Factors like highway speeds, urban stop-and-go traffic, and cold weather can significantly reduce an electric vehicle's range compared to advertised figures.
  • Consequences: When range estimates fall short, operational plans become unpredictable, leading to range anxiety among drivers, unplanned vehicle downtime, and a heavier reliance on costly public charging options. These issues can disrupt fleet schedules and increase operating expenses.
  • Solution: Use simulation software to model expected vehicle performance under various driving conditions or research real-life range data from other fleet operators with similar usage patterns. This approach provides a more accurate understanding of how vehicles will perform in specific environments, allowing for better route planning and reducing the risk of operational disruptions.

4. Resorting to expensive quick fixes due to poor initial planning

  • Mistake: Installing costly DC fast chargers or relying heavily on public chargers as a solution to inadequate infrastructure. When the initial charging infrastructure is not properly planned, fleet managers may resort to quick fixes like deploying expensive DC fast chargers or frequently using public charging stations. These reactive measures often address immediate issues without solving the root problems.
  • Consequences: This approach can lead to significantly higher costs and over-reliance on the undependable public charging network. Over time, reliance on costly quick fixes can drain the budget, making it harder to invest in long-term infrastructure improvements.
  • Solution: From the outset, prioritize a balanced charging infrastructure that includes a mix of AC and DC chargers, strategically placed to meet the fleet's operational needs. This should involve a detailed analysis of charging requirements and future scalability, allowing the infrastructure to grow in step with the fleet’s expansion while keeping costs manageable.

How Volteum can help you avoid these mistakes

Transitioning to an electric fleet comes with a variety of challenges, from choosing the right vehicles and installing charging infrastructure to managing range limitations and operational changes. As this post has highlighted, mistakes in planning, procurement, and real-world performance assessments can significantly impact the success of depot electrification projects. However, with the right strategies and tools, fleet managers can avoid these challenges and achieve a smooth transition to electric vehicles.

At Volteum, we support companies throughout their entire electrification journey, from the initial planning stages to the ongoing operation of a fully electric fleet. Our Electric Fleet Planner helps fleet managers set up cost-effective electrification strategies and optimize charging infrastructure. With features such as our advanced EV Simulation tool, you can accurately model real-world driving conditions, including weather, topography, and traffic, to make data-driven decisions about vehicle selection and route planning. Moreover, our comprehensive EV Database also provides up-to-date information on electric vehicles, ensuring you choose the best options for your specific needs.

For companies already operating electric vehicles, our Electric Fleet Operations software simplifies daily fleet management by forecasting energy needs, optimizing routes, and scheduling charging to minimize costs. With Volteum, you can confidently navigate the electrification process, reduce operational disruptions, and unlock the full potential of electric vehicles.

If you need personalized assistance in developing your fleet’s electrification strategy, contact us via the link below to get started — our experts are here to help you with any questions.

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