Takeaways From RE+ 2023: Fleet Electrification Strategies
Every year, representatives from major clean energy sectors such as storage, electric vehicles (EVs), microgrids, and more gather at RE+ to showcase the latest developments in the industry. The exposition spans four days and is the largest renewable energy event in North America. This year, Mary Till, Director of Business Development and David Fuchs, Business Development Manager at Sawatch Labs, joined 40,000 other clean energy professionals as they met in Las Vegas to explore the latest in clean energy solutions. The event provided insights into fleet electrification strategies that help mitigate the total cost of electrification while meeting the growing needs of expanding EV fleets.
Revenue Opportunities with Vehicle-to-grid
People tend to think of EVs as machines that only consume electricity, but energy can flow both ways. Vehicle-to-grid technology (V2G) provides an opportunity for EVs to dispatch electricity back to the grid during periods of high demand. Some utilities are offering pilot programs that allow fleet managers to capitalize on EVs during dwell periods, paying per kWh returned to the grid.
If done properly, V2G technology will become a way to increase resiliency and provide an additional revenue stream for electric fleet. EVs will be treated as a distributed energy resource, but technology and interconnection standards will be a big key to the success of V2G. Nonetheless, the opportunity for EVs to play a key role in balancing the grid is an exciting trend to keep an eye on.
Charging as a Service (CaaS) & Fleet as a Service (FaaS)
Between procuring EVs and installing electric vehicle supply equipment (EVSE), the upfront capital cost of electrification projects can be prohibitive. While tax credits and other government incentives can help offset these expenses, fleet managers may still find electrification costs difficult to stomach during the first few years. In the age of subscription-based services, however, solutions have appeared that make meeting electrification needs more attainable.
Two subscription-based models for electrification include Charging-as-a-Service (CaaS) and Fleet-as-a-Service (FaaS). These arrangements provide solutions that minimize or even eliminate upfront capital expenses. The options may include vehicle leasing, land acquisition, EVSE equipment and operations management. These options serve as excellent, lower-risk pathways for fleets with limited upfront resources to pursue electrification.
Meeting EVSE Needs
As a larger number of fleets move forward with electrification projects, the demand placed on the grid increases. Some utilities are experiencing constraints in providing timely upgrades needed for EVSE which has resulted in fleets and utilities turning to other partners and technologies to meet their needs. Off-grid generation methods, such as renewable energy paired with battery storage technologies, are helping to meet the needs of expanding EV fleets.
Fleet Electrification Strategies
Electrifying a fleet can be a challenge filled with high costs and lengthy procurement periods. Moving forward with the fleet electrification strategies discussed above may help reduce costs while providing potential revenue streams. While implementing these strategies will help improve your chances of success, a fleet electrification strategy that isn't informed by high-fidelity data leaves your project vulnerable to costly guesswork. At Sawatch Labs, we use EV telematics to collect granular data that gives your fleet a blueprint for success. Contact us today to see how we can help you carry out fleet electrification strategies with confidence.