Navigating the Transition to a Mixed-Energy Fleet: How Telematics Plays a Critical Role

As the world begins to rely more and more on electric vehicles (EVs), fleets across various industries are navigating the complexities of managing both internal combustion engine (ICE) vehicles and electric vehicles. This transition is not happening overnight; many organizations are operating "mixed-energy fleets," which brings new challenges in balancing operational efficiency with sustainability goals.

At Sawatch Labs, we understand that fleet managers must balance multiple priorities—maintaining operational efficiency, meeting sustainability goals, complying with regulations, and preparing for the future of fleet electrification. Many are also seeking ways to improve cost management in the face of rising operational expenses. Whether you’re managing a fleet of ICE vehicles, EVs, or both, the key to success is data-driven decision making—and that’s where telematics comes in.

Why Fleet Electrification Isn’t a Simple Switch

Electrification is happening, but it’s often a gradual process. The challenge of integrating EVs into operations while maintaining efficiency and avoiding downtime requires deliberate planning. It also introduces an entirely new set of obstacles. You’re no longer managing a uniform fleet where all needs can be met with the same plan. Instead, you’re balancing two very different technologies, each with very different procedures.

These challenges include not only operational adjustments but also infrastructure planning, energy management, and route optimization. Navigating this shift requires a strategic approach, but managers are often unfamiliar with the breadth of skills required to manage an electric fleet successfully. When organizations begin electrification without a plan, they often face frustrating roadblocks. as there are numerous factors to consider, from upfront capital expenditures to ongoing maintenance and energy costs.

The Challenges of Managing Mixed-Energy Fleets

Research commissioned by WEX and conducted by Frost & Sullivan indicates that more than 60% of fleets in the United States expect to have at least 25% EVs by 2030. Fleets might add EVs alongside petroleum vehicles to meet carbon reduction goals, lower ownership costs, or stay ahead of market trends. However, regardless of the reason, the transition to a mixed fleet comes with a complicated set of challenges. 

Each vehicle type—ICE or EV—has unique requirements for fueling, energy management, and maintenance, which increases the complexity of fleet operations. As operational complexity grows, managers must address the following concerns if they want to make a smooth transition:

• Route optimization: While some EVs and ICE vehicles can operate along the same routes without issue, the availability of electric vehicle supply equipment (EVSE) and lengthy charge times call for orchestrated route optimization.

• Energy management: Although renewable, electricity is a finite source that must be managed effectively. Knowing when your vehicles need to charge and how many kilowatt hours will be consumed is vital for ensuring an adequate supply of energy.

• Tracking fuel and charging costs: Managing expenses for mixed-energy fleets can be complicated, as fleet operators must track both fuel purchases for ICE vehicles and electricity costs for EV fuel purchases. Ensuring accurate tracking and reimbursement across these two different energy sources adds an extra administrative burden.

Bridging the Gap with Data-Driven Insights

Telematics and advanced payment solutions are essential for addressing the operational challenges of managing a mixed-energy fleet. Here’s how they can help solve key issues:

Route Optimization

Balancing EV and ICE routes requires careful planning due to the limited availability of electric vehicle supply equipment (EVSE) and the longer charging times for EVs. Telematics systems can provide real-time data on vehicle locations, charge levels, and available charging stations. By integrating this data with route planning software, fleet managers can ensure EVs are scheduled for routes that align with charging availability, minimizing downtime. Meanwhile, telematics can optimize ICE routes to avoid traffic and reduce fuel consumption. This combined data-driven approach ensures efficient utilization of both vehicle types.

Energy Management

Effective energy management is critical for mixed-energy fleets. Telematics platforms offer insights into how much energy each EV consumes, when vehicles need to charge, and how to optimize charging schedules to reduce costs. For instance, EVs can be programmed to charge during off-peak hours, when electricity rates are lower. Telematics systems also allow fleet managers to monitor electricity consumption across all vehicles, making it easier to predict demand and plan accordingly. With the right data, you can manage energy consumption more effectively, avoiding overuse or unnecessary expenses.

Tracking Fuel and Charging Costs

Managing expenses for mixed-energy fleets can be particularly challenging. Whereas ICE vehicles primarily refuel at the depot or at public gas stations that accept a wide variety of payment options, EV charging isn't as straightforward. In addition to public charging stations with limited payment options, electric vehicles may also need to charge at employees' homes. To solve these issues, many fleets turn to fuel cards that automatically track fuel and electricity costs across both ICE and EV vehicles, many fleets turn to fuel cards that automatically track fuel and electricity costs across both ICE and EV vehicles, providing transparent and accurate per-vehicle reporting.

The Future of Fleet Management: Unified Solutions for Mixed-Energy Fleets

As we move away from petroleum-based fuel, fleet management solutions must evolve to meet these new demands. Unified payment systems, like those offered by WEX, like those offered by WEX, simplify the management of charging and fuel expenses across mixed-energy fleets, ensuring seamless operations.

Forward-thinking companies are also beginning to consider what the future holds for fleet management, including the potential for autonomous EVs that self-charge. Advanced payment platforms capable of handling driver and vehicle authentication will be essential as this technology becomes more prevalent.

Fleet electrification is no longer on the horizon—it’s already happening. The key to navigating this transition lies in utilizing the right telematics solutions, which empowering fleet managers to overcome the unique challenges of mixed-energy fleets. These tools help achieve sustainability goals without sacrificing day-to-day efficiency. At Sawatch Labs, we offer the data and insights needed to ensure your fleet's transition is smooth and cost-effective, keeping operations running at peak performance.