Planning a Fleet Transition

Overview

Vehicle fleets offer a unique opportunity for electrification because, unlike workplace or public charging, fleet operators own both the electric vehicle (EV) charging infrastructure and the vehicles themselves. This dual ownership allows fleet operators to bypass the common challenge of deciding whether to prioritize vehicles or charging infrastructure. This setup also eliminates uncertainties regarding the value proposition of EV and charging infrastructure investments, making cost-benefit analyses more straightforward. Furthermore, fleets have predictable usage patterns, unlike personal vehicles, which facilitates easier grid planning and cost recovery for EV charging.

However, fleet vehicles typically spend far more time in operation compared to private EVs with less demanding duty cycles. As a result, fleet operators may need to invest more upfront in direct current fast charging (DCFC) stations or dedicated Level 2 chargers for each vehicle. While these costs are higher, they are quickly offset by savings on fuel and maintenance, especially in high-usage scenarios. Although fleet charging stations are usually not available to the public, policy incentives could encourage broader accessibility. Additionally, fleets must consider the potential for accelerated EV battery degradation. Planning for battery second use, re-use, and recycling is essential for managing the total cost of ownership over the vehicle's lifespan.

While buses are frequently the focus of electrification efforts, other fleet types also present strong opportunities for cities and governments. Taxi and ride-share fleets, two- and three-wheelers, and commercial delivery or shipping fleets each offer distinct advantages in transitioning to electric power. In the U.S., heavy-duty vehicles (HDVs) make up just 5% of the vehicles on the road but account for nearly 30% of on-road fuel consumption and emit almost 25% of total transportation greenhouse gas (GHG) emissions. Therefore, HDVs are a critical vehicle type to consider transitioning to cleaner fuels and electric modes. Table 1 provides an overview of fleet types that are particularly suitable for early adoption of electric technologies.

Table 1. Fleets That Are Most Compatible with PEVs, by Fleet Attribute (Foundations of an Electric Mobility Strategy for the City of Mexicali).

Planning a Fleet Transition - Table 1.PNG

For example, the U.S. Agency for International Development (USAID) and National Renewable Energy Laboratory (NREL) Partnership supported Mexicali's transition of its taxi fleet to plug-in electric vehicles (PEVs). Although this transition faced performance challenges due to high ambient temperatures, targeted strategies are being implemented to extend vehicle range and improve performance. By diversifying fleet types beyond buses, cities can broaden their electrification efforts while addressing the unique needs of each fleet type.

These factors make fleet electrification an advantageous opportunity for governments and cities looking to pilot EV transitions through city-owned buses or government vehicle fleets. Currently, the USAID-NREL partnership is helping countries such as Mexico, Colombia, and the Lao People’s Democratic Republic (PDR) to enhance their understanding of the technical and policy requirements needed to electrify their fleets.

Among various fleet types, Battery Electric Buses (BEBs) are particularly crucial in the shift to sustainable transportation. BEBs, which come in various models such as urban transit buses, intercity buses, and school buses, offer significant benefits over traditional diesel buses, including lower emissions, reduced operating costs, and quieter operation. However, successful deployment of BEBs requires meticulous long-term planning and the consideration of multiple factors.

This long-term planning should include developing clear goals, identifying key performance indicators (KPIs), engaging stakeholders, and securing funding sources. Once a comprehensive plan is in place, it is essential to evaluate available technology and route options that align with these goals. Decisions surrounding electric bus planning and deployment are tightly interwoven across various parameters, such as bus and battery selection, route determination, and charging strategy. For example, battery size and charging system choice are mutually dependent, with the size of the battery influencing the choice of the charging system. There are several charging options, such as depot charging, on-route charging, and battery swapping. Each method has its own benefits, challenges, and implications for the overall design of a BEB project.

Through the USAID-NREL Partnership, typical in-country projects include detailed route analyses to assess range and performance requirements, along with identifying operational factors that may affect other BEB-related decisions, such as selecting an optimal charging methodology with minimal grid impact. Table 2 outlines key bus route analysis characteristics that are considered in these projects.

Table 2. Sample Bus Route Analysis Variables (Electrifying Transit: A Guidebook for Implementing Battery Electric Buses).

Planning a Fleet Transition - Table 2.PNG

Key Actions for Developing a Fleet Transition Strategy

  • Develop Data Collection and Implementation Plans: Effective deployment of electric fleet vehicles requires upfront planning. Identifying data for suitable vehicle routes based on distance, speed, and stop frequency, and determining optimal charging strategies—whether through a depot or on-route fast charging—are essential. Engaging stakeholders early and understanding electricity rates and diesel fuel prices are also crucial for a successful fleet transition. Also, implementing geolocators and telematics to track vehicle movements and usage patterns provide valuable data to guide vehicle purchases and planning EV infrastructure.
  • Select Appropriate Technology and Infrastructure: Choosing the right technology involves evaluating battery sizing for each vehicle type and charging methods to meet performance requirements. Assessing the existing grid infrastructure and planning for any necessary upgrades ensures that the charging infrastructure can handle peak loads and integrates seamlessly with the current system.
  • Assess Economic Impacts: Fleets are sophisticated investors that look at the total cost of ownership of their assets. Understanding the costs associated with electrification of fleets, including capital expenses, incentives, and maintenance, is vital. Analyzing the total cost of ownership, including potential savings on fuel and maintenance compared to conventional buses, helps in making informed financial decisions and justifying investments in such EVs. Incorporating EV battery circularity into vehicle lifetime considerations has become a high-demand topic among USAID-NREL country partners.
  • Plan for Operational and Maintenance Needs: Operational success depends on proper training for drivers and maintenance staff, and the adaptation of facilities to accommodate electric fleets. Addressing these needs along with training and workforce pipeline development needs will ensure the longevity of the fleet.

In Mexico, the USAID-NREL Partnership supported transportation stakeholders to address bus fleet transition challenges by focusing on the unique needs of Mexico City and León. The Partnership's technical analysis highlighted that the frequent bus stops and slow speeds of bus routes in these cities are well-suited for BEBs, offering substantial efficiency gains and emissions reductions. By addressing barriers such as high upfront costs and infrastructure needs, the USAID-NREL Partnership developed tailored solutions that align with local conditions and requirements. This comprehensive approach not only ensures the technical and financial viability of BEB deployment but also sets a strong example for successful fleet transitions in other regions.

Read more about USAID-NREL Partnership projects here and explore how we are driving innovative solutions in clean energy and sustainable transport.

Resources

Road to Zero: Research and Industry Perspectives on Zero-Emission Commercial Vehicles

NREL, 2023

This report provides an overview of the status, opportunities, challenges, and uncertainties of various technologies to decarbonize medium- and heavy-duty vehicles (MHDVs), including battery-electric vehicles, hydrogen fuel cell vehicles, and sustainable liquid fuels, highlighting the significant impact of MHDVs on greenhouse gas emissions and air pollution despite their small numbers. It also discusses the supporting infrastructure and future prospects for zero-emission vehicles, as well as the barriers and uncertainties surrounding fleet decisions, vehicle operation, manufacturing, and future fuel and technology trends.

Toward Sustainable Fleet Transitions

Enel, 2022

This report brings together lessons learned from EV specialists, energy providers, fleet owners and managers, and circular economy experts. The aim of this document is to catalyze, streamline, and accelerate fleet transitions.

Electrifying Transit: A Guidebook for Implementing Battery Electric Buses

USAID-NREL Partnership, 2021

This guidebook provides comprehensive information for stakeholders on deploying BEBs, covering benefits and barriers, technical basics, charging infrastructure, grid interactions, operation and maintenance, costs, funding options, safety standards, and project execution factors.

Battery Electric Bus Deployment Considerations in Developing Countries

USAID-NREL Partnership, 2020

This fact sheet steps through the six essential considerations for deploying BEBs: implementation planning, technology selection, economic impacts, charging infrastructure, operations, and maintenance.

Financial Analysis of Battery Electric Transit Buses

NREL, 2020

This report evaluates the cost-effectiveness of BEBs compared to diesel buses using the Vehicle and Infrastructure Cash-Flow Evaluation for BEB (VICE-BEB) model, providing insights into the net present value (NPV) and payback periods for BEB investments, and offering guidance on prioritizing fleet parameters and making strategic decisions to support the transition to electric transit.

Technical Evaluation of Battery Electric Bus Potential in Mexico City and Leon, Mexico

USAID-NREL Partnership, 2020

This study assesses the feasibility of BEBs in Mexico City and León, highlighting their potential to reduce emissions, improve air quality, and support economic development. Findings show that BEBs are more efficient and environmentally friendly compared to diesel buses, particularly on routes with frequent stops and slow speeds, which makes them a promising option for urban transit improvements.

If you are interested in collaborating or learning more about the USAID-NREL Partnership's international sustainable transport and electric mobility initiatives, please contact us to learn more about partnership opportunities.

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