Fleet Electrification in Australia — Lessons Learnt

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Many Australian businesses and government agencies are turning to fleet electrification to minimise their carbon footprint and fuel costs. The Australian Renewable Energy Agency (ARENA) is co-funding some of these projects under their “Driving the Nation” program, and recently released “Lessons Learnt” reports to chronicle progress. I will attempt to summarise these and pick out the common threads, in the hope that those further back in the pack will not have to learn the same lessons the hard way.

From a brief skim, it appears that a lack of knowledge of the differences between electric driving and diesel-powered vehicles has led to some inappropriate decisions. Another recurring theme is inadequate local government decision making processes that have delayed project implementation. Education of all stakeholders is referred to frequently. Assumptions did not match the real-world performance of fleet electrification.

Australian National Couriers (ANC) is being co-funded (to the tune of AU$12.8 million) to purchase 112 zero-emissions vehicles and charging stations by 2026 and to convert 30% of their total fleet to electric by 2028. You can watch the video here:

ANC has added 65 new electric vehicles to their fleet so far under Project Spark, starting with the deployment of three generation-one SEA Electric trucks adapted for ANC’s last-mile delivery. The configuration of these vehicles improved on-road efficiency, but made it difficult for at-home charging.

Contractors report cost savings, driver comfort, and customer satisfaction. They also state that there are many more chargers around, so they have no difficulty completing their metropolitan runs now. ANC has added the LDV Cab Chassis and the JAC N90 to the fleet. Hear their comments here:

And what lessons have they learnt along the way? The contractors working for ANC faced the challenges of high upfront cost of EVs, and accessing affordable financing and insurance for their vehicles. There was also some uncertainty around maintenance and resale value. Initially, there were charging infrastructure gaps caused by delays in grid upgrades, landlord approvals, and vehicle size restrictions. The expected range of the vehicles was reduced by 25% due to “real world operational demands.” Vehicles in the program reached their weight limits without utilising available cargo space, reducing delivery efficiency. Sometimes this was up to 50% of capacity. ANC contractors were initially concerned about EV reliability and range. Some clients were reluctant to buy in for the same reasons.

ANC’s key learnings can be summarised as: the need for financing models that are tailored for EVs; use of bulk purchasing agreements; the need for custom-built EVs for last-mile delivery supported by DC fast chargers at depots. Range anxiety can be reduced and confidence built by positive hands-on driver training. There’s a need for education and advocacy campaigns for clients.

It should be noted that the range of models for this work is quite limited in Australia. I would expect that within a very short time period, it will be easier to buy an electric delivery van more suitable for the needs of last-mile delivery contractors at a more reasonable price, leading to an escalation in fleet electrification.

ANC has learnt that vehicle range is reduced by climate control, tail-lift operations, and harsh braking. (What about regen?) These factors reduced the LDV Cab Chassis’ range by about 25%, and the JAC N90 by 20%. Their assumed ranges were 200 km and 150 km, respectively. That’s a significant loss. This has led to changes in route planning and the implementation of midday charging strategies.

However, it was noted that “EVs contributed positively to community relations, with quieter operations and lower emissions improving ANC’s social license to operate. The cleaner image enhanced brand perception.”

Another logistics company, Zenobē, proposed the construction of an offsite charging hub consisting of 22 separate 120 kW ZEROVA dual-gun DC chargers. It was delayed due to a government policy requiring “surveys and certifications associated with the design of the site” and developmental approval. It was assumed that the project would be exempt, as are bus depots, car parks, service stations, and highway service centres. However, truck depots are not included in the definition of exempt development. Policy advocacy is ongoing at both a council and state level.

Here’s another case of government regulations not keeping up with the progress of transport electrification. Then, Zenobē was informed by council that there was a proposal to build a cycle path through their proposed site!

This has pushed back Zenobē’s planned deployment of 60 Foton electric delivery vehicles for fleet electrification. The Foton T5 comes with an 82 kWh CATL battery (4.5T GVM) and was to be deployed by Woolworths supermarkets for five years. It is worth noting that all new Woolworths stores in Australia are installing EV chargers. Hopefully these can be used by Zenobē’s T5. “Zenobē’s energy modelling shows a 500kVA grid connection was required to support the 60-truck fleet and ancillary power needs.”

Meanwhile, in Melbourne, Victoria, seven city councils are working together to electrify their fleets. Called the Western Alliance for Greenhouse Action (WAGA), they have secured a grant from ARENA and expect to provide critical knowledge on the application and rollout of EVs in the local government sector. “The Project comprises the procurement of light and heavy battery EVs and the installation of charging infrastructure at municipal depots and offices (and supporting electrical and civil works) by the partnering councils.”

So far, they have learnt the necessity of keeping everyone in the loop. “Challenges included low acceptance of EVs due to fleet teams’ natural risk aversion and negative past experiences, such as premature breakdowns.” (One council had a heavy-duty EV break down. “Moreover, some key council decision-makers (low and/or mid-level management) were not sufficiently consulted during the concept and design phases.” Lessons learned: Secure executive endorsement early. Identify and engage. Prioritise change management. Communicate carefully.

There is a need to plan for worst case scenarios — particularly around charging needs and the infrastructure to support it. Councils’ needs are exacerbated during climate events. “For example, during a severe winter storm cleanup, council vehicles, such as trucks, may need to operate for extended hours and cover longer distances.”

“In the new and rapidly evolving EV environment, the expectations, understanding and knowledge of internal stakeholders (vehicle users, operations staff, project managers, executive leaders) and external consultants and advisers are based on a significant degree of uncertainty. This can lead not only to concerns about future aspects of the Project but actual mistakes in specifications.”

WAGA councils will move towards the commencement of electrical and civil works at chosen sites, the selection and purchase of electric vehicles, and the installation of charging infrastructure.

In Western Australia, ARENA is funding a project to address the current barriers to EV adoption and subsequent fleet electrification across of 139 local governments. These bodies consist of 1,215 elected members and approximately 22,600 local government employees. The project is facilitated by WALGA — the West Australian Local Government Association. “WALGA is an independent, membership-based organisation representing and supporting the work and interests of Regional and remote Local Governments.”

WALGA is overseeing the procurement and installation of 105 units of electric vehicle supply equipment (EVSE) — dual ports: 83 x AC and 22 x DC — for 22 local governments and 129 BEVs to replace existing petrol and diesel vehicles at a cost of $7.68M. ARENA is providing $3.51M and the WA government $1M. Total project value: $12.26 million. Over 70 site locations are involved.

Remote local governments face unique challenges to support the uptake of EVs. Grid upgrades are markedly higher than metro local governments. Through this project, WALGA aims for an aggregated approach in procuring vehicles and infrastructure. Over the past two years, WALGA has also identified barriers that need to be addressed. These include regulatory complexities. “Collaborating with 22 Local Governments and State Government Departments has been a complex endeavour, as each entity operates with its own internal processes, policies, and timelines.” There is a need for alignment and tighter collaboration to ensure aggregation of supply. Some local government agencies did not use the successful tender suppliers.

Insufficient communication with internal stakeholders about charger installation schedules led to “Stop Work” orders. “There have been several instances where work had commenced or was about to commence, and the EV Charger installation team was instructed to stop work. This occurred because a Local Government employee, who was not involved in the project planning stage, was not informed that the works were taking place. This has resulted in delays to the installation process of EV Chargers.” Pro tip: Enhance communication.

Timelines need to be modified to meet the goals. “For example, Western Power (Western Power is a Western Australian State Government owned corporation responsible for building, maintaining and operating an electricity network) allocates over 12 months to complete a project, whereas the installation of EV chargers needs to be processed within a couple of months.” Other timelines may need to be extended to accommodate the complexity of collaborating with so many stakeholders.

WALGA reports a positive shift in the perception of BEV and EV charging usage across fleets and local governments, leading to larger and more prominently located fleet areas and increased willingness of local governments to allow public use and engagement.

“Additionally, Dynamic Load Management was implemented across Local Government participant sites, allowing for real-time management of peaks in electrical load. This was used in conjunction with the charging equipment and a dynamic check meter installed to the incoming site supply feed, facilitating flexibility and allowing the utilisation of solar feed-in that many sites have installed.”

WALGA presented two case studies showing that close analysis and flexibility led to creative ways to solve problems. At one site, it was thought that a switchboard replacement would be necessary to accommodate EV charging and the conversion of a gas chiller to electric. This was avoided by the use of dynamic load management and the incorporation of solar feed-in. At another site, the DC charger supplier went into receivership and another supplier had to be found. This was facilitated by the installer.

The Australian government is to be congratulated for this forward-thinking planning through ARENA. You can read about another of their projects here. Those who have taken up the challenge of fleet electrification are showing a great deal of persistence and innovative thinking in identifying and overcoming the roadblocks. It appears we are entering a Brave New World and there aren’t any maps, just pioneers.

I look forward to more “Lessons Learnt” reports with advice on how to proceed productively. In the words of ANC, “The future of last mile delivery is electric, and we couldn’t be more excited!”