How much further can electric take us?

Logistics UK recognises that members and industry are concerned about how depot charging is enabled and funded, how the public electric vehicle (EV) chargepoint network can be used by large vans and trucks, and what fiscal support can be provided to support decarbonisation.

On 11 May, Logistics UK released its 2023 EV Report setting out operators’ experiences so far and looking at how to address the remaining challenges.   

“Vehicle operators are responding to the challenge of decarbonising their fleets and although questions remain regarding the most appropriate methods for decarbonising larger commercial vehicles, battery electric proves a viable solution for vans and lighter commercial vehicles,” says Denise Beedell, Senior Policy Manager at Logistics UK.

“Research shows that at the end of 2022, there were over 42,000 plug-in vans on UK roads, however, given that there are 4.63 million vans registered and only a 0.6% increase in usage since 2019, industry still has a long way to go.”  

ELECTRIFIED FLEETS

One of the main challenges for logistics businesses looking to electrify their fleets is the uncertainty surrounding power supply infrastructure and how it will be implemented, as well as both the availability and accessibility of public chargepoints.

“While recent changes to the way local grid network reinforcements are paid for are encouraging, the reality for operators is that electrification is still going to result in substantial costs,” continues Beedeell, “with operators already reporting costs between £100k and over a £1million to transition their fleets and increase the power supply required.”  

FINANCIAL STRAIN

In addition to recent rises in inflation, an increase in total vehicle operating costs and volatile energy prices, these additional decarbonisation costs create further financial strain for operators.

“Industry is ready and willing to invest and play its role in the transition to a greener economy,” insists Beedell. “However, to do so requires fiscal support from government in the form of grant and tax allowances for capital investment.

“Additionally, Logistics UK is calling for an EV charging and refuelling infrastructure roadmap designed in collaboration with business to work for logistics vehicles, backed with clear guidance and incentives for local authorities.”

WIDESPREAD RECOGNITION

“Logistics UK is encouraged to see widespread recognition that adequate power supplies and public charging networks being fit for use by commercial vehicles are key to successfully electrifying fleets,” continues Beedell.

“And we believe that forging closer relationships between commercial vehicle operators and energy suppliers will be vital, as distribution network operators (DNOs) need to have a much greater understanding of where electric vehicle charging will be required and when.”

The business group is also urging government to provide transparency on available grid capacity and a common service agreement amongst DNOs for connections. 

PRAGMATIC ADAPTATION

While there remain challenges to uptake, the report demonstrates that those who have operated EVs for some time have recognised that like-for-like replacement of existing diesels is not always possible and have taken a more pragmatic approach in adapting their operations to work within the capability of the EVs available.

“Logistics is an industry that thrives on its ability to adapt,” says Beedell, “with 59% of respondents that have already transitioned reporting a good response from their drivers to operating EVs. This is encouraging feedback, and with 58% of the respondents who have introduced EVs into their fleets having done so in the last two years, it shows that there is an acceleration towards electric vehicles.

“With sufficient support from government – and closer collaboration between government and industry – we could see an even larger uptake rate in the coming years.” 

*www.logistics.org.uk/campaigns

Published On: 01/06/2023 12:00:00

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