maximizing the roi of fleet electrification

Maximizing the ROI of Fleet Electrification


We’re on a Mission…

1. Get more EVs out there faster

2. Make the EV ownership experience better

The Connected Car Toolset

Scale your EV fleet with confidence

Manage your EV fleet effectively 1 2 3 Optimize EV charging

Today’s Agenda


We’re on the dawn of the EV era…


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Today

Steep increase in CAFE standards are leading to: More plug-in electric vehicles from OEMs

Higher vehicle purchase prices but lower operating costs

Fuel Economy Standards (CAFE)

+27 MPG (double in 12 years)


Turning off the light?

(Behavioral Change)

Installing LED bulbs?

(Technological change)

If you were an energy conservation manager and were compensated based on

kWh saved, which strategy would you allocate your budget towards?

Energy Savings Analogy



Today’s Agenda


The Rubik’s Challenge

Integrating EVs can be a lot like solving a Rubik’s cube. If you know

what you’re doing, you can have it solved in 4.9 seconds. If you don’t…

… I’m sure you’ve been there.


(1) TIME

Will adopting EVs require more of my

already lacking, time?

How much time will I have to allocate for operator/mechanic

training?

(2) MONEY

Will adopting EVs require more of my

already lacking, budget?

Will I save enough fuel to make up for the premium capital

cost of EVs?

(3) KNOWLEDGE

How will EVs work in my fleet?

What type of charging

infrastructure will I need?

Which EVs are best for my fleet?

Using traditional approaches, all of the answers to these questions are “I don’t know” and each add:

R I S K

The four letter word that nobody likes

Pillars of Risk Associated with EV Adoption


Overcoming Barriers to EV Adoption

What will my electricity costs be?

What is my operating cost per mile?

What will be my fuel economy?

What about my maintenance costs?

How long my EV fleet need to charge for? Will we need

BEVs or PHEVs?

What’s my payback using my criteria?

… by taking a data-driven and customized approach


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Daily Distance Travelled

Average distance for ICE fleet vehicles:

40 miles/day (~63 km / day)

% of vehicles travelling < 40 miles per day:

56%

Sample size = 3,686

6 12 19 25 31 37 43 50 56 62 68 75 81 87 93 99 106 112 118 124 miles

km

ICE Vehicle Utilization: Average Daily Distance


Battery Electric Vehicles (BEVs) need to:

• Be range capable for their fleet application, while keeping the vehicle utilization up

Plug-In Hybrid Electric Vehicles (PHEVs) need to:

• Maximize their electric driving as a proportion of total utilization

The EV Utilization Challenge for Fleets


8 EV Models Commonly Used in Fleets

Smart Fortwo ED

- 68 mile (109 km) range

- Small but affordable

- Administrative positions, traveling to various work sites

Tesla Model S


- High end, luxurious

- Taxi and police fleets

Nissan Leaf


- Affordable, class leader

- Administrative positions, deliveries, utility surveyors

BMW i3


- Range extender available (150 miles / 241 km range)

- Green livery fleets, taxi and police fleets

Newton Truck


- Highly configurable

- Delivery fleets, stake bed trucks, repair truck for utilities

Chevy Volt

- 53 mile (85 km) electric range

- Gas motor eliminates any range anxiety

- All-purpose sedan, small parcel deliveries

Ford Fusion Energi

- 19 mile (31 km) electric range

- Elite economy for short trips

- Shuttle, short deliveries,

Kia Soul EV


- Efficient and versatile

- Transport bulkier items, delivery fleets, replacement for work trucks


Step #1

Data log existing vehicles

Step #2

Simulate duty cycle data in EV modelling and simulation software

Step #3

Build multi-year EV adoption plan

How are the vehicles currently being used?

Bringing Data into the Equation

Will EVs be range/charge capable? Will they reduce total costs?

How do I begin incorporating EVs into my fleet?


EV Modelling & Simulation Demonstration Video


Customized Roadmap to Evaluate EV Risk and Reward


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$20,000.00

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Total Cost of Ownership Forecast: Current Vehicles vs. Electric Vehicle

Current Vehicle Potential EV

TCO ($)

Electric vehicle had lower total cost of ownership 11 times out of 25 duty cycles examined

Financial Savings:

GHG Emissions Reductions:

Fuel Reductions:

16%

64%

67%

$233,559

45,282 gallons

524 tons CO2

Avg. savings/vehicle changed:

$21,232 ($252/month / 7-year life-cycle)

Duty cycles suitable for EV:

44%

Fleet EV Assessment Impact



Today’s Agenda


We’re Seeing 2 Major EV Challenges

1. Low Utilization (BEVs)

2. Plugging-In (PHEVs)


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Daily Distance Travelled

Average distance for BEV fleet vehicles:

22 miles/day (~36 km / day)

% of vehicles with < 40 miles per day:

70%

Sample size = 3,488

6 12 19 25 31 37 43 50 56 62 68 75 81 87 93 99 106 112 118 124 miles

km

Challenge 1: Low BEV Utilization


Maximizing Electric Vehicle Miles Traveled

Average Ending SOC: 31% Avg. Daily Distance: 92 miles



LOW UTILIZATION

HIGHER UTILIZATION

HIGH UTILIZATION + OPPORTUNITY CHARGING


Before plug-in compliance tracking

After plug-in compliance tracking

Electric driving = 16%

Electric driving = 73%

Challenge 2: PHEVs Not… Plugging In


Energy Cost:

Electric Driving: Payback Period:

$8.30 per 100 miles 16% of the time 4.1 years

Energy Cost:

Electric Driving: Payback Period:

$4.20 per 100 miles 73% of the time 2.6 years

Without Management of PHEV Metrics With PHEV Metric Management

Fleets that monitor their PHEVs are able to see a return on investment in a number of ways including

ensuring that vehicles are being plugged-in and maximizing the electric vehicle miles travelled as a

proportion of total miles.

Savings from Plug-in Compliance Reporting


Understand Where EVs are Charging and their SOC


EV Motor Pool & Dispatch


EV Fleet Management Features



Today’s Agenda


Utilities Moving Towards TOU Pricing

For consumers/fleets, it offers the opportunity to save money simply by shifting consumption to off-peak hours. For utilities, it means avoiding costly infrastructure upgrades required to support peak demand. For the environment, it means diminishing the use of dirty “peaker” power plants (currently only used a few days a year), and integrating more solar and wind-sourced electricity into the grid.


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Time of Day

Charging Behaviours and Time of Use Rates

Only 27% of fleet charging events occurred ‘off-peak’

Off-Peak Mid-Peak On-Peak

Sample size = 2,653

TOU Charging Behavior


Sample Ford Fusion Energi Charging Behavior


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Available Time to Charge (hours)

Sample size = 3,703

15 hours

Average Charging Time for Fleet EVs


3 Methods of EV Charging

Now! Now! Now!

Dumb Charging Scheduled Charging Smart Charging

Charging begins as soon as you plug in

Charging is delayed until a preset start time

(i.e. low time-of-use rates)

Charging may begin immediately but can be reduced/delayed based

upon external factors.

Partial control may be given to 3rd party (i.e. facility operator or utility)

Charging cost per vehicle per month

$38 $29 $15

Comparable gasoline cost per vehicle per month

$137 $137 $137


API

(2) EV driver sets preferences to participate

EVSP Partner

API

EV

charging

station

(1) Fleet sets EV load curtailment thresholds

Smart Charging System for Fleets


EV Control Through a Back-End


Recap

1. Fleets are turning to data to make smarter procurement decisions.

2. By monitoring, understanding, and optimizing your EVs’ usage patterns, you can drastically improve ROI.

3. Automated smart charging systems make it easy to shift charging off-peak and reduce costs.

Webinar Bonus

• 15 minute call with Mark to chat EVs

• Chat about whatever you want to chat about

• No agenda, no sales pitch

• Just vote “Yes” in the poll


An End-to-End EV Solution


Mark Goody Manager, Electric Vehicle Programs FleetCarma [email protected] www.fleetcarma.com 1-800-975-2434

150+ clients across 23 countries world-wide

Thank you for your time!

maximizing the roi of fleet electrification

Automotive