Vehicle fleets to use as much electricity as 40 million U.S. homes. Should you care?

December 28, 2017

Within 10 years, vehicles in commercial and municipal fleets will consume in excess of $45B per year worth of electricity.  Today, they consume closer to ZERO.

 

No, the B is not a typo. For reference, 45 billion dollars of electricity is close to 15% of U.S. electricity, or the equivalent of 40 million homes. 

 

 

Three things worth understanding about this:

 

1. Vehicle operating costs impact transportation pricing, which impacts you directly every day.

 

Your local bus (or Uber) fare, bottle of Snapple, or Amazon Prime subscription fee all rely on the fleet costs that support physical delivery of those products and services. Many fleets adopt electric vehicles to lower those delivery costs. When they do, they also adopt electricity as a new expense category (replacing fuel). Management of this new expense impacts their ability to pass on savings to you.

 

Projected U.S. Fleet Annual Electricity Expense ($B)

 Each house represents the annual electricity use of 5 million U.S. homes

 

2. Electric vehicle fleets around you impact your electricity’s stability AND your electricity’s stability impacts the fleets around you.

 

It's probably not shocking that the 75 electric school buses or 250 electric police cars charging in your neighborhood use a disproportionate amount of power. While you want vehicles to be charged so that students arrive to school on time and police officers have the juice to respond to emergency calls, you don’t want that to cause your air conditioning to shut off or your lights to go out. Good news... everyone’s needs can be accounted for with appropriate planning and infrastructure investment.

 

3. Vehicle fleets can lead the way to U.S. energy independence.

 

According to an October 2017 report from Barclays, electric vehicles will “knock out 9 million barrels a day of demand, or about 90 percent of Saudi Arabia's daily output” when they reach 1/3 of vehicle penetration. As fleets will adopt electric vehicles much sooner than personal vehicles (see chart below), these fleets will accelerate our path toward that future.

 

Figure 1: Projected US fleet vs. overall market EV sales projection (% of annual sales)

To reference our electric vehicle fleet penetration projection that stands behind these statistics, see: Link

 

Small infrastructure design improvements can make a material impact on fleet vehicle electricity consumption. Those improvements can net billions of dollars to invest elsewhere in municipal services, flexibility for US businesses to offer better prices, or simply, accelerate our energy independence. Regardless of where you live or what you do everyday - transportation directly impacts your life and achieving these cost reduction goals through fleet electrification will have a positive impact on you and your community.

 

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Repower Group helps fleet operators maximize the innate economic benefits of electric vehicles and capture incremental savings through smart infrastructure design, creative financing, and strategic energy management. 

 

If you’re an interested fleet operator, vendor, partner, or general stakeholder, we’d love to meet you! Shoot me a note at bbirnbaum@repowergroup.com.

 

 

 

 

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