Utility Week

24 | 6TH - 12TH DECEMBER 2019 | UTILITY WEEK Operations & Assets Event Accelerate19, BMW Group car plant, Oxford, November wider industry is willing but there are still big bridges that need to be built between key players such as auto manufacturers, infra- structure providers and energy suppliers in order to secure positive outcomes for all. Currently, there is little shared under- standing between these actors about the impact that isolated technology choices today will have on the development of EV value for tomorrow's drivers, whether consumer or commercial. A key example raised by energy retailers at Accelerate19 was the absence of inverters in most EV models being manu- factured today. This omission on the part of many OEMs could preclude their cars from bi-directional charging and so put a limit on their ability to be leveraged in tomorrow's energy flexibility markets. It's a restriction that has many suboptimal impacts, reduc- ing the ability of suppliers to innovate in their business models, reducing the ability of energy networks to use EVs for demand-side capacity management, and blocking con- sumers and commercial fleet managers from accessing fuller flexibility market benefits. It's just one small example of the rea- son why it is so important to agree common standards and policies for EV technologies and markets as soon as possible. It will require co-operation and collaboration on a multi-sectoral level never seen before. Challenges for fleet managers One of the four roundtable debates at Accelerate19 was populated by com- mercial fleet managers from across sectors, including the water sector where an ambitious target to slash industry carbon emissions to net zero by 2030 has recently pushed the decarbonisation of commercial fleets up the agenda. Despite this driver in the water sector, and a common will across the whole group to adopt low-carbon transport options, the conversation highlighted the persistence of key concerns around switching to EVs, including range anxiety, the lack of widespread charging infrastructure and, for some, vehicle cost. Overlaid on these issues, which have much in common with consumer EV worries, were other logistical and HR niggles that companies were struggling to navigate. In addition, for those with large numbers of heavy commercial vehicles in their fleet, decarbonisation remains problematic. EVs were agreed to be simply unviable as a solution in this space, while biofuel and hydrogen options were seen to have significant limitations. Key discussion points from the table included: Driver experience: Most participants who had taken steps to switch fleet vehi- cles to electric options reported a superior driver experience compared with traditional models. Many also said that their fears over range and charging had turned out to be worse in theory than in reality. That said, difficulty getting home at night was a concern for those with company cars clocking up more than 100 miles a day, and until battery life was extended, EVs would remain off the menu for high mileage users. This was not only because of concern over the lack of charging infrastructure, but the prospect of time spent unproductively charging vehicles. Representatives from the table sponsor MINI pointed out that the 350-mile battery was on its way, with parent company BMW among those bringing the technology to market. Tempting tax breaks: Reducing company carbon footprint was a key driver for EV interest across the group. However, the financial benefits of switching to low-emission cars were also front of mind. From April 2020, benefits in kind (BIK), which determines the tax employees pay on company cars, will be zero for EVs, meaning major tax savings are up for grabs. Affordability: Our fleet managers came from companies where employees got to choose their company cars based on cost bands. For those in the financial sector, leasing costs were not a barrier, but this was not universally the case. Our guest from a utility company pointed out that tough determinations mean they cannot be seen to be wasting public money and EV options in suitable price bands are limited. It was acknowledged, however, that costs were falling in low-emission cars – the new MINI Electric will cost less than the petrol version. It was also pointed out that vehicle costs will be offset by fuel expenditure potentially by further savings for those travelling into low-emission zones where EVs could save as much as £25 per day. Charging issues: The availability and convenience of public charging points inevitably came into the discussion, but in addition there were more logistical issues at stake around costs, reimbursement and home charging. Companies generally wanted the bulk of charging to happen either at home or through their own charging installations, to keep down costs down, although install- ing charging points itself could be costly, with one fleet manager quoting a figure of £30,000 for four charging points. One guest from the financial sector said that employees were only allowed to opt for electric if they could charge at home. But this in turn created some knock-on issues. A utility representative, for example, said that field workers were allowed to take vans home overnight and were allowed to go straight to appointments in the morning. However, many of their domestic arrangements were unsuitable for home charging and there was the added the worry for call-out workers about the readiness of vehicles to get to customers if vehicles were mid-charge. Accelerate19 was hosted at the BMW Group car plant in Cowley, near Oxford, where the all-electric MINI has just begun production. New cars manufactured at the plant are due to hit the UK market from March next year. Attendees had the opportunity to tour the state-of-the-art manufacturing facility and learn more about the latest look for the iconic British car. MINI Electric facts and figures: Range: 145 miles Rapid charge time (50kW): 36mins for 0-80% charge Home charging: 12hours for a 0-80% charge or 4 hours with a home wallbox Cost: £24,400-£30,400 (consumer retail price range) continued from previous page

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