Business Operations and the Environment benefit from the increasing profitability of electric commercial fleets
As they cover ever longer distances and costs continue to fall, electric vehicles are an attractive option not just for individuals, but increasingly for companies. At the same time, they are becoming formidable competition for fossil-fueled commercial fleets. As many as 700,000 electric company vehicles could be on the roads in Germany by 2020, with new concepts such as car sharing continuing to drive this development. Power2Drive Europe, the new international exhibition for charging infrastructure and e-mobility, makes its debut from June 20–22, 2018 at Messe München, where it will serve as an interface between the electrification of transport and a sustainable energy supply. The exhibition shines a spotlight on the up-and-coming industry from the perspective of manufacturers and users, and joins three other energy exhibitions as in integral part of The smarter E Europe, the innovation hub for empowering new energy solutions.
Commercial and municipal vehicle fleets represent a significant expense and are thus subject to constant scrutiny and analysis. As commercial fleet vehicles are replaced regularly, many businesses are asking themselves: internal combustion engine or electric motor? A glance at the developments in e-mobility shows that electric commercial fleets are becoming increasingly attractive. According to a study conducted by DEKRA and the German Institute for the Automotive Industry (IFA), the total costs of ownership for an electric car, including acquisition, electric power, maintenance and repair, are expected to continue to fall. By 2020, these costs could be as much as 3.2 percent cheaper over the life of the vehicle than the costs of a conventional car with an internal combustion engine, not counting any state subsidies. With commercial fleet maintenance and repairs in particular representing an ever increasing expense for businesses, e-vehicles require fewer maintenance services.
Profitability begins with acquisition: Today the purchase price is hardly an argument in favor of combustion engines over electric motors. Electric versions of commercial vehicles in particular, which can be leased and depreciated, are becoming more and more advantageous for businesses. Next to buyer’s premiums, higher sales volumes, a broader selection and more affordable technologies are driving down prices. Take battery costs, for example: In 2010, a kilowatt hour cost roughly 600 euros. According to calculations by the consulting firm Horváth & Partners, costs were down to roughly 225 euros per kilowatt hour by 2016, and by 2020, prices could even fall below 100 euros per kilowatt hour.
From rescue services to taxis: Electric cars offer an alternative
In Germany there are roughly a million cottage industries, some 100,000 architects and tens of thousands of engineering firms. Most of them operate within a radius of 50 to 100 kilometers, or even shorter distances in cities. Electric vehicle fleets are an appealing alternative here, especially as improved battery technologies now allow them to cover even greater distances of between 300 and 600 kilometers. Even with a shorter range, e-mobility is suitable for elder care visits, municipal and private rescue services, waste management operations and vehicle fleets for municipal utility companies. Innovative mobility solutions for administrators and citizens are the forward-looking choice for municipal utilities. Rescue services and medical transport account for approximately ten million trips per year in Germany. The switch to electric vehicles will not only help control costs; the generation and use of clean and renewable energy are also an important contribution to the future of energy.
All the enthusiasm in the world is not enough if employees don’t do their part – and that is only possible with adequate infrastructure. “Acceptance by the employees is a success factor for the electrification of commercial fleets,” said Ove Petersen, CEO of GP JOULE, whose company has already completed the switch to e-mobility. “Charging has to be available at company locations and at home in the form of individual charging solutions. Companies that combine charging infrastructure with green power generation via a PV system on site make the switch even more sustainable and profitable.”
E-vehicle fleets and car sharing: The dream team for the transport transition
Electric vehicle fleets and car sharing together create a profitable alternative to fossil-fueled company and service vehicles. Fleet vehicles are driven thousands of kilometers each year and the costs are calculated on a per-kilometer basis. As an example, a cost comparison by the ADAC of the Volkswagen e-Golf and its internal combustion engine counterpart reveals that a typical annual driving distance of roughly 10,000 kilometers in the e-Golf averages out to costs of 63.2 euro cents per kilometer. In comparison, the gas-fueled version is 0.3 euro cents more expensive per kilometer, and the diesel consumer spends an additional 5.7 euro cents per kilometer. When making the same comparison between Tesla models from the X and S series and the equivalent BMW, Audi and Mercedes combustion engine models, the electric version is again a better value. For the Tesla S 75D, a typical annual driving distance of roughly 10,000 kilometers averages out to 144.2 euro cents per kilometer, 28.5 cents cheaper than the BMW 640i (172.7). The BMW 640d averages 177.5 euro cents per kilometer.
Per kilometer costs for commercial vehicles also come out a bit in favor of the electric models. The Nissan e-NV200 Combi Premium costs 61.6 euro cents per kilometer at annual driving distances of 10,000 kilometers. At 62.5 and 64.4 euro cents respectively, the gas and diesel counterparts are at least 0.9 euro cents more expensive per kilometer. The costs are further reduced when the vehicles are charged with self-generated power. For PV systems – which have been paid off and are no longer eligible for remuneration under the German Renewable Energy Sources Act after 20 years – there is practically zero cost for clean energy.
Due to increased use, car sharing concepts lead to much higher annual driving distances per vehicle, and overall to fewer automobiles being purchased. In light of the planned driving restrictions in big cities like Stuttgart, Munich and Berlin, the sharing principle is an additional step towards a sustainable, future-oriented transportation concept. Car sharing is also taking hold for taxis. If the roughly 55,000 taxis in Germany were run with electric motors, this would represent an important building block for the transport transition and would offer an advantage: the downtown areas would remain accessible to them – a definite must in the taxi business.
Power2Drive Europe: Industry platform for sustainable mobility
How mobility and transport will look in the future depends entirely on innovative charging solutions, battery solutions and business models for sustainable mobility. With its comprehensive spectrum of topics, Power2Drive Europe covers the transportation sector and connects the renewable energy, energy storage and e-mobility sectors in unprecedented ways. Over 200 suppliers of traction batteries, charging infrastructure, electric vehicles, grid infrastructure and integration solutions are bringing a bold dynamism to the emerging industry. Power2Drive has an important role to play as part of the new innovative platform The smarter E. In context of the new energy world, the coupling of the transportation, heating and electricity sectors are increasingly taking center stage. The smarter E Europe combines the four energy exhibitions Intersolar Europe, ees Europe, EM-Power and Power2Drive Europe and covers all the core areas along the energy supply chain.
Image source: © Solar Promotion GmbH
Power2Drive Europe and the parallel events will take place from June 20–22, 2018 under the umbrella of The smarter E at Messe München.
Power2Drive Europe is the new exhibition for charging infrastructure and e-mobility. It reflects the opportunities and the necessity of the energy transition in the transportation sector. The focus is on traction batteries for electric vehicles as well as infrastructure solutions and technologies for clean mobility.
Power2Drive Europe offers manufacturers, suppliers, distributors and start-ups in this growing industry a professional platform to present new developments and business models.
With Power2Drive Europe and Power2Drive India, the event is kicking off in two exciting markets, emphasizing its international character.
In 2018, Power2Drive Europe will be held in parallel to ees Europe, the continent’s largest exhibition for batteries and energy storage systems, which is taking place for the fifth time. The exhibition’s focus on stationary energy storage solutions and technologies offers the perfect complement to the topics covered at Power2Drive Europe. Intersolar Europe, the world’s leading exhibition for the solar industry and its partners, and EM-Power, the new exhibition for the intelligent use of energy in industry and buildings, will also take place at the same time. All four exhibitions are being held under the umbrella of The smarter E Europe – the innovation hub for empowering new energy solutions.
For more information on Power2Drive Europe, please visit: www.PowerToDrive.de
Organizer: Power2Drive Europe is organized by Solar Promotion GmbH, Pforzheim and Freiburg Wirtschaft Touristik und Messe GmbH & Co. KG (FWTM).
Solar Promotion GmbH | Postfach 100 170 | 75101 Pforzheim
Sabine Kloos | Tel.: +49 7231 58598-0 | Fax: +49 7231 58598-28 | info@PowerToDrive.de
fischerAppelt, relations | Otl-Aicher-Str. 64 | 80807 München
Robert Schwarzenböck | Tel. +49 89 747466-23 | Fax +49 89 747466-66 | rs@fischerAppelt.de