ACT Expo: The 4 Key Insights
May 31, 2022 | by Cameron Wolf
This year's ACT Expo affirmed the arrival of mainstream commercial transportation electrification. Attendance consisted of both new and established players in the clean transportation industry. The expo served as a stage to show both visible achievements and discuss how fleets will go electric.
Sentiment from the show was that transitioning from gasoline to EVs may be challenging for a while. This is in large part due to present supply chain difficulties and a lack of infrastructure availability, which are slowly getting resolved. As a result, education remains an important topic at ACT Expo. Educational topics such as infrastructure planning, Time of Use (TOU) rates, Total Cost of Ownership (TCO), and operational planning were widely discussed.
As we walked the floor, we gathered many insights and saw the excitement among companies looking at electrification. We captured the key elements in the electrification process that participants were discussing:
Fleets Want to Quickly Generate TCO
Fleet Managers need tools that can measure the costs of going electric quickly and easily. An easy-to-use TCO calculator will help.
TCO takes into account all the factors of vehicle ownership. This includes vehicle purchase price, fuel, maintenance costs, and charging infrastructure. The TCO model is important for a business to understand the implications of owning an EV and it needs to be simple.
The need for simplicity is imperative. Many of the attendees talked to us about their need for complex calculations to be simple. This includes comparisons between the benefits of electrification versus fossil fuel vehicles.
Some feel it is critical to go into greater detail on cost calculations, but this is typically a later thought. Fleet buyers want to see the bottom line quickly and then have access to thorough numbers.
Hydrogen Less Important This Year
Car manufacturers have been transitioning to more eco-friendly products to curb climate change. Some companies have introduced EVs and other hydrogen-powered vehicles into their catalog. To hedge their bets, a few have introduced both.
Last year, hydrogen-powered vehicles appeared to have an equal presence to EVs. This year, EVs had a larger showing at the expo and gave the impression that EVs dominated the expo.
We asked around to see what could have shifted the balance:
Driving Range: Hydrogen vehicles typically achieve longer ranges. Despite this, EVs are getting closer in driving range.
Refueling: Hydrogen refueling is quicker (5 mins) vs electric fueling (can take hours). Despite this, hydrogen stations are lacking in abundance. In California alone, there are over 5,000 EV charging stations. In contrast, there are only 45 hydrogen charging stations in California.
Market Share: In 2021, 8,500 hydrogen vehicles sold versus 6.6 million EVs sold.
The cost to set up an on-site hydrogen fueling station is still high. It would only be worthwhile when serving larger vehicles driving longer distances.
Infrastructure Planning and Profitability
At the expo, one of the most frequently discussed issues was infrastructure profitability. Utilities and automakers shared the sentiment that infrastructure needs to be profitable.
Utility companies are having difficulty determining the best strategy for deploying charging stations. The goal is to benefit their community but also make enough money to be sustainable.
Many want to help their customers make the right decision. Yet, there is no one-size-fits-all solution. On the other hand, there are opportunities to help customers plan their infrastructure. When it comes to alternative-powered vehicles, businesses usually have several questions:
How do I set up chargers? When charging costs factor in, will EVs still be cheaper than ICE vehicles?
What are the available incentives and how much will my utility help with the process?
What will the cost of the electricity be?
Utilities enjoy offering interactive planning tools. They help customers understand how to install EV fueling infrastructure. Utility companies can also provide to-the-meter (TTM) and behind-the-meter (BTM) information. This allows stakeholders to understand the total cost of ownership in fleet setup.
Utilities have one of the biggest roles to play when it comes to electrifying the country. Their role will only expand as electrification transportation continues to grow.
Interest in Charger and Depot Management Systems
The charging industry links utilities, automobile manufacturers, and fleet management companies. The challenge in all these sectors is attempting to manage them efficiently.
The charger and depot management systems, as well as other solutions that assist with the provision and management of EV charging stations, received a lot of interest at the expo.
Perhaps one of the biggest drivers of interest are auto OEMs.
Automakers are discovering that charging infrastructure isn't just a stumbling block to overcome, but also a business opportunity with higher profit margins than the vehicles they're selling.
Outside of OEM interest, charging management systems have sparked fleet intrigue. For charging efficiency and cost optimization, fleets are particularly interested in this technology. Conversely, depot management systems provide information on the status of fleets. This includes location and driving patterns.
Charger and depot management system software will be a key driver for fleet electrification.
Some other benefits of these systems include:
Load Management
Charging cost information
Reduced downtime
Ability to schedule charging times
Monitors the status of vehicles
Provides information on driving patterns
With so many benefits, it's no wonder these technologies are gaining popularity. We expect to see more and more fleets implementing these systems in the coming years. They will play an instrumental role in keeping electric fleets efficient.
____________
ACT Expo provided great insights into what the future transition of fleets to electrify looks like. We’d love to share more insights and demo tools to help your customers find the best practices for electrification. In the meantime, feel free to contact us with any questions.