EXPERT COMMENT: How commercial vehicle operators can charge ahead with decarbonisation in 2025 and beyond

In October 2024, Simon Reilly, the CEO of Aurora, contributed an article to industry publication, Fleet News. Some of his thoughts included

“LCV fleets are behind in decarbonising, despite growth in EV registrations. Charging challenges threaten the net zero ambitions of fleet operators, but Independent Distribution Network Operators (IDNOs) could hold the key. 

“The good news is that electric van registrations are growing. The year 2023 saw a spike in electric van sales with over 20,000 registered, a 21% rise year-on-year. However, fleet operators are under pressure to go green even quicker.

“The industry is at a crossroads; fleet operators must balance their regulatory obligations with cost efficiency, and customer service.”

In the article, Simon shared examples of UK companies who have already begun to electrify their fleets including; Tesco and the Royal Mail.

He added, “Many operators have voiced concerns over the cost of installing EV charging infrastructure. There’s an investment required upfront, which includes the hardware, the management software, cables, supplier contracts, cost of permits, and so on. 

“Overall, the complex nature of the installation can sound daunting. Afterall, there may be grid capacity issues that vary depending on where in the UK the charging is needed, leading to a complicated spiderweb of approvals to navigate.”

Offering his thoughts on a solution for decarbonising large vehicle fleets, Simon said, “In order to turn a major fleet carbon-neutral, it is critical that robust infrastructure is put in place across the whole of the UK. This will ensure commercial vehicles can charge at strategic positions, limiting any unplanned downtime and disruption to delivery schedules. 

“It will take a collaborative effort between government and industry to develop a regulatory framework that will support the zero emission LCV market in the UK. In the meantime, operators can choose to work with IDNOs to speed up their connections.

“Unlike network operators who are obliged to operate in one region, IDNOs take a holistic view of route planning across the whole country, not just in one town or city. For example, data can be used to identify priority delivery locations, volume of goods required where and when, road conditions which might make routes longer, and existing vehicle capabilities in certain areas. 

“This data is then used to determine where the fleet will need to charge across the country, determining where and when demand for energy will be higher and lower. This information is then used to develop a plan for engaging the local Distribution Network Operator (DNO). This data-rich plan and critical engagement ensures the installation will have adequate energy supply when it’s needed, speeding up the process and limiting disruption to deliveries. IDNOs can also advise on planning constraints, including local legislation.

“To overcome the obstacle of an upfront investment into the infrastructure and hardware, IDNOs can offer asset value payments. This is where the IDNO generates revenue from charges paid by the consumer through the energy supplier, and some of this projected future revenue is used to offer a payment to developers to help subsidise the cost of building the new network and unit. In many instances, this payment can transform the project, helping the operator to get their carbon-neutral vehicles on the road quicker.”