The Importance of Electrification Journey Planning

Electrification broadly refers to the transition of devices or infrastructure to use electricity as a primary power source rather than fossil fuels. The most prevalent examples are in homes, industry, and transportation where appliances, plant equipment, and vehicles have been transitioned to be powered by electricity rather than natural gas or petroleum-based alternatives. Driven by climate concerns and the need for electric utilities to stabilize demand, successful electrification requires clean, reliable power and adequate distribution infrastructure to ensure effective charging availability.

We asked Leidos energy expert Joe Blackwell for his insight on how electrification programs – and in particular fleet electrification programs – can position utilities as trusted energy partners with their customers. Answers have been edited for clarity and length.

What are some significant trends and innovations driving the future of electrification? 

Electrification funding and support resources are shifting from federal sources to state and industry-based entities. While this shift is currently impacting EV demand and the number of charging infrastructure projects moving forward, states and local communities are stepping up to provide incentives and build charging networks through IRA-funded grants. There's hope for a market rebound driven by the business case for EVs – especially with innovations in electrification technology.

Some of the advancements in fleet electrification technology include ultra-fast, wireless, and bidirectional charging options. In particular, ultra-fast and wireless EV charging enhances convenience and reduces charging times for drivers, which is vital for increased and more widespread EV adoption. Bidirectional EV charging enables vehicles to send power back to the grid, acting as mobile batteries for grid stability and home or facility backups. Technologies are rapidly evolving in the EV space, so it is important that fleet electrification planning take into account the long-term goals of the organization as well as incorporate flexible planning frameworks that can incorporate technological advancements in the future.

What are some challenges and opportunities in fleet electrification? 

Fleet electrification decisions should prioritize sound business considerations and focus on operational suitability of available EVs. Key factors to consider when selecting EVs include vehicle range, topology, dwell times, and market availability for like-for-like replacements of internal combustion engine vehicles. Light-duty EVs offer various configurations, and their operating ranges continue to improve. Likewise, the number of medium and heavy-duty EV options for commercial fleet operators are increasing, which provides more flexibility for larger fleets. However, these larger EVs are often more limited in their operating range and require more substantial investment in charging infrastructure.  Additionally, charging infrastructure placement and power readiness are critical, especially for large fleets that require rapid charging and may strain the current electric distribution capacity.

Despite higher initial costs, EVs can significantly reduce fuel and maintenance expenses, potentially reaching total cost-of-ownership parity in 5-7 years with careful planning. Additionally, the move to an electric fleet stabilizes ongoing operating expenses while helping organizations achieve sustainability and decarbonization objectives.

What are some questions to ask customers when starting an electrification journey? 

Focusing on fleet electrification begins with assessing vehicle suitability as the EV market evolves. Key considerations include usage, charging requirements, and infrastructure needs, often requiring expert fleet management and EV consulting support. It is important to collaborate with various stakeholders to create financially sound electric vehicle plans. A solid electrification planning approach centers on the needs and interests of the fleet operator.  As an electrification advisor, I ask questions that get to the root of why they are considering electrification, help create both short-term and long-term guides, and determine actionable steps and realistic timeframes for implementation in order to achieve their goals.

Questions to consider:

• Is the utility customer interested in a purely business-oriented plan?
• Do they have climate and carbon reduction objectives?
• What are the local and/or state incentives that will support an electrification plan?
• Are there incentives available to offset the costs of EV fleet conversions?
• How carefully have codes and standards been developed to support EV enablement?
• What are the charging requirements and the utility’s ability to serve?

In developing strategic plans, it’s important to understand EV demand and align it with capital projects. In addition, interests such as business goals or climate objectives shape the approach. Ultimately, charging availability and vehicle economics influence electrification decisions, necessitating experienced partners to achieve objectives effectively.

Successful fleet electrification programs include a mix of strategic planning, incentive design, and deep customer engagement. Programs that succeed move beyond simple rebates by understanding customer motivations, simplifying complex processes, incorporating innovation, providing accessible technical assistance and building trust through partnerships. 

What makes Leidos’ approach to electrification planning unique?

Leidos is a leader in transportation electrification, assisting clients with EV conversion challenges. We collaborate with federal agencies and large fleets for planning and have supported charging equipment vendors with technical and financial strategies. Having run EV programs for utilities, we understand the factors influencing EV adoption. Leidos develops plans for utilities and municipalities, delivers incentive programs, and designs fleet charging sites. Our electrification advisors create methodologies for assessing electrification decision criteria and have partnered with national laboratories for EV infrastructure standards. 
 

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