How Transforming Your Commercial Fleet To EV Can Save Energy & Deliver Revenue

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As commercial electric vehicles (EVs) continue to gain acceptance for their ability to transport goods with high efficiency and zero emissions, another big benefit has yet to be fully embraced: their ability to serve as a fleet of rolling energy storage devices. As more electric vehicles and charging systems with bi-directional energy capabilities are built, the advantages of using vehicle-to-everything (V2X) connections are becoming more obvious. Commercial fleet owners could use these EVs in several different ways, ranging from a backup power source to charging another EV, to participating in the energy trading market and generating revenue by selling electricity back to the grid (arbitrage).

For commercial fleets, especially vehicles like delivery or shuttle vans that may be idle most of the time, this feature can save additional money or even generate revenue. By charging during off-peak hours and feeding electricity back into the grid (or building) during costly time-of-day peak electricity rates, commercial fleets can not only mitigate their own electricity bills but also potentially even make money.

With the right charging system, electric vehicle fleet owners can draw power from one vehicle to charge another (vehicle-to-vehicle) without having to pull electrons from the grid, potentially saving money and possibly time (assuming the vehicles are already hooked up via a common DC-Bus such as Hitachi’s Grid eMotion charging system and don’t need to be moved or plugged-in to a separate location. By transferring lower-cost, off-peak electricity from one vehicle to another during peak rate times, fleets could see lower charging costs for their vehicles and more efficient processes for keeping them topped off. However, because EVs can’t be directly connected from battery to battery (unlike jumpstarting a gas-powered vehicle), there are inefficiencies due to the necessary conversion of DC (in the source vehicle’s battery) to AC and then back to DC (in the vehicle being charged), which is something that the design of future charging systems will hopefully address.

Taking this feature one step further, with the use of bi-directional EV chargers and an advanced charging management system, fleets would have the opportunity to utilize the excess battery storage in their EVs to sell electricity back to the electric utility (V2G: Vehicle-to-Grid) during periods when the pricing is right, essentially turning their batteries-on-wheels into a revenue source. However, as with previous examples in this article, there are some limiting factors currently in place, namely the need for bi-directional charging equipment, the inherent power losses in stepping voltages up for the grid, and the need for the local utility to allow net metering. But as EVs and EV charging technology continue to improve, some of these limiting factors may soon be overcome.

Hitachi has experience with V2G projects since 2011. The weblinks below provide additional details: 

Hitachi Smart Grid (V2G) Project in Maui (Hawaii)

Case Study: Smart Grid Demonstration (JUMPSmartMaui)

Hitachi supported one of the first V2G systems in North America integrated with a Microgrid in early 2022:

V2G Example: Hitachi Energy SnoPUD Microgrid (Washington)

Electric School Bus Fleet V2X

One prime candidate for electrification is municipal school bus fleets, which typically run set routes several times per day, with the rest of their time spent sitting idle in the bus depot or school parking lot, often during peak electricity time of use rates. Traditional ICE (internal combustion engine) school buses (diesel or gas) have exhaust emissions that emit a larger carbon footprint compared to electric buses. They also tend to be noisy and have much higher maintenance and repair costs, so converting a school bus fleet to electric could have a wide range of benefits for both those who ride them and the school districts that operate them. Municipal transit bus fleets, which typically have higher daily and weekly usage rates than school buses and longer operating hours, can also benefit greatly from electrification by offering cities an opportunity to clean up local emissions while strengthening the grid and potentially offsetting operation costs with vehicle-to-grid technology.

For example, electric school buses that are parked and charged overnight at the bus depot will be available with a full charge each morning for the driver to run their routes, which are typically very predictable (same routes every day, same number of pickups and drop-offs). Once back at the depot after the morning routes, the buses can be plugged-in and fully charged for its afternoon route (also typically a set route). This predictability allows for the fleet management and charging software to keep each individual bus charged to the level needed in order to complete its afternoon routes (plus a bit of a safety margin) and can also allow for any excess charge in those bus batteries to be sold back to the grid (vehicle-to-grid) during peak demand times, or possibly used within the depot or school buildings themselves (vehicle-to-building).

The charging software can keep each bus battery at a state of charge that will enable it to complete its afternoon route. When the buses return to the depot at the end of the day, they can be hooked back into the charging system, where they can be recharged, and/or potentially sell excess electricity back to the grid during the evening’s peak demand time. Once off-peak hours go into effect, the buses can then be fully charged again at off-peak rates to be ready for the next day’s routes.

By converting their fleets to electric vehicles, municipalities, and businesses can reduce greenhouse gas emissions, improve air quality, and save money in total cost of ownership, while also potentially reducing energy costs and potentially earning revenue with vehicle-to-grid capabilities. In addition, adding a solar array and/or battery storage system to facilities could increasingly ‘green’ up the school or business operations and add resiliency to the local grid, while also offering educational opportunities about renewable energy and electrification to both students and local residents alike.

Due to the need for advanced charging hardware and fleet management software, converting a fleet to electric vehicles and optimizing their operation with bi-directional charging isn’t as simple as buying an electric version of the current vehicles in the fleet. However, as an energy-efficient wave of the future, the evolution of EV has much to offer businesses and municipalities.

Enabling businesses and organizations to meet their carbon footprint goals by transitioning their fleets to electric vehicles, Hitachi has multiple fleet solutions including:

• Fleet management software to optimize assets (Vehicles and Chargers)
• EV Charging System utilizing common DC-Bus (Grid-eMotion)
• Battery Energy Storage System (BESS: PowerStore).
• Energy Management System (EMS) for Distributed Energy Resources: Solar/Wind/BESS/MicroGrid (e-Mesh)
• Lumada Predictive Maintenance improves fleet uptime
• Lumada Repair Recommendations to improve repair times
• Financing for EV fleet vehicles and charging infrastructure
  • Depot Solutions (Hitachi owns the vehicles and EVSE infrastructure)
  • Charging-as-a-Service (Hitachi owns EVSE infrastructure): Pay per use

For more information, or to learn more about how Hitachi can help you transition from an ICE fleet to EVs while maximizing the benefits of V2X technologies, please contact us.

 

This article is supported by Hitachi.