Fleet electrification can have 'outsized influence' on EV adoption: RMI

Source: Smart Cities Dive Published: January 25th, 2021

Dive Brief:

The electrification of vehicle fleets presents a significant opportunity for organizations to reduce their operating costs and drive the adoption of emissions-free transportation, but electrification must be tackled systematically or risks driving up costs, according to a new report from Rocky Mountain Institute (RMI).

RMI surveyed fleet managers for local and state governments, utilities, universities, private technology companies, and delivery services, and concluded 81% have already begun electrifying their fleets.

Clean energy advocates are calling for the federal government and U.S. Postal Service to electrify their fleets, and expect a push toward electrification under President Joe Biden. EV advocacy group Plug In America on Wednesday launched a campaign calling for the administration to commit to all new light- and medium-duty car and trucks to be plug-in hybrid or battery electric vehicles by 2030.

Dive Insight:

Fleets make up about 3% of all vehicles registered in the United States but can "have outsized influence on the successful electrification of the entire transportation sector," according to RMI's report.   

Converting large fleets of vehicles to electric can "drive scale," the report concluded, which can result in lower vehicle and infrastructure costs for the organization doing the conversion, help streamline permitting and utility interconnection processes, and influence broader trends towards electrification.

"Done right, it's a fundamental business restructuring challenge for entire organizations," the report said. "Done badly, it can be a series of very costly errors."

Chris Nelder, a manager with RMI's mobility practice and co-author of the report, said organizations need to take the long view on electrification.

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