Comment: EV demand rising but is the power traceable?
Kevin Welstead, EV sector director, SSE Energy Solutions, on the need to prioritise renewable sources of power for EVs as fleets get ever-more savvy on sustainability.
The rise of the electric vehicle shows no sign of slowing. The transition away from fossil-fuelled internal combustion engines and toward clean technology is imperative for net zero ambitions. Transport accounts for around a quarter of global energy-related CO2 emissions, and businesses own more than half of all registered vehicles.
However, there are a few bumps in the road that need smoothing. As Mike Hawes, SMMT chief executive, said earlier this year: “The biggest obstacle to our shared net zero ambitions is not product availability, but cost and charging infrastructure.”
As businesses with vehicle fleets face increasing pressure to transition from fossil fuel to zero emission vehicles, the electrification process can seem a daunting process at first.
I would argue that fleets looking to decarbonise should not fear the cost factor. EVs have lower servicing and maintenance costs, a zero rate of Vehicle Excise Duty and are also cheaper to refuel than petrol or diesel vehicles – all of which will drive down operating costs over time.
But perhaps the most forgotten aspect of the EV journey is the origin of the power used for charging. How green are those “zero emissions” vehicles in your car park?
What I hear from colleagues who help fleet operators transition to EVs is that being able to demonstrate low-carbon credentials is rising up the agenda. It’s not enough these days to say you have EVs; you have to prove that they are powered by renewable sources, with customers ever-more savvy when it comes to sustainability.
Most consumers are wise to the fact that “zero emissions” is just a slogan if the electric vehicles in question are running off electricity that has been made by gas or coal. And then there’s the wider supply chain – if you are subcontracted to do deliveries, for example, your client will likely expect you to meet certain criteria. That can include demonstrating your commitment to sustainability, or calculating your carbon footprint. At which point it’s not enough to say you deliver using EVs – you’ll have to show that they are powered in a traceable green way.
By switching your business to a fully-traceable electricity tariff, you can be sure that your vehicles are charged in a sustainable way from renewable energy generation. For example, SSE’s Green EV tariff is 100% renewable electricity generated from SSE’s own UK wind farms and hydro plants. It comes with independent verification by EcoAct, an Atos company, so it’s easy to report zero carbon emissions for electricity.
Having this certification can give you a competitive advantage when seeking commercial opportunities and enhance your reputation with customers and stakeholders who increasingly expect green to really mean green.
It’s worth bearing in mind that EV tariffs are most suitable for sites where the majority of power demand is for EVs. Tariffs that are founded on time-of-use benefits enable vehicle and fleet owners to pay less for their electricity when charging during low-demand and off-peak periods. For fleet owners, these periods will typically coincide with evenings and night-time when vehicles are charged.
For sites where power demand for EVs is lower, businesses can still charge their electric vehicles with renewable energy by opting for a standard green electricity tariff. For example, at SSE all our fixed contracts include 100% renewable electricity as standard.
The road to net zero will have a lot of twists and turns along the way, but it’s essential that we make every effort to reach our destination. Fleet owners need to be forward-thinking and consider the bigger picture when looking to meet their decarbonisation goals, but it will be worth it to preserve our planet for generations to come.