By Carlos Carriedo
In this article, Carlos Carriedo, Chief Operating Officer at WEX, discusses how fleet operators can harness the power of innovations, like real-time analytics and advanced payment systems, to help accelerate their transition to mixed-energy fleets and achieve EU emission reduction targets.
As the EU pursues ambitious emission reduction targets, fleet managers must balance decarbonisation goals with operational efficiency and the change management required to embed a new operating rhythm for electric vehicles (EVs).
Across Europe, a growing number of companies are uncovering the value of mixed-energy fleets in ensuring a seamless and effective move to electrification, especially for heavy-duty and high-traffic fleet charging. These mixed-energy fleets provide the flexibility required to adapt to evolving technological advancements and market conditions, all while meeting customer needs and financial and operational goals.
To maximise the efficiency of mixed-energy fleets, fleet operators should embrace innovative solutions, like advanced payment solutions and data-driven analytics, to help accelerate progress and overcome barriers. This will help set them up for long-term success on the road to electrification.
The EU regulatory landscape
The EU’s climate goals have significant implications for fleet operators, requiring them to transition to more sustainable operations in line with the bloc’s decarbonisation timeline. In 2023, the EU committed to slashing net greenhouse gas emissions by at least 55% by 2030, relative to 1990 levels, as a critical first step towards achieving climate neutrality. This commitment is underpinned by the “Fit for 55” legislative package, a comprehensive set of climate, energy, transport and taxation policies designed to lead the EU to become the first climate-neutral continent by 2050.
As part of these initiatives, in January, new carbon dioxide performance standards for new cars and vans came into effect across the EU. These standards required new passenger cars, light commercial vehicles, and heavy-duty vehicles to cut their fleet-wide emissions by 15% by 2025 and 50-55% by 2030 (relative to 2021 levels). This represents a particularly significant reduction for heavy duty vehicles, responsible for more than a quarter of EU greenhouse gas (GHG) emissions from road transport and over 6% of total EU GHG emissions.
To support this EV transition and accelerate the installation of sufficient charging points, “Fit for 55” also included a charging infrastructure mandate, the Alternative Fuels Infrastructure Regulation (AFIR). This mandate requires fast-charging stations (minimum 150 kW) to be present at every 60 km along the Trans-European Transport Network (TEN-T) by the end of 2025.
However, recent political shifts and push back from the auto industry are now adding to uncertainty around EV initiatives throughout the EU, with concessions to these targets potentially on the horizon. The European Automobile Manufacturers’ Association (ACEA), a lobbying group made up of 15 of Europe’s major car, truck, van and bus makers, has called on the EU to reconsider the 2025 emissions targets.
Tackling the barriers to sustained progress
Regardless of the shifting political climate, many European operators have been preparing their fleets for the 2025 climate targets and beyond. Rather than being dictated by policy, better technology and lower total cost of ownership are factors convincing businesses to make the switch to EVs, as reported by sustainable mobility leader, Ayvens. According to research from Frost & Sullivan (commissioned by WEX), 80% of fleet operators surveyed intend for at least 25% of their fleets to be comprised of EVs by 2030.
However, despite this preparedness, there are still persistent challenges impeding this transition, including a lack of adequate charging infrastructure and logistical complexities associated with mixed-fleet payments.
The charging infrastructure gap is a significant challenge. While Europe’s public and semi-public charging infrastructure has surpassed 900,000 charging points, there is still a long way to go; the European Automobile Manufacturers’ Association projects that up to 8.8 million will be needed by 2030 to meet accelerating demand, particularly for commercial and public fleets and in rural areas.
For heavy-duty and long-range fleets, there is an additional need for increased investment into Level 2 chargers, such as specialised home or public chargers, which can offer faster recharge times, and DC fast chargers: high-powered stations capable of replenishing up to 80% of the battery in under 30 minutes. The lack of standardised connectors across all EV models adds another layer of complexity, with ‘range anxiety’ identified as a concern for fleet drivers.
Solving these issues will require a collaborative effort from investors, charge point operators (CPOs), governments, and automotive OEMs. But in the meantime, fleet managers can embrace new innovations to overcome the gaps, optimise their fleets, and achieve EU compliance now and in the future.
Embracing real-time analytics and smart city data
Real-time analytics are emerging as a vital solution to help fleet managers better streamline their operations and quell EV range anxiety. Deploying this technology introduces proactive adjustments and optimisation based on current conditions. This leads to greater efficiency, cost savings, and improved driver performance in EVs and ICE vehicles within a mixed fleet.
Incorporating real-time traffic congestion or road closures, real-time analytics dynamically adjust routes to minimise delays and energy consumption. This is critical for EVs in high-traffic areas and where range anxiety is a concern. They can also optimise routes for fuel-based assets in a mixed fleet, reducing fuel consumption and costs. What’s more, as we look to the future, “smart city” data will become available, increasing the accuracy of real-time analytics. By collecting data from various sources within a city or region, such as traffic sensors, weather stations, and data from connected vehicles, fleet operators will gain a more accurate and comprehensive understanding of their fuel and charging needs.
Streamlining payments
Another critical solution that can simplify the complexities of managing mixed-energy fleets is centralised payment systems. With a diverse selection of electric charging networks being integrated with existing traditional fuel payment systems, investing in a tailored payment system can facilitate the management of mixed-energy fleets and help with cost savings and efficiencies.
These advanced systems can help simplify billing across multiple charging networks and utilities, synchronise fuel and charging payments, and offer drivers a single, convenient payment method whether they charge at home or on the road. This removes complexities for reimbursement and aids in reducing administrative burden.
Purpose-built fleet cards are one example of new payment systems that consolidate charging and utility payments, helping to remove administrative overhead. This is often combined with specialised software that unifies data from EV charging and traditional fuel purchases, optimising fleet deployment and improving financial and environmental performance.
Conclusion
The speed of transition to mixed fleets — and eventually complete fleet electrification — will look different for every company as each operator finds the best way to balance decarbonisation with operational and financial efficiency. This will depend on numerous factors, such as the availability of charging infrastructure across regions and fleet tools. With EU regulations pushing ahead, all fleet operators must prepare for the future, embracing innovative technology to maximise their progress.
As Chief Operating Officer, Americas Payments & Mobility,
