The transition from diesel to electric has not only spawned a new market for electric vehicles themselves, but also new business models – namely trucking as a service and Charging-as-a Service. However, besides the obvious, what does the latter service offer to fleets seeking to decarbonise their operations?
To find answers, we spoke to Alan White, Head of Emerging Transportation Platforms at technology giant Siemens, one of a number of companies who currently provide Charging-as-a-Service through its Depot360 offering. Given White is also based in California, we also took the opportunity to ask about how the electric transition is unfolding in The Golden State.
What is the value proposition of Charging-as-a-Service?
We began our chat with Siemens’ Head of Emerging Transportation Platforms by asking how road transport companies can optimise their electric fleets.
This prompted White to explain that Charging-as-a-Service is not simply about having access to chargers, but also learning about optimal charging, fleet and software management:
“Most people who manage fleets don’t necessarily know how to manage the charging operations. It’s a new skill set, so they don’t always have people there that know how to manage the chargers, the electricity or the software,” White told Trans.INFO.
In order to bring about this optimisation, White says that Siemens sends out engineers to ensure chargers are working as well as they should. The company also checks that the carriers’ data is integrated well with the telematics system, and finds the best energy pricing systems both on the wholesale and retail side.
Thanks to this, White says carriers can reduce the cost of the electric vehicles and associated infrastructure, thereby making the economics work better once vehicles and chargers are both ready.
White also told Trans.INFO that the service is initially aimed at those companies offering urban distribution and passenger transport services:
“We’re not starting with 44-ton trucks, but rather a particular set of use cases like municipal buses, school buses, last-mile trucks, and service vans. So, we look at these companies and their routes and oftentimes they’re very dependable routes meaning we can work out exactly what they need,” said White.
Moreover, White stressed that the service is not only aimed at utilising existing infrastructure, but also finding the best charging setup for companies looking to invest in their own infrastructure:
“We have to help them plan accordingly,” said White. “That means helping to design the infrastructure so that when the electric vehicles come in, they can start effectively from the get-go. The most important thing is making sure that they can operate everything as effectively as possible once the infrastructure is in place.”
White emphasised that Siemens is focusing more on the optimisation at depots and yards rather than access to public charging points:
“Our focus with Depot360 is on managing what fleet operators can do on site at their depots,” stated Siemens’ Head of Emerging Transportation Platforms.
Besides this, White says Siemens are also utilising AI in order to help with electric fleet optimisation:
“We’ve essentially applied a new business model, based on the new technology that we’re developing – an AI software platform that identifies data flows between charging, energy, and telematics, and then finds the most optimal way to manage electric fleets,” said White.
How does the AI system work?
Naturally, given the common usage of AI in tech marketing, mentions of artificial intelligence are often met with scepticism. So we asked White what the AI model is actually for. In response, Siemens’ Head of Emerging Platforms said:
“For about a year now, we’ve been able to predict the best way to manage vehicles based on energy price, when they need to get out the door, and how much charge they need. So we’re using AI to proactively identify needs. Additionally, it’s important the carriers know that we’re looking to reduce the risk of the transition to electricity. From a cost standpoint, from an operational standpoint, and ultimately from an energy standpoint, we really feel that AI can help our customers operate in a much better way, freeing up the fleet management team for other high value tasks.”
So what can optimal charging actually look like in practice?
One example could be that of a typical last-mile delivery company. According to White, such vans can be charged at a lower cost overnight using chargers that run at as little as 11 kilowatts:
“In last mile applications, vehicles often go out at 6am and come back at 6pm, giving them 12 hours to charge. By examining both the vehicle and the route, it might be possible to fully charge with an A/C charger at as little as 11 kilowatts. It’s a case of looking at the time the truck or van is idle and can be charged, and working out how much power is needed during that time. The key is to charge at the lowest cost during that time.”
California emissions impact
Finally, we asked White about how the electric transition is developing in California.
Siemens’ Head of Emerging Transportation Platforms told Trans.INFO that the tough regulations have challenged industry, but also stressed that public funding has helped businesses to make the switch to electric:
“Regulations have certainly challenged the logistics industry as it looks to make the transition happen smoothly and cost effectively. California, in its wisdom, and the state government, is providing funding for electric trucks to assist with the economics. The California Energy Commission is doing all it can to reduce the energy per kWh for these trucks, whether it be by demand charges or the distribution of energy sources. In addition, the IRA (Inflation Reduction Act) that was put in place federally is also helping by providing grants for public charging.”
On the other hand, White also warned that more infrastructure and optimisation will be needed to ensure that fleets complete the move to zero-emission vehicles in time:
“We need the utilities to make sure the interconnection is done in a timely fashion, as all these elements must come together and work together. Passenger and goods transport companies are looking at the same challenges. The electric transition can’t simply be based on the view that mandates are going to lower costs. Operational efficiently is also key, and we’re excited to be a part of that opportunity.”