In December, local government fleet managers gathered in Bathurst for an EV Drive Day, featuring a presentation by Michael Mills, Fleet Manager at Essential Energy. Sharing candid insights from Essential Energy’s journey toward electrification, Mills offered practical advice to help others navigate the challenges and opportunities of transitioning to electric vehicles (EVs).
Essential Energy’s Role and Fleet Overview
Essential Energy owns and operates the electrical distribution network across 95% New South Wales and parts of Queensland, with over 1.4 million power poles and a workforce of around 3,700. Its fleet consists of approximately 3,600 vehicles spread across 96 depots. Electrifying its fleet is part of Essential Energy’s commitment to supporting the adoption of electric vehicles across region, rural and remote communities.
Highlighting what the transition has brought to the organisation, Mills explained:
“Essential Energy as an organisation is transforming as we support the energy transition while continually focusing on the safe and reliable delivery of electricity to our communities. Just like our network, our people and our fleet are interconnected through that supply of energy. Fuelling our fleet using that electricity is the most logical step as we globally transition to renewable energy generation, and so we are transitioning to EVs where it is practical and safe to do so.”
Key Drivers for Electrification
Mills outlined several motivators for Essential Energy’s EV transition, starting with alignment to its corporate strategy by facilitating the uptake of electric vehicles and maximising load on the network. Incorporating EVs into the fleet, supports the organisation’s goals of putting downward pressure on customer costs and becoming more energy efficient.
Highlighting reduced fuel costs and improved vehicle efficiency, he said, “The energy efficiency of EVs compared to ICE [internal combustion engine] vehicles offers significant savings. Safety also plays a central role. Modern EVs feature the latest safety technologies, ensuring improved protection for drivers and the public. Social responsibility is another driver, with Essential Energy also facilitating the roll out of more EV charging across regional, rural and remote NSW to support customers through their own transition.”
Mills emphasised that the transition isn’t solely focused on meeting internal targets, but about demonstrating leadership in electrification.
Key Lessons Learned
Mills shared practical insights gained during Essential Energy’s ongoing EV journey, providing valuable guidance for fleet managers.
- Focus on End-of-Life Replacements – Rather than retrofitting or prematurely replacing vehicles, Essential Energy prioritises EV adoption for vehicles nearing the end of their life cycles. This phased approach helps the organisation stay within budget and ensures that newer EV models with improved capabilities are considered.
- Prioritise Depot Charging – One of the most significant learnings was the importance of depot charging infrastructure. Mills observed that employees preferred charging at depots rather than relying on public infrastructure, as it provided a sense of security and convenience. This insight led Essential Energy to prioritise installing chargers across its depots.
- Use Data to Guide Decisions – Essential Energy leverages telematics data to assess EV suitability for specific roles. Their internal evaluation tool analyses vehicle usage patterns and matches them with appropriate EV models, ensuring a data-driven approach to decision-making.
- Clear Scope and Focus – Mills stressed the importance of focusing on vehicles that are practical for EV replacement. For example, high-payload vehicles remain out of scope until suitable EV options become available. Instead, the organisation focuses on assets like forklifts, line trucks, tipping trucks and UTVs, where electrification is cost-effective and feasible.
- Engage the Workforce – Transitioning to EVs requires employee buy-in. Mills emphasised consistent communication, early engagement, and transparency. Sharing successes and setbacks openly has been a cornerstone of their approach, fostering trust and collaboration.
Overcoming Challenges
While Essential Energy has made significant progress, challenges have emerged. Ambient temperature impacts EV performance, particularly in colder regions, where range reductions were more significant than anticipated. Another hurdle was coordinating infrastructure and vehicle delivery. Mills advised installing chargers ahead of vehicles to ensure readiness and avoid operational delays.
Towing and payload requirements also posed challenges, as these significantly reduce EV range. Essential Energy addresses this by thoroughly testing EVs under various conditions to validate manufacturer claims and ensure suitability.
Recommendations for Fleet Managers
Mills offered actionable advice to fleet managers embarking on their EV transition.
Understand Fleet Usage and Energy Requirement – Use telematics to map usage patterns and determine energy needs, ensuring informed decisions on vehicle selection and charging infrastructure.
Engage Employees – Include employees in the transition process to address concerns, share information, and foster a sense of ownership.
Test and Trial – Thoroughly test EV models in real-world conditions to validate performance and suitability for fleet operations.
Adopt a Phased Approach – Replace vehicles nearing the end of their life cycles and focus on incremental progress rather than rushing to transition the entire fleet.
Be Transparent About Challenges – Share both successes and failures to create an open learning environment and build trust within the workforce.
Essential Energy’s Progress
Essential Energy has successfully integrated EVs into its pool car fleet, along with several UTVs for field operations and an electric prime mover delivering tools and equipment on the NSW North Coast. Additional electric vehicles are being used for operational purposes at Essential Water in Broken Hill, which owned and operated by Essential Energy. Charging infrastructure continues to expand, with a mix of AC and DC chargers deployed across depots. These efforts reflect a strategic and thoughtful approach to electrification, balancing immediate needs with long-term goals.
Inspiring Change in the Broader Community
Mills concluded his presentation by encouraging fleet managers to view their EV transitions as part of a larger sustainability effort. Essential Energy’s leadership in this space demonstrates how organisations can approach electrification pragmatically while sharing learnings to support others.
“It’s not about getting everything right the first time. It’s about listening, learning, and improving as you go,” Mills said.
By taking a measured, data-driven approach, Essential Energy is paving the way for a more sustainable future while offering a roadmap for others to follow.
