Resolving power grid bottlenecks on your journey to electric

How can shippers ensure that power grid bottlenecks don’t hinder their freight electrification journey? In this article, we explore the types of infrastructure investments they can make now – while there is a moment in time to seize the opportunity – and we explain how digital intelligence is enabling some of the world’s leading shippers to make the switch today.

While power grid bottlenecks exist, it is a myth that such bottlenecks must prevent shippers from making the switch to electric road freight. The truth is that there are a range of solutions ready to be implemented – leveraging today’s technology – that will unlock the capacity shippers need to transform their freight operations. These range from timely infrastructure investments that will keep businesses ahead of the curve to digital tools that increase fleet efficiency and facilitate access to available charging capacity.

What are power grid bottlenecks?

In electric freight, power grid bottlenecks – or capacity bottlenecks – refer to limitations in the power grid's ability to support the charging needs of electric heavy-duty vehicles. The existing power grid may not have sufficient capacity to handle the high electricity demand required for charging large numbers of electric freight vehicles, especially during peak times.

While addressing bottlenecks requires investment in both grid infrastructure and charging infrastructure, there are measures shippers can take to bypass such capacity limitations – enabling them to proceed with the critical project of transforming their freight operations from diesel, or alternative fuels, to electric.

Shippers can stay ahead of the curve

“The statement that ‘there is not enough capacity’ is a myth – or a straw man for inaction,” says David Hallgren, General Manager – Energy & Charging Infrastructure at Einride. During a recent Einride Webinar, he explained that it all comes down to careful planning: “Yes, capacity limitations in the grid are a concern, but working together to address them is definitely doable.”

David stresses that the power grid is a dynamic system, not a static one. His advice to shippers is to think about optimization and right-sizing: “Where should charging be placed to enable certain corridors and networks in your supply chain? And how do you integrate it most effectively with the transport system and your planning tools?” He urges them to consider such questions now, as it is clear that electric freight is key to decarbonizing freight transportation.

When it comes to provisioning necessary charging infrastructure, shippers can build infrastructure on their own sites with the expertise and support of Einride. They can also consider accessing already available charging capacity – via sites such as Einride Smartcharger Stations.

For businesses that build out charging capacity on their own fenced sites, it’s worth bearing in mind that such charging infrastructure can be made available to other businesses. This opens up an additional revenue stream while also increasing the hardware utilization – making for a more cost-effective infrastructure deployment. It also supports the electrification demand of a given geography, enabling shippers to play a part in the broader electrification of road freight. The early actors will leverage the greatest benefit.

“Shippers typically, whether they own or lease, have assets in the form of land, buildings, grid connections, and in some cases, local energy generation and storage. These can all play a part in making the transition smoother and more efficient for their needs,” David explains. “Almost all of our customers who are early movers in this transition have utilized installations on their own facilities as a complement to shared infrastructure to have the most efficient deployment.”

“There is a window of opportunity at the moment to get quick wins and stay ahead of the curve,” says David. “Scaling takes time, but it is worth the effort you invest. Indecision now can become a challenge to scale in the future.”

Solving infrastructure challenges with today’s technology

Henrik Holland, Global Head of Mobility at Prologis, echoes David Hallgren: “Charging infrastructure really does not have to be a problem. There are real challenges, but there are also real solutions to overcome those challenges.”

There is a significant increase in required charging capacity across electricity networks globally, says Henrik, leading to high demand for investment in transmission and distribution infrastructure: “The market for medium and heavy-duty EVs is going to grow rapidly – from almost non-existent just a few years ago to approximately 20% to 35% market share in terms of new vehicle sales by 2030.”

Henrik believes utilities have a challenge ahead of them to keep up but says it is an engineering challenge, not a technological one. In other words, the technology needed to navigate this transformation exists; it just needs to be implemented with foresight regarding what’s to come. Partnerships are key, he says. “The electrical grid is already very constrained. So now is really the time where solutions such as on-site solar storage and microgrids can really solve some of these problems.”

Loosening bottlenecks with digital intelligence

The engineering challenges presented by power grid bottlenecks require both physical infrastructure solutions and digital infrastructure solutions. One of the benefits of Einride’s digital intelligence is its monitoring capabilities – this applies to both energy supply and charging infrastructure:

“Is everything working as intended? What's the grid capacity? What are the energy prices? By keeping a check on these, we can take proactive actions when needed,” says David, highlighting some of the planning capabilities of Einride’s digital freight platform. It allows shippers to leverage data and AI to streamline strategic and tactical planning.

• Improved connection to the grid

Einride’s digital platform ensures that the charging network can handle the grid connection and manage a variable load. “This means that teams can respond to the needs of the grid, and they can redeploy excess capacity when it becomes available – without that affecting reliable on-time shipments,” says David.

• Increased asset utilization

Data and AI don’t only aid long-term planning; they also ensure charging infrastructure and electric vehicles are well utilized on a day-to-day basis. David: “That not only helps with potential capacity constraints but also – of course – with cost efficiency.”

• Full control of chargers

Digitalization offers the potential for remote or automated control of the charger. “This can mean automatically stopping charge sessions when the targeted state of charge – the level needed to safely reach the next destination – has been achieved. It can also dynamically reallocate power to prioritize other vehicles that need to charge faster,” says David. “All of this hinges upon tactical and real-time operational planning of charge sessions with advanced scheduling algorithms.”

Einride’s digital freight platform caters to all four steps of charging control: charger availability monitoring, charging session status, control of charging hardware, and scheduling of future charging sessions. It’s intelligent charging, powered by AI.

Ensuring low emissions with renewable energy

When it comes to energy and charging, access to grid capacity isn’t the only concern from the shipper’s perspective. Another important consideration is the energy mix. Using battery electric vehicles doesn’t automatically mean the freight transportation is actually “low in emissions” – since the energy may have been generated using fossil fuels. Thus, an important consideration for shippers and fleet operators is access to renewable energy.

“Renewables are crucial for achieving zero emissions in electric transportation,” said Einride’s VP Energy Solutions Marie Knutsen-Öy, who moderated the webinar. She explains how renewable energy can be retrospectively certified, regardless of what type of energy was drawn from the power grid: “When we draw energy from the grid, in those cases we do, we get whatever is available in the grid. So the mix can be renewable or it can be non-renewable or it can be something in between – because electricity is flowing wherever there is the lowest resistance. Ultimately we can claim the energy as renewable by purchasing renewable energy certificates.”

The takeaway for shippers is that by having the right charging infrastructure set up – or having adequate access to available charging capacity – shippers can be well prepared to leverage renewables as they become available.

Leading shippers are making the switch today

Einride is the transformation partner to renowned shippers who are now on the front foot when it comes to the deployment of charging infrastructure. In the US, GE Appliances has been able to go electric on a significant share of their transports through installations on their facilities where no shared infrastructure is available. In Europe, Lidl has enabled electrification of their distribution center to store lanes by installing charging equipment at their distribution facilities.

Another example is Carlsberg Sweden. Andreas Andersson, its Head of Transportation, shares some advice to businesses thinking of making the switch: “The first thing you need to do is to investigate how to install charging infrastructure for the particular flow in scope. Look at how to secure electricity and how to charge your vehicles, and ensure that you have that infrastructure in place before moving forward with the process. In our case, Einride took care of all these aspects.”

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To learn more about energy and charging infrastructure for road freight, watch our Einride Webinar featuring David Hallgren, Henrik Holland, and Marie Knutsen-Öy – now available on demand.