As the commercial transportation industry shifts toward zero-emission vehicles (ZEVs), fleet operators are evaluating new tools and technologies to streamline the transition. The National Renewable Energy Laboratory (NREL) recently released an enhanced version of its Transportation Technology Total Cost of Ownership (T3CO) tool, designed to simplify cost calculations for fleet managers aiming to maximize efficiency and minimize expenses. With a focus on operational needs, the tool equips fleet operators with a data-driven approach to make informed decisions on ZEV investments, including battery-electric, hybrid, and hydrogen fuel cell vehicles.
Switching from diesel to electric or other zero-emission vehicles offers a pathway to substantial cost savings, with ZEVs often boasting up to 70% lower fuel costs and requiring less frequent maintenance. In urban delivery contexts, ZEVs can reduce ownership costs by up to 25% over their lifecycle, presenting fleet operators with a financially sound alternative to traditional combustion engines. However, the upfront capital costs and complex charging logistics of ZEVs present new challenges for fleet managers who require precise cost breakdowns before committing to an extensive overhaul.
The T3CO tool helps fleet operators tackle these challenges by providing an in-depth view of vehicle-specific capital and operating costs as well as often-overlooked opportunity costs. Alicia Birky, an NREL researcher leading the T3CO project, highlighted the tool’s value for fleet operators: “Fleet managers need a detailed, realistic TCO analysis that aligns with their specific routes, duty cycles, and operational demands.”
Fleet operations are multifaceted, requiring customized solutions to optimize costs. T3CO’s flexibility is a major advantage, offering fleet operators the ability to run rapid, accurate analyses tailored to their unique scenarios.
The batch mode capability empowers fleet operators to simulate thousands of vehicle configurations in a single session, allowing managers to swiftly compare various ZEV models and identify the most cost-effective options that best align with their specific operational needs.
In addition to batch processing, the optimization module evaluates the costs and benefits of energy-saving features, such as lightweighting and aerodynamics, balancing these against expenses like larger motors and battery packs. This enables fleet operators to pinpoint the most economical configurations for their duty cycles, helping them avoid unnecessary costs on features that may not provide sufficient return.
Moreover, T3CO’s custom scenario planning allows operators to input real-world variables, including vehicle type, specific routes, and payload requirements. By reflecting actual use cases in its calculations, T3CO provides a more accurate understanding of vehicle costs over time, from initial purchase to ongoing operational expenses.
These customizable features allow fleet operators to identify the most cost-effective decarbonization pathways while balancing performance and operational requirements.
While TCO calculations often focus on tangible expenses like purchase price and maintenance, T3CO introduces an additional layer: opportunity costs. This innovative feature captures “soft” costs, such as potential lost productivity during charging and any capacity loss due to battery weight. This is especially crucial for fleet operators who face tight schedules, where downtime and payload limits directly impact profitability.
For example, a delivery fleet may need to consider the cost implications of vehicle downtime during mid-shift charging, especially if vehicles run on shorter duty cycles. The opportunity cost analysis helps fleet managers evaluate how ZEV technology aligns with their scheduling needs, ensuring that fleet efficiency isn’t compromised by unexpected downtime or capacity limitations.
For fleet operators, the transition to ZEVs doesn’t happen overnight. Recognizing this, T3CO offers capabilities that support gradual, phased decarbonization strategies. Fleet managers can assess which vehicles or routes are best suited for immediate electrification, identifying cost-effective entry points that can be implemented without disrupting operations. As new technologies become available, such as dynamic wireless charging, T3CO can further assist in determining cost savings associated with these advancements.
T3CO’s alignment with NREL's Fleet Research, Energy Data, and Insights (FleetREDI) platform and the Fleet DNA database enables operators to anticipate future expenses and incorporate real-world operational data into their financial forecasts. Harish Panneer Selvam, an NREL researcher who contributed to the tool’s development, explains, “We estimate customized TCO for specific vehicles, in specific locations, and for specific operations, allowing fleet managers to make decisions that fit their actual use cases rather than hypothetical scenarios.”
