Electric vehicles saving Welsh public sector up to £1.9m a year, analysis finds

Electric vehicles used by public bodies across Wales are estimated to be saving up to £1.9 million a year in energy costs and avoiding the purchase of more than two million litres of diesel.

The Welsh Government Energy Service calculated the savings based on data from 2,045 electric vehicles currently operating across the Welsh public sector, including cars, vans, buses, refuse vehicles and specialist machinery.

They highlighted that the electric vehicle (EV) fleet is now avoiding the annual purchase of diesel costing up to £3.7 million which, allowing for the cost of charging the vehicles, means an annual cost saving in the range £1.4 million to £1.9 million depending on the tariff paid by the operating body.

The analysis also estimates that switching from diesel has reduced the public sector’s exposure to changes in global fuel prices, with the EV fleet potentially avoiding between £200,000 and £280,000 in additional diesel costs during a 100-day oil price spike.

Using fleet-category based assumptions for mileage, displaced diesel consumption and EV electricity use, the analysis calculates:

• 2.423 million litres of diesel purchases avoided each year

• 8.6 GWh of electricity used by the EV fleet each year

• £3.7 million of diesel not purchased annually, using the latest ex-VAT diesel price

• £1.4 million to £1.9 million net energy cost saving per year, based on large and very large non-domestic electricity price assumptions

• £200,000 to £280,000 of additional diesel price exposure avoided during a 100-day oil price shock

Energy security

The Welsh Government has said that the transition to electric vehicles is reducing the country’s public sector’s reliance on diesel which, as a globally traded fuel, is exposed to international oil markets and geopolitical disruption.

By shifting fleet energy demand from diesel to electricity, it is hoped that public bodies can reduce exposure to sudden fuel price spikes and make greater use of increasingly cleaner UK-generated electricity.

Based on the analysis, further savings could come from combining EV charging with smart depot systems, on-site renewable generation, battery storage and shared charging infrastructure.

Air quality and emissions

The switch to electric vehicles also means diesel exhaust emissions are being removed from locations where public sector fleets operate, including depots, schools, hospitals, town centres and residential areas.

It is estimated that the EV fleet saves around 6,151 tonnes of CO₂e in well-to-wheel greenhouse gas emissions each year, with an indicative carbon value of approximately £1.7 million.

It notes that emissions could be reduced further where vehicles are charged using on-site renewable electricity, depending on the emissions accounting method used.

‘Practical benefit’

Jim Cardy, Senior Programme Manager, Welsh Government Energy Service, said: “The Welsh public sector is already seeing a practical benefit from the transition to electric vehicles. These figures show that EVs are not just reducing emissions, they are also helping public bodies cut operating costs and reduce exposure to volatile fossil fuel markets.”

“The next stage is to build on this progress by supporting more of the Welsh public sector fleet to transition to zero emission vehicles, while developing the smart energy systems needed to support them. Smart depots, on-site renewable generation, battery storage and shared charging infrastructure can help increase savings, strengthen energy security and make public sector fleet operations more resilient.”

Cabinet Minister for Rural Resilience and Sustainability, Llyr Gruffydd said: “This analysis shows that the transition to electric vehicles is delivering real benefits for public services across Wales.

“This new government is committed to further adoption of electric vehicles across public services; reducing diesel use, cutting operating costs, reducing exposure to rising fuel prices and making better use of public money.

“The Welsh Government Energy Service has played an important role in supporting this progress, helping public sector organisations make practical changes that strengthen energy resilience, reduce emissions and deliver long-term value for Welsh communities.”

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