Wales' EV fleet avoids £3.7m in diesel costs as public sector shifts to electric
The Welsh public sector's electric vehicle (EV) fleet is avoiding the purchase of around 2.4 million litres of diesel each year, worth up to £3.7 million, according to analysis by the Welsh Government Energy Service. After accounting for electricity charging costs, the fleet is estimated to deliver annual net energy savings of between £1.4 million and £1.9 million, depending on the tariff paid by the operating body.
The analysis covers 2,045 electric vehicles across the Welsh public sector, including cars, light commercial vehicles, minibuses, refuse collection vehicles, heavy commercial vehicles, buses and specialist plant. The fleet is estimated to use 8.6 GWh of electricity annually while avoiding around 2.423 million litres of diesel purchases.
Beyond direct cost savings, the transition is reducing public bodies' exposure to global fossil fuel prices. During a 100-day oil price shock similar to the recent US-Iran related market impacts, the analysis estimates that the EV fleet would avoid around £200,000 to £280,000 in additional diesel costs.
By shifting fleet energy demand from diesel to electricity, public bodies can also make greater use of increasingly cleaner UK-generated electricity and reduce their exposure to international oil markets and geopolitical disruption. The Welsh Government Energy Service identifies smart depot systems, on-site renewable generation, battery storage and shared charging infrastructure as potential ways to increase savings and resilience.
The fleet is also estimated to avoid around 6,151 tonnes of CO?e in well-to-wheel greenhouse gas emissions each year, with an indicative carbon value of approximately £1.7 million. The analysis notes that some vehicles may be charged using on-site renewable electricity, which could further reduce emissions depending on the emissions accounting basis used.
Jim Cardy, Senior Programme Manager at the Welsh Government Energy Service, said the figures show that EVs are helping public bodies reduce emissions, operating costs and exposure to volatile fossil fuel markets. He added that the next stage would involve supporting further fleet electrification while developing smart energy systems, including renewable generation, battery storage and shared charging infrastructure.
Llyr Gruffydd, Cabinet Minister for Rural Resilience and Sustainability, said the analysis demonstrates benefits for public services through lower diesel use, reduced operating costs and lower exposure to rising fuel prices. He also highlighted the role of the Welsh Government Energy Service in supporting public sector organisations in strengthening energy resilience and reducing emissions.