Analysis by the Welsh Government Energy Service estimates that the Welsh public sector electric vehicle (EV) fleet has saved more than a million pounds in diesel costs.
After allowing for the cost of charging the vehicles, the annual cost saving is calculated to be in the range £1.4 million to £1.9 million depending on the tariff paid by the operating body.
Figures show that during a 100-day oil price shock, similar to the recent US-Iran related market impacts, the Welsh EV fleet would avoid around £200,000 to £280,000 of additional diesel costs.
The results come from data across the Welsh public sector fleets, which includes 2,045 electric vehicles: cars, light commercial vehicles, minibuses, refuse collection vehicles, heavy commercial vehicles, buses and specialist plant.
Using fleet-category based assumptions for mileage, displaced diesel consumption and EV electricity use, the analysis estimates that the public sector has avoided purchasing 2.423 million litres of diesel each year, equivalent to £3.7 million.
8.6 GWh of electricity is used by the EV fleet each year, so there is a net saving of £1.4 million to £1.9 million, based on large and very large non-domestic electricity price assumptions.
The Welsh Government has said that making the switch is reducing the Welsh public sector’s reliance on diesel, which is exposed to international oil markets and geopolitical disruption. By shifting fleet energy demand from diesel to electricity, public bodies can reduce exposure to sudden fuel price spikes and make greater use of increasingly cleaner UK-generated electricity.
The EV fleet is also helping to remove diesel exhaust emissions from public service locations across Wales, including depots, schools, hospitals, town centres and residential areas. The EV fleet is also estimated to save around 6,151 tonnes CO₂e of well-to-wheel greenhouse gas emissions each year, with an indicative carbon value of approximately £1.7 million.
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."
