Analysis by the Welsh Government Energy Service estimates that the Welsh public sector electric vehicle (EV) fleet is now avoiding the annual purchase of diesel costing up to £3.7 million (2.4 million litres).
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.
The EV fleet is helping public bodies reduce operating costs at a time of tight budgets and has reduced their exposure to volatile global fossil fuel prices. 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.
Operational and financial impact
The analysis is based on data across the Welsh public sector fleet. That fleet 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:
- 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 benefits
The transition to electric vehicles is reducing the Welsh public sector’s reliance on diesel, a globally traded fuel 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. Further savings and resilience can be achieved by combining EV charging with smart depot systems, on-site renewable generation, battery storage and shared charging infrastructure.
This approach can help public bodies move from simply replacing vehicles to developing more resilient local energy systems that support fleet operations, reduce fuel-price risk and make better use of public sector assets.
Air quality and emissions benefits
The Welsh public sector EV fleet is now directly removing diesel exhaust emissions from public service locations across Wales, including depots, schools, hospitals, town centres and residential areas. By replacing diesel vehicles with zero emission vehicles, public bodies are cutting local tailpipe pollution in places where fleet activity happens every day.
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. Many 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, 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.
