4th sustainable equipment meeting

Energy crisis: the overall cost of thermal equipment is rising sharply and approaching that of electrical equipment

On 1er February 2023, stakeholders in the construction equipment sector met for the 4th Sustainable Equipment Meeting, an event dedicated to the energy transition of construction equipment. On this occasion, equipment manufacturers, rental companies, construction and civil engineering companies and professional federations studied an update of the total cost of ownership (TCO) of thermal and electric equipment. The example of the 2.5 tonne excavator reveals a narrowing gap between the two engines, with the life cycle of an electric excavator now being 5 to 10% more expensive than its combustion equivalent. One crucial parameter remains unchanged: the purchase cost of electric equipment remains considerably higher.

Anticipated alignment of the overall cost of thermal and electrical equipment

The global energy crisis and the disruption of energy prices were the logical topics for discussion at the 4th Sustainable Equipment Meeting. For the occasion, the study conducted for the last three editions by Carbone 4 on the TCO (Total Cost of Ownership) comparing thermal and electric equipment was updated in the light of technological progress and, above all, of the increase in energy prices.

While the market was expecting the cost of electric equipment to decrease due to the effect of scale and technological progress, the alignment of costs between electric and combustion engines for a 2.5 tonne excavator projected for 2020 in the medium term has been accelerated by the increase in the price of RNG (+65% between 2020 and 2023). This narrowing gap, which now places electric equipment between 5 and 10% more expensive than its internal combustion equivalent, could even be reversed if we take into account the elimination of tax rebates on NGVs planned for 1er January 2024.

The ever-increasing initial investment in electrical equipment

Exploring all the hypotheses mentioned (price of NGV, changes in NGV taxation, technological progress in batteries, cost of electricity) only brings the TCO of the two types of equipment closer together through the increase in costs per use. The initial investment (manufacture, battery, battery replacement) remains much higher (+40% for a 2.5 T excavator) for electric equipment when its operating cost is two to three times lower than its combustion equivalent over the life of the equipment.

The 4th Sustainable Equipment Meeting, rich in testimonies and feedback from a wide range of players in the sector, including Bénédicte Barbry, Mobivia’s Director of Public Affairs and Sustainable Development, highlighted the impact of the socio-economic context on the transition underway and the benefits of working on an ecosystem scale.

Olivier Colleau,

CEO of the Kiloutou Group:

"This edition has made it clear that maintaining our energy transition course is crucial in the face of the crises we are experiencing. However, we are evolving in an environment that is becoming increasingly complex with the dual injunction of acceleration and sobriety. The synchronisation and intensification of our efforts is essential in the long term. I am convinced that our community is ready to evolve and to structure itself into an active collective capable of further experimenting with the solutions that emerge from the studies we have conducted so far."

The Sustainable Equipment Players have agreed to meet in October 2023 for a 5th edition of the Meetings. In view of this next meeting, they are working on structuring their community to find a daily work rhythm and ensure the permanence of exchanges and experiments within the collective.

About Kiloutou :

Kiloutou, Europe’s third-largest generalist equipment rental company in Europe and a major player in the sector in France, has for over 40 years combined economic performance with environmental and human values to promote the most innovative solutions for an increasingly diversified customer base: construction and civil engineering companies, independent tradesmen, SMEs, local authorities, and industry. For its development, the Kiloutou Group relies on the expertise of more than 7,000 team members serving over 400,000 customers in seven countries across Europe, in France, Poland, Italy, Spain, Germany, Denmark (GSV) and following the acquisition of Grupo Vendap, Portugal. The Kiloutou Group network consists of 600 branches and fields the largest equipment range in the market, with over 1,000 product references and more than 350,000 pieces of equipment (excluding accessories) in four main product categories: earth-moving, access, utility vehicles and tools and light equipment.

Kiloutou media contact :

Mélany Mandikian – 07 88 08 73 06 – kiloutou@havas.com

4th sustainable equipment meeting