From mid-2027, Lidl will be able to supply all 440 shops using electric transport. This is a first for the food retailer, according to Minister Karremans at the opening of the latest fast charging station. Thanks to this plaza with twelve charging stations at the regional distribution centre in Almere, Lidl can already serve all shops in Flevoland and North Holland, including Texel, with electric trucks. Head of logistics Albrecht de Glee of Lidl Netherlands is proud of this milestone: "The business case has only become more positive in recent months."
To supply the 440 shops, Lidl uses transport partners, who deploy a total of 180 trucks for this purpose. Currently, half of them already run entirely on electricity. So in a year's time, the other half should also have an electric motor with battery pack. "By investing smartly in electric transport, we keep grocery prices low. With this, we show that sustainability and affordability go perfectly well together," said CEO Peter de Roos of Lidl Netherlands, during the opening of the fast charging plaza in Almere.
Besides Almere, Lidl has five more regional distribution centres in the Netherlands. All of these already have a charging plaza, although not all of them are at full capacity yet. "We aim for a charging plaza with 12 charging stations at each DC. We have divided the construction of these into two phases: 6 charging stations in the first phase and 6 charging stations in the second phase. The second phase has not yet been completed everywhere. That should happen this year," explains Albrecht de Glee, head of logistics at Lidl Netherlands.
Turning point electric transport
With six regional DCs spread across the Netherlands, all 440 shops are within the action radius of an electric truck. "Our DCs are situated so that the distances to the shops are relatively short," explains De Glee. "What helps when it comes to electric transport is that we deliver all goods from these regional DCs. We don't have central distribution centres for frozen products or slow-movers, for example, like some other food retailers. That makes our distribution network very sustainable."
In discussions about electric transport, people often talk about the tipping point: the point at which driving on batteries becomes cheaper than driving on diesel. Lidl has reached that tipping point, agrees De Glee. "The business case is positive. And with rising fuel prices, it has only become more positive in recent months. Also look at government measures coming up, such as the truck levy on 1 July. Electric driving will then become even more advantageous."
Three times as expensive to buy
However, electrification means that transport partners will have to invest in electric trucks, which are three times more expensive to buy than a diesel vehicle. De Glee points out that the choice for electric transport was made a long time ago in close consultation with the transport partners. "From the very first moment, now five or six years ago, we involved our transport partners. Remember that you don't buy a truck for two years, but for a much longer period. That's why transporters themselves also ask for clarity. They want to know what the strategy is and when to invest in what."
Initially, the strategy envisaged full electrification in 2030. The target date has now been brought forward three years. "We have made good agreements with our transport partners about this, as we always do. We sign long-term contracts with them. Most carriers have been driving for us since time immemorial, some from the beginning," De Glee explains. "Of course, they have to invest heavily in electric transport, but we are very transparent about that on both sides. We all know what a truck costs, what electricity costs and what the depreciation is."
Fast charging with megawatt charger
Electric transport requires planning adjustments, Lidl has experienced. "The main change is that we now have to take charging time into account. A diesel truck is refuelled in a few minutes, but charging an electric truck takes a lot longer," says De Glee. "On the other hand, the range is still increasing. Our first heavy electric truck could cover 300 kilometres with a full battery. Nowadays, that's a lot more, so they only need to go to the charging station once every two days. That already makes planning a lot easier."
What makes planning even easier is the 'megawatt charger' that enables charging speeds of up to 1.2 megawatts. Currently, no truck can handle such high charging speeds, but that is a matter of time. "That one may not be for daily use, but if needed, we can deploy it to charge a truck within 20 minutes," De Glee knows. "It is pioneering. A lot also depends on the lifetime of the battery pack and the outside temperature. We now know from experience that charging capacity can be very different in winter than in summer. We have to take that into account as well."
Seeing day edges with electric transport
That the purchase price is three times as high means trucks have become capital goods even more than before. And capital goods should be used to the maximum. "Indeed, electric trucks should be run for as many hours as possible. That makes the business case positive," says De Glee. "What helps is that these trucks are a lot quieter. After all, most shops are in city centres with houses around them, which means we have to take noise standards into account. Now we can look for the daytime edges a bit more. That also contributes to road safety, when we don't have to go into town during rush hour."
As much as possible, Lidl will generate its own electricity to charge trucks, but this will not always be possible. "Again, that depends on the time of year. Sometimes we have enough of our own power, sometimes we need power from the grid," De Glee knows. "In Almere, we have installed a battery with a storage capacity of 1 MWh, sufficient for three full truck loads. This allows us to absorb and smooth out the peaks in power consumption."
Open to third parties
With smart monitoring, Lidl is able to predict its energy needs to the minute. When the charging plaza is free, the company makes its own generated green power available to third parties. "This way, we relieve the power grid and help other companies make transport more sustainable. Other retailers like Action now also come to charge with us. There may well be more of them," says De Glee. Whether that also contributes to the business case? "I cannot rule that out."
