A shift in excavation – the road towards electrified construction transport

A research project funded by the Swedish energy agency shows that a large share of traditional heavy vehicle transports could be electrified today – with the help of new business models.

Electrification of road transport is progressing rapidly in some areas, but not all. One particularly challenging segment is excavation transport procured on the open market, where trucks move to and from construction sites without fixed routes or long-term planning. Until now, this segment has lacked both structure and incentives for transition – but new insights show that electrification is indeed feasible.

In the project Towards the realisation of strategic electrification nodes for mass transport in Stockholm county, Ecoloop, together with stakeholders such as Foria, Scania, Vattenfall, Ellevio, Peab, and Skanska, analysed how electrification could be made possible in this context. The results show that up to 86 percent of transports could be electrified – but this requires a shift in conditions.

“To succeed, we need a systemic shift – not just new electric vehicles. Today, the responsibility often falls on individual hauliers, who lack both the resources and the incentives to invest in electrification,” says Kristina Lundberg, project manager at Ecoloop.

A fragmented system slows progress

A key insight from the project is that the current distribution of responsibility and complexity in the value chain is hindering electrification. Transports are procured through several layers – from clients, via contractors and transport hubs, down to hauliers and individual drivers. Often, it is the latter – the sole trader with a single truck – who is expected to make the climate investment.

“It’s not realistic to expect these small operators to purchase vehicles that are twice as expensive and have lower payload capacity. Instead, responsibility and incentives must be moved higher up the value chain,” says Kristina Lundberg.

Another challenge is that electric vehicles often have slightly lower payload capacity. This may require more trips to complete the same task, affecting both cost-efficiency and planning. In a segment where margins are already tight, this quickly becomes a critical business issue.

The project also shows that current procurement requirements are insufficient to drive the transition. Today, biodiesel is often enough to meet climate criteria, which means electric vehicles are not competing on equal terms.

The way forward

The project highlights that while the technology exists, electrification requires broader systemic change. Five key factors must align for electrification to succeed in practice:

  1. Investment in electric vehicles and infrastructure
    Electric trucks are at least twice as expensive as diesel ones and carry less. Investment responsibility must be shifted higher up the value chain.
  2. Revised procurement requirements
    Current tenders often accept biodiesel to meet climate goals, making it hard for electric vehicles to compete. Procurement must steer technology choices and target actors with investment capacity.
  3. New business models
    The additional cost of electrification is approximately SEK 400–700 per vehicle per day in total cost of ownership. New models are needed to distribute costs and benefits – such as bonuses per kWh, longer contracts, or revised pricing structures.
  4. Longer planning horizons and better coordination
    Many transports are currently booked at short notice. Electrification requires time for charging, coordination, route optimisation, and new principles for transport management.
  5. Collaboration across the value chain
    From clients and contractors to hauliers and drivers – no single actor can drive the transition alone. Shared responsibility and common goals are essential.

From analysis to demonstration

The current project is nearing completion, but the next step is already being planned: to apply for funding for a system demonstrator. The goal is to have electric excavation transport in practical operation in the Stockholm area by 2026 – testing vehicles, charging infrastructure, procurement models, and business models in collaboration. The demonstrator will be a crucial step in turning theory into practice and showing how the transition can become reality in a complex industry.

About the Sustainable transport systems programme

The Swedish energy agency’s research programme Sustainable transport systems began in 2023 and runs until 2029, with a total budget of SEK 305 million. The aim is to accelerate the transition to a fossil-free, transport-efficient, and resource-efficient transport system.

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