The energy transition in construction is in full swing. Electric machines and new regulations are driving a fundamental change in how projects are executed. In this transition, it is important that contractors invest in electric machinery. One question is central: what does an electric machine cost (what is the total cost of ownership, or TCO), and how can a contractor earn this back?

More nuanced than expected

During the TCO Masterclass by Connectr, it became clear that the answer is more nuanced than often assumed. The main challenge is not the technology, but the way in which we deploy and organise it.

The masterclass was delivered by Gerard van der Veer (Connectr), André de Swart (Cumela), and Niek van Onna (Connectr). From their different perspectives, a comparison was made between electric and diesel equipment. This also included looking at different generations of electric machines and how they compare in terms of cost and performance.

From purchase price to system thinking

Where traditionally the focus was on the purchase price, attention is now shifting to the bigger picture. Emission-free construction requires system thinking: not only the machine matters, but especially the energy supply, logistics, and deployment.

The total fleet as a starting point

An important insight is that emission-free equipment is almost always part of a mixed equipment fleet. Different generations of machines together influence the average rate. Anyone who wants to build a realistic business case must therefore look at the total fleet rather than a single individual machine. Which machines do you invest in first? And what role is there for rental?

To make this concrete, various TCO calculations were carried out using a 16-ton mobile hydraulic excavator as an example, making the differences between electric and diesel equipment clear.

Energy: three cost components

Energy also plays a central role. Every energy solution on a project can be broken down into three cost components: fixed costs, consumption costs, and logistical costs. Applying this structure provides insight into the actual kWh price and allows solutions to be compared more effectively.

Organisation as a key factor

It also became clear that emission-free construction is primarily an organisational challenge. Planning, collaboration, and utilisation rate largely determine success.

There are also many policy developments. The Clean and Emission-Free Construction (SEB) covenant ensures that emission-free working is increasingly being requested. This leads to a higher utilisation rate of electric machines, a crucial factor within TCO, and makes electric equipment increasingly a strategic choice rather than purely a financial consideration.

Core message: organise it well

The core message of the masterclass was clear: carefully consider the variables within your TCO calculation. Electric construction is not necessarily more expensive, but it will become so if it is not properly organised and incorrect assumptions are made when determining a machine’s production rate.

Follow-up masterclass in the pipeline

During this edition, 15 companies participated, highlighting the relevance of the topic. Due to this interest, a follow-up masterclass is being considered. Keep an eye on Connectr’s channels for future editions.