Transport Success Story:
Better Place
Electric vehicles charged like mobile phones
Better Place is delivering the package of products and services needed to operate an electric vehicle infrastructure. Working in Israel and Denmark, Better Place is using the cars of the future now to tackle one of the biggest climate change challenges head on.
Better Place at a glance
| Project inception: | End 2007 |
|---|---|
| Proposed launch date of system at scale: | End 2009 |
| Project investment: | US$200 million venture capital |
| Current coverage: | Israel and Denmark |
The challenge
Maintaining car culture minus the emissions
How do you ask millions of people to change the habit of 100 years, without providing a viable alternative? Conventional cars run on carbon intensive fossil fuels and the ubiquitous internal combustion engine has driven society for a century – but it has come at a price, an increasingly costly price. Imagine an initiative designed to shape an entirely new infrastructure, in which the cars and the fuels are cheaper, cleaner and just as accessible – enter Better Place.
The solution
Flexible infrastructure to charge and run electric vehicles
Better Place allows people to see cars as a commodity, much like mobile phones. Carmakers provide vehicles capable of plugging into a network of charging stations. Energy companies deliver the power and subsequently increase the amount of renewable energy reaching the grid. And Better Place is responsible for the lithium ion batteries that can be swapped when empty – making electric cars a real alternative to conventional vehicles.
Unique concept
Better Place founder Shai Agassi has developed a business model that takes from the mobile telecoms industry and combines transportation with renewable energy generation to revolutionise the way we drive. This innovative system needs three things to operate - charging spots, battery switching stations, and software. Drivers pay to access the network of charging spots and battery exchanges which are powered by renewable energy, and they only pay for the miles they drive.
Complete system
With a single charge vehicles can travel 100mi and recharge at a rate of roughly one minute, per minute of drive. Charging spots, located in central residential, work and public parking areas, keep the batteries topped up so that they always have 100 miles of driving capacity. For trips longer than 100 miles (161km), roadside automated battery switching stations replace empty batteries for full ones, without anyone having to leave the vehicle. The process takes less time than filling a tank and the driver’s subscription sees to the rest.
Because most vehicles would charge at night while at home, the batteries can also become distributed storage for clean electricity.
Working at scale
In its first six months, the initiative secured cooperative agreements with Israel and Denmark.
In January 2008, Israel announced its partnership with Better Place and Renault-Nissan. Israel is an ideal early adopter of the Better Place model - geographically small, with a flourishing solar power market and all major urban centres less than 150km apart. 90% of car owners drive less than 70km per day and high taxes incentivise the purchase of zero-emission vehicles.
In March 2008, Danish Oil and Natural Gas (DONG) Energy signed an agreement with Better Place and Renault-Nissan. Denmark’s size and gasoline taxes make it ideal for Better Place’s system too. Due to its relatively advanced wind infrastructure, DONG Energy will be able to store the excess power generated by its turbines in the electric recharge grid, allowing the cars access to a reliable source of renewable power.
Widespread appeal
25 more countries are speaking with Better Place. Due to its open, neutral approach to the development of batteries, there will be many manufacturers contributing to the pool of available batteries. This will maintain a steady supply and stable prices as more and more nations join.
Roll-out
The first vehicle prototype emerged in Tel Aviv in January 2008. Better Place and Renault-Nissan plan to have hundreds of test cars, thousands of charge spots and several swap stations ready by late 2009. By the end of 2010, pre-production cars will be in circulation and more than 100,000 charge spots and dozens of swap stations in place. And by the end of 2011, electric cars will be in mass production with more than 500,000 charge spots and more than 100 swap stations.
The result
Ultimately, Better Place will reduce greenhouse gas emissions by 40% through the conversion to electric cars alone and as more renewable energy comes on line to charge the vehicles, this figure will be even higher. And the more countries that convert and the more businesses that become involved, Better Place will have a key role to play in delivering the low carbon economy.
Lessons Learned
• Comprehensive engagement between national governments and diverse businesses is possible and can contribute to delivering the low carbon economy.
• By being technology- and product- neutral. it ensures that Better Place can be flexible and keep pace with system developments. By focusing on delivering one specific solution, Better Place can develop a model which is scalable from its existing pilot scheme and can be rolled out and replicated in a host of different locations.
