General Electric

According to the press release, “GE  and Better Place, a leading electric vehicle (EV) services provider, today announced a technology and financing partnership to accelerate the global deployment of electric vehicle infrastructure through collaboration in four key areas: standards-based technology development, battery financing, joint fleet electrification programs and consumer awareness.

The partnership combines GE’s global scale, broad technology portfolio, smart grid expertise, and its new WattStation™ electric vehicle charger with Better Place’s EV services and infrastructure solution to create scalable solutions that power electric vehicles for nearly all consumers and fleet owners.

“GE values the power of collaboration and this partnership with Better Place is about large and small companies aggregating their strengths to advance electric vehicle infrastructure deployment,” said Beth Comstock, GE senior vice president and chief marketing officer. “By integrating our WattStation with this service solution, we can help digital energy transform our roadways and provide a cleaner, more sustainable transportation alternative.”

“Almost three years ago, Better Place identified the transformation from oil to electricity as the last massive ‘digitization’ of energy, and a significant economic opportunity globally,” said Shai Agassi, Founder and CEO, Better Place. “Our collaboration with GE is another significant step forward for Better Place as we seek to assemble a formidable ecosystem of industry leaders including Renault, HSBC and now GE that can help us scale our model globally. Our team of partners is committed to accelerating the acceptance of electric cars as more affordable and more convenient than our gasoline heritage.”

The partnership includes collaboration in four areas:
1. Standards-based technology: GE’s WattStation™ will be compatible with the Better Place network. Under the Better Place model, the ownership of the car and battery is separated, allowing EV drivers to avoid the heavy up-front cost of the battery and instead pay for miles and a more convenient, cleaner solution for personal transport. This partnership will allow consumers that manage charging costs under Better Place’s network to easily charge their vehicles using GE’s WattStation. Establishing charging uniformity for electric vehicle drivers, guarantees drivers can “roam” from one charge point to another under one seamless transaction for faster charging and a more convenient experience.

2. Battery Financing: GE and Better Place will develop a battery financing program that begins with a pilot project to finance 10,000 batteries in Israel and Denmark, which are the first two markets for Better Place. This financing will further drive the early EV market in those countries, helping to bring the first 10,000 electric cars to consumers there.

3. Fleet Electrification: GE and Better Place are collaborating to target fleet owners for pilot projects to test a comprehensive fleet electrification offering model in major city centers and connecting highways. The goal is to convert corporate fleet owners to electric fleets, so owners reap both the economic benefits of lower cost of ownership as well as reducing harmful carbon emissions.

Target pilot locations include cities in North America, including the San Francisco Bay Area, Honolulu, Hawaii, and Ontario, Canada, as well as cities in Europe, Asia and Australia. Better Place is already working towards initial network deployments in these markets, beginning in 2011.

4. Consumer Awareness: Better Place and GE, as part of its ecomagination initiative, will focus on raising consumer awareness to understand the economic and environmental value of widespread adoption of electric transport and the infrastructure that is needed so make that level of adoption a reality.

PHEVs, according to CalCars, combine the strengths of both types, the long distance capability of gas and the cost-efficiency of a green, electric motor. By charging the vehicle overnight in the garage most daily commute is sufficiently covered by the battery which translates to about $0.75/gallon of gasoline. By comparison, regular hybrids today achieve 45 mpg at about $1.20/gallon.

Besides the daily costs of owning a PHEV many consumers are still weary of the hefty price tag on PHEVs versus an old-school automobile. While most PHEVs admittedly cost thousands more than even the hybrids on the market today, the cost to own a car is an entirely different matter. By essentially cutting the cost of fuel for a PHEV by 2/3 the money saved will reach well into the thousands.

If an average car owner drives 12,000 miles a year and gets roughly 25mpg and spends about $3/gallon for gas, then $1440 is spent on gas alone per year. If we use the high estimate of the cost for electricity to power the car, the savings will be roughly $1000/year. After five years, an PHEV would effectively negate the added cost. For simplicity sake the cost for battery replacement should at least be offset by lower maintenance since PHEVs have significantly less moving parts. Although it should be noted that battery technology is a rapidly growing industry which would lower its costs immensely in the coming years.

Finances aside, the environmental implications are obviously far-reaching which CalCars stresses the most. In a extensive study by the Electric Power Research Institute and the Natural Resources Defense Council (EPRI-NRDC) conducted in July 2007, the organization confirms that PHEVs will be cleaner as they get older because the grid it utilizes is itself becoming cleaner.

The EPRI-NRDC also emphasizes that this shift away from our dependency on oil can happen right now since we have the technology to build it and the infrastructure to support it. Although the future will undoubtedly bring greener, more affordable technology PHEVs are going largely unnoticed despite their potential impact on the environment. By investing in PHEVs today we would be investing in the future of our planet because we should be giving back to that which has already given us so much.