RACV backs Better Place Australia

Better Place Australia has assumed the early-bird position in preparation for the moment governments start looking for EV charging networks. And it's paying off -- to date it's netted the company $25m here without having yet turned a sod of Australian soil.

The Royal Automobile Club of Victoria (RACV) is the latest in a growing string of local investors in the Australian arm of Better Place, the company spearheading the nation's as yet nonexistent EV charging infrastructure sector. RACV has pitched $2 million into Better Place's local coffers, joining Lend Lease's seed capital arm, ACT energy utility ActewAGL and a number of smaller private investors to push the company's initial funding to around $25 million. Better Place's global equity financing now resides up around the US$350 million mark.

In a press release describing the move as a "forward-looking partnership", RACV's general manager of public policy, Brian Negus, called it "a demonstration of RACV's commitment to sustainable transport technologies", which, the release continues, "could include charge spot installations at RACV properties, joint marketing initiatives, roadside assistance services as well as insurance cover."

Better Place describes itself as "the leading provider of electric vehicle services and infrastructure", without actually offering those services in this country, as mentioned. There's no arguing with its entrepreneurial and intellectual firepower and political connections. It cut short the promising political career of dotcom entrepreneur and progressive activist Evan Thornley with the offer of the CEO's chair, and it boasts former Boston Consulting whiz Ben Keneally -- husband of NSW premier Kristina Keneally -- as head of marketing and external affairs.

But -- and here's perhaps the most compelling evidence of its entrepreneurial prowess -- its industry leadership comes by default, with no visible competitors yet in sight for the business, and no one offering much of a clue as to where that competition might come from.

Nor does anyone appear to know -- or want others to know -- much about where the money's going. Asked about why RACV chose Better Place and the existence of identifiable competitors in Australia, Brian Negus described the investment as "…a financial demonstration of our commitment to exploring and creating sustainable transport options and building sound environmental policy for our organisation."

The same lack of whats, wheres and actuals was in evidence at Nissan's recent media introductory workshop in Sydney for its Leaf EV (pictured). NSW Energy Minister John Robertson and Sydney Lord Mayor were on hand for speeches and photo opportunities. Asked if the NSW government has yet put anything out to tender, the minister said no, it's too early.

"We've applied for federal funding for what's called a 'smart grid smart city' project. If we're successful there, the plan is to roll out -- in cohorts with the Sydney and Newcastle City Councils -- 20 trial EVs, for which we'll set up a network of charging posts."

For prospective competitors to Better Place, he suggests look to private parking operators and local government authorities. "I'd envisage the parking operators will twig to this and set up allocated spots with charging stations. And public parking meters will evolve so you put your credit card in and pay to power up while you park. Councils will put that out as part of their tender requirements."

For now, though, Better Place is it. "At this stage they're certainly best positioned to take this. They've decided to grab first mover's advantage in the marketplace," says Robertson.

Asked if he had any suggestions on where competing enterprises and business models might emerge from, RACV's Negus simply answered "No".

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