The Ministry of National Infrastructures today announced that it convened an inter-ministerial meeting on a policy for electric cars. Participants included representatives from the Prime Minister's Office, the Ministry of Finance, Ministry of Justice, Ministry of Transport, and Public Utilities Authority (Electricity). No representatives from the Ministry of Environmental Protection or the Ministry of Interior came to the meeting.
The Ministry of National Infrastructures opposes the option of recharging electric cars at home and ordinary businesses electricity points connected to the national grid, as is already done overseas. The ministry only wants recharging via a managed grid.
Industry sources said that this measure to set a technology standard, if implemented, is liable to significantly slow the import of electric cars and will raise their cost.
The Ministry of National Infrastructures argues that managed recharging by an external party "will reduce the need to set up more electricity production facilities and expand the current national grid, while providing proper safety for using the grid to recharge vehicles. Controlled recharging is intended to enable control and oversight of electricity demand and of load on the electricity system's production, transport, and distribution."
The ministry's plan states that Israel Electric Corporation (IEC) (TASE: ELEC.B22) will build the recharging stations in public places, and that an party certified in electricity work at the relevant tension will build the stations in private locations. IEC will own and maintain the recharging stations in public places, and vehicle owners will own and maintain the recharging stations in private locations.
Part of the ministry's plan directly contradicts the business model of Better Place LLC, which wants to own and manage the home and public recharging stations, and to handle all the clearing of transactions.
The Ministry of National Infrastructures says that it intends to adhere to the principle of free access to a nationwide network of recharging stations with a range of operators and electric cars of various kinds. According to ministry figures, "a uniform standard for hooking up to the recharging system will be set, which will ensure the recharging by any electric car driver at any authorized recharging station, irrespective of the recharging vendor to which he is connected."
The ministry argues, "The standard that will be determined will enable fair competition in the electric vehicle market. An international standard will be considered as a basis, with the necessary adjustments to the policy principles set by the ministry."
Vehicle industry sources say that the Ministry of National Infrastructures' plan has technical contradictions. The sources note that no government ministry has the authority to set a standard, but can only adopt an existing standard. Currently, there is no uniform international standard for the recharging of electric vehicles, and no way to compel carmakers to apply any standard or to adapt their cars to the principles of a so-called managed grid in Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010