Better Place: So Who Pays for These Charging Stations and Where Will They Go?

Amid the whirlwind global tour of Better Place CEO Shai Agassi, there’s a question that doesn’t get as much attention as you think it might. Namely, who is going to pay for these electric charging stations the company wants to erect in Australia, Canada, the U.S. Israel and Denmark? (Apologies for anyone I left out.)

The plan to bring them to the Bay Area, for instance, could cost $1 billion.

The answer is private equity.

“Better Place is working with Macquarie Capital as a trusted financial adviser with recognized infrastructure expertise. Macquarie already is a Better Place partner in Australia and they are committed to helping raise private funds to support the plan to build charging network infrastructure in Ontario,” wrote a spokeswoman.

How well this will work in the current environment remains to be seen. Credit is tight. The plug-in car market will also likely evolve slowly—it will take several years to convert even a portion of the stock of existing cars into electrics—so return on investment could be slow.

On the other hand, plug-in cars sound like they will become a reality. Thus, if you’re going to put money into something for the long term, charging stations are less wacky than many other options.

One can imagine the company seeking out public funds. Who isn’t after all?

The company is also considering installing charging stations at filling stations. It makes sense: They already exist. Customers could drop their car off and go off to work. At the end of the day, they could pick it up, along with a a 64-ounce Diet Coke, a couple of tree air fresheners and some pepperoni Slim Jims. Nothing like a little Christmas shopping at the gas station.

Interestingly, readers have pointed out that in Hawaii, most of the electricity is produced from diesel generators. Thus, the electric charging stations erected there will really function more like gas stations.