The Danish/American company Better Place Denmark is at the forefront of capturing a new market. The Danish utility company DONG Energy has created a new company together with the American company Better Place in order to create a new market for battery-powered electrical cars in Denmark. Faced with an economic and environmental challenge, DONG Energy has found a profitable solution that responds both to resolving their surplus energy production as well as an alternative entry into the transportation business – the sale of electricity to battery-powered cars. For this new market to become established, Better Place Denmark will have to provide the needed infrastructure for electrical cars.

20% of Denmark’s electricity is provided by windmills. However, electricity produced by windmills is rather unreliable since it is not possible to predict when the wind will blow, and since electricity produced cannot be stored. In the case of the windmills, electricity is also produced at night, when electricity consumption is low, resulting in wasted electricity.

By using a battery-powered electrical car which needs to be charged during the night, the surplus electricity created by windmills can be put to use. However, this requires a new infrastructure of charging stations to be put in place, as well as the development of electrical cars and powerful batteries. The first step in developing the large infrastructure is expected to be in place by 2011, while electrical cars powered by batteries already exist and are ready to be rolled out on the Danish roads.

Better Place Denmark’s vision is that 20% of the total Danish car fleet (400.000) will consist of electrically-driven vehicles by 2020. Better Place Denmark has the potential to contribute to the environment by replacing petrol-driven cars with zero emission cars.

Source: Social Action.

For more details on this case, contact FORA at FORA@newnatureofinnovation.org.