Australian Electric Company, AGL, Will Charge Your EV For A$1/Day, And That Includes Your Tesla

JUN 24 2016 BY MARK HOVIS 18

Newly Designed Model S

Now you can charge this Model S for a $1 a day

It seems that AGL’s CEO, Andy Vesey, is throwing down the gauntlet  to add to the current flattening of the traditional electricity supply business as more Australian homes add solar generation to the sun-rich country.

The new initiative was announced at the Australia Energy Week Conference in Melbourne,  reports the Australian Financial Review.  Vesey proposed that it will cost a customer A$365 a year to juice up their electric vehicle at home regardless of the make or manufacturer.

This is a reasonable deal for  20kWh+ EVs like the Nissan LEAF, but for a 90kWh battery like those found in many Tesla Model S, just wow!

Vesey’s A$1 a day plan was presented as follows at the conference: “For a dollar a day if you have an electric vehicle and you have an  AGL smart meter and a charger you can get energy for that car for A$1 a day, as much as you like.”

CEO Andy Vesey Tweeted news of the deal, which will be available from November.

We see this as brilliant marketing and a reasonable deal even for the modest driver.

Hat tip to SparkEV!

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18 Comments on "Australian Electric Company, AGL, Will Charge Your EV For A$1/Day, And That Includes Your Tesla"

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“We see this as brilliant marketing and a reasonable deal even for the modest driver.”

Looks more like another for-profit EV-charging company doomed to enter bankruptcy in short order to me, if there’s no limit on kWh for that A$1/day.

I also don’t see any restriction on time-of-use, so yeah, this is a bankruptcy missile.

Not from cheap solar farm electricity.

“I also don’t see any restriction on time-of-use….”

Details to be revealed later. He did say you need a smart meter, obviously it will be signaled to stop charging during peaks.

Higher demand, flattened peaks, dispatchable load are all big wins for a utility. Selling kWhs at 9-10 cents* each works if they gain all those benefits.

*3650-4000 annual kWh is 12-15k miles.

AGL is an energy company with over 4 million customers, about 11 Gigawatts of electricity generation capacity, and are a S&P ASX 200 component. They are not a “EV-charging company doomed to enter bankruptcy in short order”.

I am wondering what their business model is though. $1 of electricity is only about 4 kWh in Australia, enough to go about 20 km in an EV. What’s the business model and how do they expect to make money?

We’ll see, agl aren’t known for their generosity. it’ll be good to see the deal. What will be really good is if some of the other retailers get involved growth or rather lack of it is the big problem at the moment for every supplier on the grid hopefully this is a bit of a light bulb moment for the industry.

100% agree. For an ‘ordinary’ EV just about maybe (assuming you have no home or work charging ability – and how likely is that?) but for a Tesla owner? Don’t think so!

Yet another bait and switch. Free electricity for everybody*.

*Extra conditions will apply next month: if you use more than 10 kWh per year, it is considered grave abuse and you will be terminated and you car confiscated.

Great to see AGL getting into this, the gentailers in Australia have the most to gain from ev adoption. This is a great way to highlight how cheap ev’s are to run.

It’s a promotion. With only 1% evs they may lose a little but they get it all back in publicity. Plus you still have to pay for the other electricity you use.

That’s 1 AUD correct, not USD? So 75 cents (US).

I think it is expensive. Let us take the Model S 60d kWh. Bjoern Nyland in Norway was able to drive it and consume 175 watts per km. So this car can travel about 340 km. So we can say that the car will travel 170 km and back again in 5 to 6 hours. The poor driver will have to rest after that. So most of the day is gone in the driving alone. Now let us see how long will it take to charge this 60 kWh at home for AUS $1? It doesn’t say! We will assume 3 hours. So you see it is not reasonable to assume that you will do that 365 times a year. So the balance will be tilted once we use say a Nissan Leaf or BM i3. It will be more impractical. As for the electricity used per year in Australia it is about 11,000 kWh per year. Divide that by 365 days you will get roughly 30 kWh for every day. More than the 20 kWh mentioned. And how much will you pay for that extra 10 kWh every day? Well we don’t know. So the bottom line is that… Read more »

> This is a reasonable deal for 20kWh+ EVs like the Nissan LEAF, but for a 90kWh battery like those found in many Tesla Model S, just wow!

What a terrible assessment. This is a case where it’s the *average* driving per day that matters – not the range/capacity. It is not likely to be that much greater for a Model S than a Leaf, and although the former is less efficient it’s not SO bad as to make it a totally different kind of deal!

Right.

And surprising that others posting comments here didn’t see the obvious fallacy.

Ding ding ding! We have a winner! I was waiting to see when someone would figure it out.

Yes, that’s absolutely correct. Most people drive about 40 miles a day, at least in US. At very wasteful 3 mi/kWh, that’s 13 kWh and much less for efficient EV (too bad no SparkEV there). That’s $0.075/kWh. Considering some EV rates in US is $0.10/kWh ($1.30/day), $1/day not whole lot less.

AGL benefits from the publicity, EV driver benefit from slightly lower rate, it’s win-win for everyone.

Off peak rate in Australia is about 0.1 c/kWh so you get an average of around 10 kWh per day for $1. This usage is about what I average but this is green power which is more expensive than my dirty power, appears not to be restricted to time of day and is unlimited. All of that may mean some people win pretty big with this deal. For me personally in Melbourne, I did 20,000km last year and paid around $270 but all of that charging was off peak. There is a pretty massive range of power prices and literally thousands of tariffs.

This will work out as a good deal for some but is not earth shatteringly amazing. The most important thing is to highlight that the average Aussie will save around $2000 a year on petrol.

Good point – most kWhs supplied under this program will be overnight so $1/day is consistent with current tariffs. This is more convenient for users, who can forget about TOU (the required smart meter will reduce or stop current flow during peaks).

This is great marketing. Making things easy and predictable for the customer drives EV acceptance, a source of revenue growth for AGL. And they desperately need sources of revenue growth — finances get really ugly when revenues decline at a fixed asset company.

The other thing to keep in mind from the power generation perspective is that in Australia power is sold on a market where the price of power is set by the highest bidder. Every generator puts in a bid for what they are willing to sell their power for in advance. the grid then lists all the bids by price and uses the cheapest first. There is almost always more power than required so the higher you bid the more likely you will loose out. The thing that makes the market so effective is that everyone is paid the same price which is set by the highest price the grid has to pay to meet demand. the base load power generators zero bid – offer their power for free as do the wind generators. There isn’t enough zero bidders so that power is free but with demand dropping things are getting tighter especially on windy evenings or sunny days. Domestic generators (pv) are not part of the market and just get a fixed low price so domestic pv essentially shows in the market as a drop in demand. All the above means is a small change in demand either way… Read more »