Written by: Aaron Katsman | February 24, 2009
Project Better Place continues to build momentum, as the maker of electric cars, has signed up 19 Israeli companies to test the suitability of running their car fleets with electric cars.
According to Globes: “The participating companies cover the gamut of Israeli industry, from high tech to telecommunications, pharmaceuticals, finance, manufacturing, agriculture, and juice. They include Israel Corporation (TASE: ILCO), which has invested heavily in the venture, Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), Pelephone Communications Ltd., Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), Matrix IT Ltd. (TASE:MTRX), Direct Insurance - Financial Investments Ltd. (TASE: DIFI), Rafael Advanced Defense Systems Ltd., Netafim Ltd., Keter Plastics Ltd., Orbotech Ltd. (Nasdaq: ORBK), juice maker Jafora Tabori Ltd., Manpower Israel Ltd., SQlink Ltd., Nike Israel Ltd., and Glasshouse Technologies Ltd. Better Place will begin designing the recharging points for the companies’ electric cars and install them at the companies’ parking lots and employees’ homes. It will also work with the companies’ managers and employees in the design and deployment of the infrastructure in order to optimize and customize them to the needs of each company.
Even if it works, the question still remains whether consumers are going to spend more money on an electric car? Also without massive government subsidies, how high will the price of these cars go?
Written by: Aaron Katsman | January 14, 2009
Alert reader DG sent this to me. It may be 14 years old, but it applies now more than ever.
Written by: Aaron Katsman | December 5, 2008
This post has been submitted by I’m Right You’re Wrong:
The Israeli Ministry of Finance should be applauded for sticking to its guns and wanting an energy policy that generates revenues and not dishes out subsidies.
It’s not that I have anything against alternative energies, after all I support the ultimate alternative energy, Nuclear power. It’s just that if these technologies are so wonderful why do they cost more and demand government subsidies to get them up and running? If they were so good couldn’t the private sector fund these projects entirely and make all the profits? Oh profits, you mean there aren’t any?
According to the report in Globes, the Ministry of National Infrastructures director general Hezi Kugler spoke at a conference and said: “The Ministry of Finance wants us to stop and assess the economic gain that alternative energies are likely to generate. Surveys in other places show that the public is willing to pay 20-30% more for alternative energy. We can supply energy from the resource that we have here (the sun) and increase our energy security. These are the right considerations. Unfortunately, the Ministry of Finance is doing everything it can to stop this going before the cabinet because they know there won’t be a single minister who will vote against it.”
Clearly the Finance Ministry is unreasonable in wanting to ‘assess the economic gain that alternative energies are likely to generate.’ Mr. Kugler, give me a break. First of all, you tell me who would be happy to pay an extra 20-30% for their energy? I wouldn’t be happy to part with that money, and I don’t know many others who would be doing cartwheels to pay a lot more either. Second, do you actually have the nerve to see it as being unreasonable that the Ministry of Finance wants to see if there will be any actual economic benefit from this whole project?
The Finance Ministry deserves a lot of credit on this issue in protecting the Israeli taxpayer from being burned by the alternative energy hype.
Please see our Disclaimer HERE.
Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
