A California technology company seeking to establish a $1 billion statewide charging network for electric cars signed an agreement yesterday with Hawaiian Electric Co. to make such service possible as early as 2011.

The agreement, combined with a commitment by Gov. Linda Lingle to help the venture win regulatory approvals, significantly advances the plan announced in October by Palo Alto, Calif.-based Better Place.

"This is really, really ground-breaking," said William Parks, a deputy assistant secretary with the U.S. Department of Energy's Office of Electricity Delivery and Energy Reliability.

The system intends to draw and sell power from Hawai'i's growing industry of renewable energy providers and would help Hawai'i break its $7 billion-a-year addiction to fossil fuels.

Better Place so far has partnered with Nissan and Renault to provide electric cars for the mass market and is negotiating with all other major car makers. Nissan and Renault are expected to begin selling electric vehicles capable of traveling 100 miles on a single charge at a price equal to conventional cars in 2012.

Refueling the vehicles would happen at what Better Place envisions will be 50,000 to 100,000 charge outlets that resemble parking meters and can be placed at homes, shopping centers, workplaces and street parking spaces.

Instant refueling stations are also planned where fully charged batteries can be swapped with low batteries in three minutes while a driver waits in the car.

Better Place plans to sell a variety of charging plans from pay-as-you-charge to unlimited miles and said it is able to keep car costs competitive with conventional vehicles by owning the expensive batteries.

The company, according to founder and CEO Shai Agassi, regards Hawai'i is an ideal market because of its geographical containment and relatively short distances traveled by most motorists.

Another attraction was the state's potential for, and pursuit of, renewable energy production from sources such as wind, sun, waves and biofuel crops.

In January, Lingle signed a partnership with the U.S. Department of Energy for the Hawai'i Clean Energy Initiative that aims to satisfy 70 percent of the state's energy demands from renewable sources by 2030.

Lingle yesterday said the commitment, the boldest goal of any state, is attracting clean energy companies like windfarm developers, biofuel producers and Better Place.

"It's not just a number," she said. "We are going to achieve energy independence. The world has changed."

Better Place's stated goal is to help end the world's addiction to oil largely by providing electric cars that are fueled by renewable energy and affordable by average consumers.

The company may end up starting with charging stations fed by fossil fuel-based electricity if sufficient electricity generated by renewable sources isn't available in 2011.

But part of the memorandum of understanding signed between Better Place and HECO involves pursuing renewable energy.

In October, HECO and the state signed an agreement calling for the utility to buy about 400 megawatts — or about a third of O'ahu's electricity needs — from wind farms established or planned on Moloka'i and Lana'i. The power would be delivered via undersea cable, though costs could be an issue in realizing the plan.

Agassi said electric cars won't need a tremendous amount of electricity to run. He said it takes five to six kilowatt hours to power a typical daily commute in Hawai'i of 20 to 25 miles. "That's the laptop that you left on overnight," he said.

If every car in Hawai'i were powered by electricity, that would require only 6 percent to 8 percent of the state's electricity capacity.

HECO spokesman Peter Rosegg said the utility won't have to add generation capacity or rebuild the grid to accommodate Better Place. "That's what makes it so attractive," he said. "We're not going to need to rebuild the system."

One area of work will be ensuring that there's enough electricity capacity at times in areas where Better Place wants to establish battery swap stations that consumer large amounts of electricity.

A benefit to the electricity system is that most people presumably would charge their cars overnight when electricity usage is lowest. That's ideal for tapping wind power, which can produce too much energy at night that would otherwise go to waste.

Also, in the event of an emergency that disrupts power generation, electric cars could be plugged back into the grid to provide power.

"It's a win, win, win, win, win. The only loser is oil, and that's OK," said Robbie Alm, HECO executive vice president.

Hawai'i pays oil producers up to $7 billion annually, or more than 10 percent of the state's $62.5 billion gross domestic product, the highest share in the nation.

Agassi estimated that it will cost consumers the equivalent of $1.50 to $2 a gallon to run an electric car.

Yesterday, Better Place showed off its second prototype vehicle, an SUV crossover based on the 2008 Nissan Rogue and featuring a small electric motor.

The Hawai'i venture is the fifth such plan for Better Place, which was established last year backed by venture capitalists and in January announced its first plan that calls for 500,000 charging stations and 150 battery-exchange depots in Israel. A deal in Denmark was announced in March, followed by an October agreement for a network in Australia. Last month, Better Place announced a plan to develop an estimated $1 billion network in Northern California.