A new national industry lobby, the Electric Vehicle Council, has been formed to drive the uptake of electric cars in Australia.
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AGL chief executive Andy Vesey said more policy and market framework was needed to build the industry.
Mr Vesey said AGL customers could continuously recharge electric vehicles at home for a $1 per day.
"That's not sufficient," Mr Vesey said, adding AGL would aim to have electric vehicles comprising 10 per cent of its commercial fleet by next year.
The EVC's other members include car manufacturers and energy providers like ActewAGL, Tesla, NSW's TransGrid and Mitsubishi.
The group aimed to lobby nationally for an increase in electric cars, related infrastructure and fleet operators.
Federal Environment Minister Josh Frydenberg announced a $390,000 grant from the Australia Renewable Energy Agency for the EVC as the government aimed to increase electric vehicles uptake, reducing emissions.
"Here in Australia, we could be going better than we are," Mr Frydenberg said.
In 2014, electric vehicle sales accounted for 0.1 per cent of new cars sold in Australia with fewer than 5000 electric cars on the road today.
"Some 10 per cent of Australia's emissions come from light vehicles," Mr Frydenberg said.
A 2016 report from ClimateWorks Australia said electric vehicles could help transport sector emissions drop by up to 47 per cent.
EVC chair and ClimateWorks implementation head Scott Ferraro said electric vehicles recharged using renewable energy created zero emissions.
"International experience has shown that government policy is a key driver to enable uptake," Mr Ferraro said.
The EVC hoped to work with the government on policies, including creating sales incentives for consumers.
Urban infrastructure minister Paul Fletcher said the transport sector was undergoing an extraordinary transition and disruption.
"One of the things for that has to happen for that transformation to take effect is that purchasers, consumers and users need to make decisions to buy vehicles embodying new technology," Mr Fletcher
Mitsubishi chief executive Mutsuhito Oshikiri said electric vehicles were important to protect the environment.
"We expect demand for electric vehicles to increase over the coming years," Mr Oshikiri said.
