Renault has already hinted at building electric cars in Israel towards the end of the decade in a deal with Shai Agassi’s Project Better Place – an initiative designed to make electric vehicles a practical reality. However, according to new reports Renault will also build its own range of electric vehicles for sale in international markets.

Renault’s alliance partner Nissan is also working on an electric vehicle for sale in 2010 and it’s likely the two carmakers are sharing technology and investment to help speed up development and minimize risk. Like the new Nissan electric vehicle, which is expected to be based on the next-generation Cube minicar, Renault’s new model will also fill the sub-compact segment and will be targeted at customers in congested cities.

Speaking with AutoExpress, Renault’s director of product planning, Patrick Pelata, revealed the car could be launched in time for the 2012 London Olympics. He also hinted that it would be about the same size as the Twingo and could be available with two different batteries – a lighter unit for short distances and a larger one for weekend trips. Designers are also considering implementing a battery rental scheme to help absorb the costs of the powertrain.

Pictured above is the Renault Zoom, an all-electric concept with a 45kW electric motor unveiled back in 1992.