Google Makes 20 Year Wind Energy Deal

16 Years Ago Niki_Fears 0 630 Views

Google has been speaking about their commitment to be a cleaner, greener company since they announced their commitment to become a carbon neutral enterprise back in 2007. Now, they have made a new green energy deal that could help give wind power the boost that it needs not only to keep Google green but to help the US finally break its deadly fossil fuel addiction.

Google announced last week, that it has signed a 20 year deal with the alternative energy company NextEra Energy . The deal is being carried out by Google's energy division which was formed at the end of last year to allow the search giant to directly purchase energy from the wholesale market. They will purchase 114 megawatts of energy from NextEra Energy over the next 20 years. Google Energy will not use the wind energy directly but will instead sell it back to the main grid, increasing the amount of safe and clean energy on the market. The proceeds from that sale will then be used by Google to buy Renewable Energy Credits to help offset their own carbon footprint. They will begin purchasing from the wind farm on July 30th.

The energy that NextEra is providing to Google will come from a wind turbine farm in Iowa. This deal with Google will help to protect the future for wind energy and NextEra Energy and Google hope that it will give incentives to major energy buyers to buy from the renewable sources instead of more dangerous and polluting sources of energy such as coal and gas.

This wind energy deal is not the only investment that Google has made into the world of green energy. Other investments by the search mega giant has included an electric cars program known as RechargeIt and a multi-million dollar investment in geothermal technology which is aiming to harvest energy from deep beneath the earth's surface.

Of course, this move is not just about going green. With a long term deal in place now, Google has secured the energy it will need in the future even as demand for renewable energy increases and likewise, they have locked in a lower price now so if the energy costs rise over the next two decades, Google will still be paying the same low rate so the Next Era Energy deal is not only good for the environment but it is good for business as well.

Dani AI

Generated 10 Months Ago

Good short explainer and useful context from — the deal described above is a classic example of how large buyers drive renewable build without taking physical electrons on‑site. Corporations most often use long‑term power purchase agreements (PPAs) because they give developers predictable revenue (which helps projects get financed) and give buyers price stability against wholesale volatility. (epa.gov)

There are two common structures buyers choose: a physical PPA (where the buyer receives electricity, directly or via a utility) and a virtual/financial PPA (where the generator sells into the grid and the buyer settles the difference in price). Virtual PPAs are financial hedges and are widely used by companies with dispersed loads; they typically include transfer of energy attribute certificates (EACs/RECs), which are the contractual instrument used to back renewable claims. (rmi.org)

A few important accounting and claims points that clarify the thread discussion: to use a market‑based Scope 2 accounting method a company generally must have legal ownership of, and retire, the associated EACs/RECs; this is the basis for claiming the purchased electricity as renewable. Regulators and NGOs also caution that “additionality” (saying a purchase directly caused a new project) is nuanced — many experts recommend describing purchaser impact transparently rather than making simplistic causal claims. (ghgprotocol.org)

Practical checklist for readers thinking about similar deals: confirm the contract explicitly conveys and permits retirement of the project’s EACs; prefer contracts tied to new‑build projects if driving new capacity is the goal; consider on‑site generation or utility green tariffs where PPAs aren’t practical; and plan disclosure carefully so claims are verifiable and not misleading. As put it, “use only green energy” is a good headline — delivering it requires careful contractual and accounting work. (rmi.org)

dakshdirsub 0 Newbie Poster

15 Years Ago

Ya, do use only green energy

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