If you were asked to describe some of Google?s business operations, you?d probably place ?electricity supplier? pretty low on the list. But the search giant is nevertheless beginning to show all the hallmarks of an energy broker.
Just yesterday, the big G has announced plans to purchase the bulk of the power produced by a wind farm in Amarillo, Texas. While currently still in the planning and construction phases, the Happy Hereford Wind Farm?s capacity should sit right around 240 Megawatts (enough to power more than 150,000 homes). That?s still not a comparatively high output, but it?s perfect for Google.
The motive behind the purchase is ultimately for Google to offset its carbon footprint in its ongoing effort to be as green as possible. The goal here is similar to the way renewable energy credits work, but Google is taking out the middle man.
Google plans to put the electricity purchased from the wind farm into the wholesale market in Oklahoma, where the electricity market remains regulated (as opposed to the deregulated competitive market structure in Texas), and where one of Google?s larger high-consumption data centers is located.
Because businesses (including Google) and residents are required to receive power from their local utilities in Oklahoma, Google can?t directly sell the energy to its own data center ? even through its subsidiary, Google Energy. Still, the wind power that Google sells to the grid, the firm can offset its carbon footprint equivalent to that amount of green energy as though they were actually using it.
Happy Hereford Wind Farm certainly benefits from the deal as well, as they have effectively bypassed the typical obstacles faced by traditional utilities and power producers breaking into the market. The farm has essentially already ?booked? all of its power even before a single turbine has started spinning.
While Google insists it has no plans to jump into the electricity industry as a full-fledged utility any time soon, analysts wonder if these types of purchases ? should they continue ? could create an unforeseen turbulence on the market and force utilities to bid higher for power, especially green energy.
Google traditionally gravitates toward renewable energy resources and low-carbon solutions, typically paying higher premiums for the greener goods. The company also invests heavily in renewable energy interests, most notably a recent $168 million venture for the 370 Megawatt Ivanpah Solar Thermal power plant coming online soon in California.
Being trend-setters in the enterprise space, it?s not too far-fetched to recognize Google?s quasi-utility behavior to handle its own power consumption preferences. It will, however, prove interesting to see if any other big brands follow in their footsteps.
