On Thursday, Google leapt forward into the energy industry in an effort to find reliable supplies of renewable energy for its power-hungry data centers. Google applied for approval from the Federal Energy Regulatory Commission (FERC) to become an electricity marketer, which would give Google the authority to buy and sell bulk power at market prices, just like utilities do.
Google applied through its Google Energy LLC subsidiary, which the company founded last month, recognizing the need to manage the risk of its considerable energy expenses and to have greater access to renewable energy sources to meet its environmental sustainability goals. If FERC approves its application, Google would join 1,500 companies in the United States that are defined as energy marketers. Most of those entities, however, are utilities or electricity generation facilities. Although it is unusual for a technology firm to opt for this energy procurement method, it is a sensible tactic for the company. According to Niki Fenwick, a Google spokeswoman, “We want to have the ability to procure renewable energy to offset power usage of our operations.” Google maintains that having more direct access to renewable energy sources will further its goal to become carbon neutral.
In 2007, Google announced that it intended to make its data centers and buildings carbon neutral, installing a 1.6 mW solar panel system on its headquarters building. As part of its RE<C program, which aims to find renewable energy sources that are cheaper than coal production, Google has invested $45 million in renewable energy start-up firms specializing in solar, wind and geothermal electricity generation.
Interestingly, Google does not publish its total energy consumption levels, nor how many data centers it operates and where they are located. The company asserts that such information could be used by its competitors to discover its energy procurement and management strategies. However, Rich Miller of Data Center Knowledge has been following the data center industry and has tracked Google’s facility locations. So far, he has identified about 24 Google data centers. Large data centers can use upwards of 30 to 50 megawatts of capacity each. Therefore, Google’s energy needs are probably comparable to the output of two power plants, hence the company’s determination to improve access to cleaner energy at more stable prices.
Stay tuned to find out if FERC will approve Google’s proposal to become an energy marketer. If such an important corporation can successfully purchase renewable energy to meet all of its energy needs and also jump-start the market for carbon-offsets, the renewable industry could quickly take off.
One Comment
Google certainly aren’t the 1st large company to become an nergy provider in order to reduce and stabilise their own energy expenditure. However other companies such as WalMart don’t have their fingers in half as many pies as Google has.