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.
Pollution typically declines during a recession. Not this time.
The USA’s East Coast could shiver under a blanket of unusual cold this winter, according to forecasters. The impact of this forecast is already being seen in the pricing of Natural Gas and Electricity futures as they’ve doubled from the August lows.
We have a lot of conversations with our clients and prospective clients about the electricity and natural gas markets. Most of those conversations revolve around taking either a “fixed price, variable (indexed) price or a combination of the two (block and index) 3rd party supply contract”. The other part of the conversation usually revolves around “how long of a term” and “when should we do this”. What NuEnergen does best in our energy sourcing group is to have the necessary conversations with Sr. Management around risk management and budget. We find that most of the time by doing a deep dive with the right group of people around these two issues, coupled with our in depth analysis of where the market is heading, we’re able to best recommend the strategy that is right for you. Our process involves many moving parts, but the most important part of that process typically lies with our clients, their short and long term financial goals and their risk tolerance. So the next time someone gives a recommendation on purchasing energy in a deregulated market, ask the question - why?
Ontario’s power grid is getting a $2.3 billion makeover as part of an ambitious, three-year effort to create 20,000 jobs and bring more green electricity to homes and businesses across the province.
This September 10th, John Carmichael (Director of Client Services) was named Honorary Tailhooker of the Year at the 2009 Tailhook Annual Reunion and Symposium in Reno, Nevada. John has been writing a 
