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Google invests in clean energy

Jérôme [PersonRank 10]

Monday, May 3, 2010
14 years ago2,218 views

<<On Friday we made our first direct investment in a utility-scale renewable energy project — two wind farms that generate 169.5 megawatts of power, enough to power more than 55,000 homes. These wind farms, developed by NextEra Energy Resources, harness power from one of the world’s richest wind resources in the North Dakota plains and use existing transmission capacity to deliver clean energy to the region, reducing the use of fossil fuels. Through this $38.8 million investment, we’re aiming to accelerate the deployment of renewable energy — in a way that makes good business sense, too.>>

http://feedproxy.google.com/~r/blogspot/MKuf/~3/5axceYZTK3o/not-merely-tilting-at-windmills.html

Jérôme [PersonRank 10]

14 years ago #

Earth2Tech has more:

<<Google’s philathropic arm Google.org has previously invested in clean power startups, including solar thermal companies eSolar and BrightSource, geothermal company AltaRock, and high-altitude wind company Makani. Google also has a side project to develop solar thermal receivers.

But this investment comes directly out of the Google Inc. treasury. Google spokesperson Jamie Yood told us “You can think of it as a way to diversify our cash holdings while investing in an area that we think is important to support. This investment will help further deployment of wind power, one of the lowest cost sources of renewable energy.” When I asked Yood if Google planned to use the clean power for its data centers, he said “This is more of a financial investment; not aimed at powering our data centers.”

Google has been making some unusual and aggressive moves into the energy world as of late. In February the U.S. Federal Energy Regulatory Commission (FERC) approved Google’s application to buy and sell electricity on federally regulated wholesale markets. Google also has its energy management software tool PowerMeter.>>

http://earth2tech.com/2010/05/03/google-makes-first-direct-investment-into-clean-power-project/

Earth2Tech watch very closely Google's first step in the energy business. I recommend to follow their coverage: http://earth2tech.com/tag/google (RSS feed available).

Roger Browne [PersonRank 10]

14 years ago #

If you have cash to invest, energy and commodities seem like two that will do well in the long-term. Google isn't involved in commodities, and it uses heaps of energy, so investing in energy seems natural.

But I can't help wondering if becoming an electricity wholesaler isn't about being able to get their own electricity more cheaply. Does anyone know if US energy wholesalers can supply themselves with electricity without going through a power company?

Jérôme [PersonRank 10]

14 years ago #

[put at-character here]Roger Browne:

I think Google's move in the energy business goes much deeper than the production of their own electricity (even though it may be a first step).

If they have a grand plan for the US http://knol.google.com/k/clean-energy-2030, they also have some ambitions for their business.

Take a look at this diagram from the GTM report (embedded below)
http://imgur.com/a9gzT.jpg

Soon, Google will cover every segment of the 'Consumer Energy Management Systems':
* bid/ask market data for energy markets (not yet, but they can http://bits.blogs.nytimes.com/2010/01/07/google-applies-to-become-power-marketer/ and they're very god at bidding http://adwords.google.com/)
* home/building Web-based portal (done! http://www.google.com/powermeter/about)
* end-user interface for PHEV smart charging & V2G (pilot testing http://www.google.org/recharge/overview.html)
* simple integration of distributed generation assets (cf. partnership with GE "enable large-scale deployment of renewable energy generation in the United States" http://googleblog.blogspot.com/2008/09/partnering-with-ge-on-clean-energy.html)
* point of consumption voltage readings (done! http://code.google.com/apis/powermeter)
* precise and adaptable control (soon: the API is read only for now but we can expect an Android 'EnergyBox': they're partnering with Intel and Sony for a TV and Intel is working on home energy control too http://download.intel.com/embedded/energy/323157.pdf)
* real-time customer access to meter data (done! PowerMeter)

Once they'll control the consumer energy systems, they'll behave on the grid the same way they behave on the Internet, challenging all the players in the communications layer in the infrastructure and utility segments.

Guess what? Google is already very familiar with those players: AT&T, Verizon, T-Mobile, CISCO, IBM, EMC, Sun... http://i.imgur.com/mrs9r.png

I think the motivation to invest in electricity generation is similar to their motivation to develop/sell mobile devices and start Google Fiber:
* prove the viability of their system *from end-to-end* (motivation #1)
* build and strengthen their ecosystem (Google/Android MarketPlace> PowerMeter API)
* innovate (html5 & native client > geothermal, solar, wind...)
* open markets and the technology (VP8, Android & Chrome > PowerMeter...)
* decrease costs for consumers (cheap computer/mobile > cheap energy)

--
GTM report on the smart grid (free, and very interesting)
https://docs.google.com/viewer?url=http://hardingeconometrics.wikispaces.com/file/view/GTM%2BResearch%2BTheSmartGridin2010.pdf

Jérôme [PersonRank 10]

14 years ago #

The embedding doesn't work, but you can dl the report here: hardingeconometrics.wikispaces.com/file/view/GTM+Research+TheSmartGridin2010.pdf

[url edited --RB]

Jérôme [PersonRank 10]

14 years ago #

More from Earth2Tech (interview with Rick Needham, Google’s green business operations manager):

http://earth2tech.com/2010/05/04/10-questions-for-google-on-its-wind-projects/

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