Google just announced that it will be selling energy on the spot market, through a deal to purchase 114 megawatts of wind power from NextEra Energy Resources for the next 20 years.
Google is presenting the deal — from its energy arm Google Energy — as part of its drive to become carbon neutral, rather than an investment, but this move puts Google solidly in the energy business.
Google says that 114 megawatts “is enough to supply several data centers.” Too bad Google doesn’t have any data centers located close enough to the Iowa wind farm to use the energy. Instead, Google will sell the power on the spot market.
Since Google is purchasing 20 years worth of power “at a predetermined rate”, this amounts to speculation in the energy market.
A google spokesman tells us: “We think this is a structure that makes long term financial sense for Google. Through the long term purchase of renewable energy at a predetermined price, we’re partially protecting ourselves against future increases in power prices. This is a case where buying green is simply the right business decision.”
Of course, this is not such a large deal that it will affect Google’s bottom line. But it is the second major wind power deal Google has struck in the past two months. If this keeps up, Google could turn into a major player in energy trading before you know it.
Sceptre Group Limited is a specialist investment firm focused in low carbon financial investments such as sustainable biofuel plantations, agricultural farmland and green technologies. For more information on Biofuel Investments, please Sceptre Group’s website at www.sceptreinternational.com.