Google is reporting that it will purchase 114 MW of wind power from the NextEra Energy Resources Story County II wind farm located in Iowa on July 30 at a predetermined rate for 20 years. This deal is the first by Google Energy LLC, an entity formed last December to allow the company to procure large volumes of renewable energy by participating in the wholesale market.
“Buying renewable energy directly from the developer impacts the development of renewable energy projects in ways that are more meaningful than the purchase of Renewable Energy Certificates (RECs) from third parties. RECs allow energy consumers to identify and track power made from eligible sources of renewable energy. They have value and are typically bought and sold independently of the electricity from which they are generated,” stated a Google news release.
Google will resell the power back to the grid in the regional spot mark and will retire the RECs. “By obtaining RECs through the purchase of green power, our deal has a greater impact on the renewable industry than simply buying ‘naked’ RECs from third parties; our long-term commitment directly frees up capital for the developer to build more wind projects.”