GHG Emissions, Industrial, Sourcing Renewables  -  June 13, 2024

Google Partners for Clean Transition Tariff

Google entered into a partnership to harness its electricity demand and deploy clean energy.

The tech company launched a first-of-its-kind clean energy partnership with NV Energy, a subsidiary of Berkshire Hathaway Energy, that enables Google and other energy users to meet growing power demand cleanly and reliably, according to an announcement. 

The core of the partnership is a new clean transition rate that is also referred to as a “Clean Transition Tariff” (CTT) that can be replicated in many electricity markets.

The proposed structure is currently pending review and approval by the Public Utilities Commission of Nevada and will help Google move towards its ambitious goal to operate its data centers and office campuses on 24/7 carbon-free energy (CFE) by 2030.

Power purchase agreements (PPAs) with project developers — a model that Google pioneered — are not sufficient in fully decarbonizing electricity systems.

The CTT will create a new, scalable pathway for utilities and large energy users to invest in clean firm capacity and accelerate the commercial deployment of advanced, clean technologies. It brings utilities and customers together into a long-term energy agreement that can facilitate investments into new projects that deliver clean firm capacity to the grid. This allows customers to meet their growing electricity demand with 24/7 CFE through their existing utility relationship and share in the long-term benefits that these projects provide, like increasing the share of clean and reliable power.

NV Energy is the first utility to operationalize this new approach through a first-of-its-kind energy supply agreement with Google. NV Energy  worked with developer Fervo Energy to include 115 MW of new, enhanced geothermal power in the CTT partnership and deliver its full capacity value to Google. 

Duke Energy has already announced agreements with Google and others to develop a CTT in the Southeast United States.

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