Google has announced an investment in six solar photovoltaic projects to its portfolio. The projects, located in California and Arizona, have a combined electric generating capacity of 106 megawatts. This deal illustrates the trend of renewable energy investments by data centers and other tech companies.
The projects are under development by Recurrent Energy. Five are located in Southern California, while the sixth is in Arizona. Google and investment firm KKR invested $400 million in the projects; Google's share is reportedly $80 million. The partners will sell the power produced by the facilities to local utilities including Southern California Edison.
Google announced that this represents its fourteenth investment in renewable energy since 2011. In 2010, the Federal Energy Regulatory Commission granted market-based rate authority to Google subsidiary Google Energy LLC, enabling it to sell power at wholesale. Google has since entered into long-term agreements to purchase power from wind farms and other renewable generators.
Other tech companies are pursuing similar strategies. Earlier this month Microsoft announced a deal to purchase energy produced by a Texas wind farm for its data center in San Antonio. In September, eBay received market-based rate authorization from the Federal Energy Regulatory Commission, allowing it to sell surplus power from its generators to the grid.
For consumers like Google with significant demand for power, developing on-site electric generation or entering into a long-term power purchase agreement can be cost-effective, either by reducing the cost of energy or by reducing its exposure to price volatility. Investments in renewable energy can also position companies for improved sustainability and "green" their public images. For these reasons, the trend of tech company investment in renewable energy infrastructure will likely continue for the foreseeable future.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label eBay. Show all posts
Showing posts with label eBay. Show all posts
Wind to power Microsoft's Texas data center
Tuesday, November 5, 2013
Microsoft has agreed to purchase energy produced by a Texas wind farm to power its data center in San Antonio. The announcement, posted on the official blog of Microsoft's Sustainability Development Team, describes a 20-year power purchase agreement with RES Americas under which Microsoft will purchase all of the output of the 110 megawatt Keechi Wind project located about 280 miles north.
The power purchase agreement fits with Microsoft's stated commitment to carbon neutrality. Since 2012, Microsoft has imposed an internal fee on the use of carbon-based forms of energy; Microsoft uses that fee to make investments in alternative or carbon-neutral energy, such as this power purchase agreement.
The Keechi project will be owned and operated by RES Americas, a subsidiary of British company RES Ltd. RES Americas currently operates over 600 MW of renewable energy projects, and has a renewable energy construction portfolio that exceeds 6,500 MW and 64 projects, as well as 534 miles of transmission lines. Its Keechi project is expected to cost $200 million, and will feature 55 turbines expected to produce 430,000 megawatt hours of energy per year. (To put this figure in context, it could power up to 45,000 homes, or cover between 5 and 10 percent of Microsoft's total electricity consumption.) Construction is expected to begin in 2014, with the project going operational by June 2015.
Microsoft is not alone in promoting its use of renewable or alternative energy to power its data centers. In 2012 Google entered into an agreement to purchase the output of a wind farm in Oklahoma to power its Pryor data center. Apple's new data center in Maiden, North Carolina is powered in part by a solar photovoltaic array and a biogas-fed fuel cell. eBay has proposed siting a 6 megawatt natural gas-fired fuel cell at its Utah data center. Whether the data center is powered by on-site distributed generation or buys power from a designated off-site renewable resource, the trend is toward promoting cleaner, greener computing through these arrangements. These choices may help the companies with cost control and power reliability as well as public relations.
Will large consumers of electricity continue to invest in alternative or renewable electric generation? If so, will they favor arms-length power purchase agreements with developers of remote projects, or will they rely more heavily on on-campus development of distributed generation? Will this trend spread beyond the big names so far - Microsoft, Apple, Google, and eBay - to the point where smaller or less tech-oriented companies develop or do similar projects and deals?
The power purchase agreement fits with Microsoft's stated commitment to carbon neutrality. Since 2012, Microsoft has imposed an internal fee on the use of carbon-based forms of energy; Microsoft uses that fee to make investments in alternative or carbon-neutral energy, such as this power purchase agreement.
The Keechi project will be owned and operated by RES Americas, a subsidiary of British company RES Ltd. RES Americas currently operates over 600 MW of renewable energy projects, and has a renewable energy construction portfolio that exceeds 6,500 MW and 64 projects, as well as 534 miles of transmission lines. Its Keechi project is expected to cost $200 million, and will feature 55 turbines expected to produce 430,000 megawatt hours of energy per year. (To put this figure in context, it could power up to 45,000 homes, or cover between 5 and 10 percent of Microsoft's total electricity consumption.) Construction is expected to begin in 2014, with the project going operational by June 2015.
Microsoft is not alone in promoting its use of renewable or alternative energy to power its data centers. In 2012 Google entered into an agreement to purchase the output of a wind farm in Oklahoma to power its Pryor data center. Apple's new data center in Maiden, North Carolina is powered in part by a solar photovoltaic array and a biogas-fed fuel cell. eBay has proposed siting a 6 megawatt natural gas-fired fuel cell at its Utah data center. Whether the data center is powered by on-site distributed generation or buys power from a designated off-site renewable resource, the trend is toward promoting cleaner, greener computing through these arrangements. These choices may help the companies with cost control and power reliability as well as public relations.
Will large consumers of electricity continue to invest in alternative or renewable electric generation? If so, will they favor arms-length power purchase agreements with developers of remote projects, or will they rely more heavily on on-campus development of distributed generation? Will this trend spread beyond the big names so far - Microsoft, Apple, Google, and eBay - to the point where smaller or less tech-oriented companies develop or do similar projects and deals?
Googa 20-year power purchase agreement (PPA) for wind energy in Texas that
will be funded in part by proceeds from Microsoft’s carbon fee - See
more at:
http://blogs.msdn.com/b/microsoft-green/archive/2013/11/04/microsoft-signing-long-term-deal-to-buy-wind-energy-in-texas.aspx#sthash.4l62oNbo.dpuf
a 20-year power purchase agreement (PPA) for wind energy in Texas that
will be funded in part by proceeds from Microsoft’s carbon fee - See
more at:
http://blogs.msdn.com/b/microsoft-green/archive/2013/11/04/microsoft-signing-long-term-deal-to-buy-wind-energy-in-texas.aspx#sthash.4l62oNbo.dpuf
a 20-year power purchase agreement (PPA) for wind energy in Texas that
will be funded in part by proceeds from Microsoft’s carbon fee - See
more at:
http://blogs.msdn.com/b/microsoft-green/archive/2013/11/04/microsoft-signing-long-term-deal-to-buy-wind-energy-in-texas.aspx#sthash.4l62oNbo.dpuf
eBay OKed for wholesale electricity sales
Friday, September 13, 2013
As customer-sited electric generation becomes increasingly economic, major companies outside the energy sector are entering electricity markets. Federal regulators this month granted eBay Inc.'s request for authorization to sell electricity at wholesale. What does this mean?
U.S. wholesale electricity markets are generally regulated by the Federal Energy Regulatory Commission. Most sellers in those markets are regulated as public utilities - but in recent years, the category of "utilities" has expanded beyond the traditional vertically-integrated utility serving retail customers with electricity. The growth in this sector has come largely from end-users of electricity who have developed on-site generation to meet their needs - and to sell excess power into wholesale markets. Recent big-name entries into the wholesale electricity market include Google Inc. and Wal-Mart Stores Inc. - and now eBay.
On September 5, 2013, the Commission granted eBay market-based rate authority. This approval enables eBay to sell electric energy, capacity, and other products. As described in the Commission's order, eBay plans to own and operate a 6 megawatt fuel cell generation facility located at its data center in South Jordan, Utah. In a June 21 filing, eBay described plans to install five natural gas-fueled "Bloom Box" units at the data center to provide power to run the facility.
eBay's plans bear some resemblance to the fuel cell system Apple developed at its data center in Maiden, North Carolina. Data centers consume significant amounts of energy, both for processing and for cooling. In many cases, on-site generation projects offer data centers a way to cut costs while improving their reliability and their environmental footprint.
Maximizing the cost-effectiveness of a distributed generation project requires it to be sized appropriately for the load to be served. In some applications, there may be little to no excess power available for sale at wholesale to the grid, while other on-site generation projects may be capable of exporting significant amounts of energy to the grid. With its market-based rate authorization in hand, eBay stands ready to enter the wholesale market with any excess power its Utah fuel cells produce.
U.S. wholesale electricity markets are generally regulated by the Federal Energy Regulatory Commission. Most sellers in those markets are regulated as public utilities - but in recent years, the category of "utilities" has expanded beyond the traditional vertically-integrated utility serving retail customers with electricity. The growth in this sector has come largely from end-users of electricity who have developed on-site generation to meet their needs - and to sell excess power into wholesale markets. Recent big-name entries into the wholesale electricity market include Google Inc. and Wal-Mart Stores Inc. - and now eBay.
On September 5, 2013, the Commission granted eBay market-based rate authority. This approval enables eBay to sell electric energy, capacity, and other products. As described in the Commission's order, eBay plans to own and operate a 6 megawatt fuel cell generation facility located at its data center in South Jordan, Utah. In a June 21 filing, eBay described plans to install five natural gas-fueled "Bloom Box" units at the data center to provide power to run the facility.
eBay's plans bear some resemblance to the fuel cell system Apple developed at its data center in Maiden, North Carolina. Data centers consume significant amounts of energy, both for processing and for cooling. In many cases, on-site generation projects offer data centers a way to cut costs while improving their reliability and their environmental footprint.
Maximizing the cost-effectiveness of a distributed generation project requires it to be sized appropriately for the load to be served. In some applications, there may be little to no excess power available for sale at wholesale to the grid, while other on-site generation projects may be capable of exporting significant amounts of energy to the grid. With its market-based rate authorization in hand, eBay stands ready to enter the wholesale market with any excess power its Utah fuel cells produce.
2/24/10: some news from Maine
Wednesday, February 24, 2010
Maine roundup for today
The announced closure of the Bumble Bee sardine cannery in Prospect Harbor continues to be troubling. 128 jobs to be lost. Governor Baldacci says the state will help find a new business, and could designate the cannery as a Pine Tree Zone, allowing the new owner to be exempt from 80% percent of its employee tax withholding for the next 10 years.
Tissue manufacturer Lincoln Paper and Tissue forecasts 2010 as a moderately successful period of no major investments or substantial new hiring. LP&T's CEO Keith Van Scotter has considered switching the fuel for its steam boilers from No. 2 heating oil to natural gas, but can't do so without help from state or federal government.
Landfill gas to energy: the City of Old Town, University of Maine, and Casella Waste Management have requested $3 million in federal stimulus funding to construct a 6-mile gas pipeline allowing gas from the Juniper Ridge Landfill (operated by Casella on behalf of the state) to flow to the steam plant at the university. Phase I consists of building the pipeline and upgrading the steam plant, and would significantly reduce carbon dioxide emissions. Phase II involves building an electricity generating facility connected to the landfill by a second pipeline. These plans are tied into the nascent Maine Green Energy Alliance, an entity owned by Casella that aims to generate electricity and sell it directly to participating municipalities like Old Town. Landfill gas remains somewhat contentious, with some opposing the project on environmental and fiscal policy grounds.
Maine does have experience with the Pine Tree Landfill in Hampden, also operated (and owned) by Casella. The $10 million Pine Tree Landfill gas project commenced operation in 2008, and is projected to produce enough methane gas to power up to 3,000 homes for 15 years or more. In 2009 a similar project was launched at the Crossroads Landfill in Norridgewock.
Bangor Daily News editorial yesterday lauding Eastern Maine Electric Cooperative (EMEC) for its customer-oriented culture and low prices, noting that the customer-owned utility cut power prices by 10% last year. The editorial is careful not to bash investor-owned utilities, but hints that their profit-to-shareholder motives may result in worse rates or service than customers can get from coops like EMEC.
Elsewhere:
Bloom boxes unveiled. Lots of buzz still, relatively few details. We have learned that commercial-scale units cost $700,000 to $800,000, and that five Bloom Energy Servers deployed by EBay last July produce electricity to power space for 2,000 to 3,000 employees and cut eBay's power bill by $100,000 so far. Interestingly, EBay uses natural gas as the fuel, but plans to convert to landfill gas soon.
Iberdrola anticipates profit growth over the next three years.
The Senate continues to wrestle with the carbon bill, with carbon pricing remaining as the sticking point. Cap and trade? Cap and dividend? Carrot and stick?
The announced closure of the Bumble Bee sardine cannery in Prospect Harbor continues to be troubling. 128 jobs to be lost. Governor Baldacci says the state will help find a new business, and could designate the cannery as a Pine Tree Zone, allowing the new owner to be exempt from 80% percent of its employee tax withholding for the next 10 years.
Tissue manufacturer Lincoln Paper and Tissue forecasts 2010 as a moderately successful period of no major investments or substantial new hiring. LP&T's CEO Keith Van Scotter has considered switching the fuel for its steam boilers from No. 2 heating oil to natural gas, but can't do so without help from state or federal government.
Landfill gas to energy: the City of Old Town, University of Maine, and Casella Waste Management have requested $3 million in federal stimulus funding to construct a 6-mile gas pipeline allowing gas from the Juniper Ridge Landfill (operated by Casella on behalf of the state) to flow to the steam plant at the university. Phase I consists of building the pipeline and upgrading the steam plant, and would significantly reduce carbon dioxide emissions. Phase II involves building an electricity generating facility connected to the landfill by a second pipeline. These plans are tied into the nascent Maine Green Energy Alliance, an entity owned by Casella that aims to generate electricity and sell it directly to participating municipalities like Old Town. Landfill gas remains somewhat contentious, with some opposing the project on environmental and fiscal policy grounds.
Maine does have experience with the Pine Tree Landfill in Hampden, also operated (and owned) by Casella. The $10 million Pine Tree Landfill gas project commenced operation in 2008, and is projected to produce enough methane gas to power up to 3,000 homes for 15 years or more. In 2009 a similar project was launched at the Crossroads Landfill in Norridgewock.
Bangor Daily News editorial yesterday lauding Eastern Maine Electric Cooperative (EMEC) for its customer-oriented culture and low prices, noting that the customer-owned utility cut power prices by 10% last year. The editorial is careful not to bash investor-owned utilities, but hints that their profit-to-shareholder motives may result in worse rates or service than customers can get from coops like EMEC.
Elsewhere:
Bloom boxes unveiled. Lots of buzz still, relatively few details. We have learned that commercial-scale units cost $700,000 to $800,000, and that five Bloom Energy Servers deployed by EBay last July produce electricity to power space for 2,000 to 3,000 employees and cut eBay's power bill by $100,000 so far. Interestingly, EBay uses natural gas as the fuel, but plans to convert to landfill gas soon.
Iberdrola anticipates profit growth over the next three years.
The Senate continues to wrestle with the carbon bill, with carbon pricing remaining as the sticking point. Cap and trade? Cap and dividend? Carrot and stick?
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