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Google doesn't own these wind farms etc. They aren't investing in anything, and their shareholders aren't getting anything in return. They are paying a premiu

Google doesn't own these wind farms etc. They aren't investing in anything, and their shareholders aren't getting anything in return. They are paying a premium and hoping that the companies use the Google-provided profits/financing flexibility to advance the technology to the point where it will hopefully one day become economically viable. That day of course is not today, which is why I take issue with some of the statements in this article. Ultimately, Google is doing a service for the world if in fact these companies use Google's support as intended. There are probably more effective, direct routes for a company of Google's size though - they could easily just roll out their own renewable energy research division, and then shareholders would own the resulting technologies. The approach that they are using doesn't seem logical to me, and then trying to spin it as if they are doing shareholders a favor by overpaying for power seems like they are making a bad mistake even worse.

toomuchtodo 10y ago
> Google doesn't own these wind farms etc. Of course not. That'd be a pain in the ass. That's why they sign PPAs (power purchase agreements) that entitle them to the power from those generators (usually on 20-25 year contract terms). Think reserved instances at AWS. You're paying to commit to a resource usage. What does AWS do with that money? Buy hardware and provide the service to you. You simply make a payment. > They aren't investing in anything, and their shareholders aren't getting anything in return. I disagree with you, as do the facts.
- downandout 10y ago
  I disagree with you, as do the facts. Show me what they can put on a balance sheet in the end.
  - jartelt 10y ago
    There is value to signing a long term PPA that guarantees a set price of electricity for 10-20 years. For example, if Google powers a data center using wind power PPAs, they know exactly how much the electricity for the data center will cost over the life of those PPAs. If they power the data center with natural gas and coal-generated electricity bought through normal electricity markets, their electricity prices will change if the price of natural gas or coal change. Having more certainty into future operational costs is valuable because it allows you to make better informed decisions/investments. Plus, many wind power PPAs are being sold for less than the wholesale cost of electricity now, so they save that way too (recent PPAs signed in Texas are a great example).
    - downandout 10y ago
      There's negative value to them if those PPA's are overpriced relative to conventional power. This article seems to reluctantly admit that they are indeed overpaying in most markets most of the time. "We saved money that one time in Chile" isn't exactly a ringing endorsement of the economics of renewables at the present time.
      - toomuchtodo 10y ago
        Wind power is very cheap, even in the US. Several utilities in Texas offer free power during nighttime hours because of it. I assure you, these PPAs are not overpriced.

toomuchtodo 10y ago

> Google doesn't own these wind farms etc. Of course not. That'd be a pain in the ass. That's why they sign PPAs (power purchase agreements) that entitle them to the power from those generators (usually on 20-25 year contract terms). Think reserved instances at AWS. You're paying to commit to a resource usage. What does AWS do with that money? Buy hardware and provide the service to you. You simply make a payment. > They aren't investing in anything, and their shareholders aren't getting anything in return. I disagree with you, as do the facts.

downandout 10y ago
I disagree with you, as do the facts. Show me what they can put on a balance sheet in the end.
- jartelt 10y ago
  There is value to signing a long term PPA that guarantees a set price of electricity for 10-20 years. For example, if Google powers a data center using wind power PPAs, they know exactly how much the electricity for the data center will cost over the life of those PPAs. If they power the data center with natural gas and coal-generated electricity bought through normal electricity markets, their electricity prices will change if the price of natural gas or coal change. Having more certainty into future operational costs is valuable because it allows you to make better informed decisions/investments. Plus, many wind power PPAs are being sold for less than the wholesale cost of electricity now, so they save that way too (recent PPAs signed in Texas are a great example).
  - downandout 10y ago
    There's negative value to them if those PPA's are overpriced relative to conventional power. This article seems to reluctantly admit that they are indeed overpaying in most markets most of the time. "We saved money that one time in Chile" isn't exactly a ringing endorsement of the economics of renewables at the present time.
    - toomuchtodo 10y ago
      Wind power is very cheap, even in the US. Several utilities in Texas offer free power during nighttime hours because of it. I assure you, these PPAs are not overpriced.