3 ms·
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 po
by 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 agoThere'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 agoWind 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.