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They are guaranteeing for that producer their power is purchased at x$/whatever for 20 years. Massively lowers the risk profile for the wind farm, and lets them
by twohlix_ 9y ago
They are guaranteeing for that producer their power is purchased at x$/whatever for 20 years. Massively lowers the risk profile for the wind farm, and lets them focus on potentially expanding. Google is basically acting as a subsidizer of renewable energy here. So while yes they rely on the grid, they're a market force for increasing the percent of the power produced on the grid to be renewable.
Every MW produced by the renewable is a MW not needed to be produced by natural gas/coal
- CydeWeys 9y ago> Every MW produced by the renewable is a MW not needed to be produced by natural gas/coal This should be expressed in units of energy, not power, i.e. MWh.
- strictnein 9y agoI guess that makes more sense. It's more an act of corporate goodwill on their part, helping to build a certain level of renewable energy.
- tedsanders 9y agoPartly. But it's also an act of risk hedging. By locking in prices for 20 years, the buyer is insulated from rising prices and the generator is insulated from falling prices.