Google has signed a major renewable energy deal with Energix Renewables. This partnership includes the development of 1.5GWp solar projects in the PJM market by 2030 with a possible extension.
The move is in accordance with Google’s policy of providing energy to its AI data centers through renewable sources of energy. The agreement requires Energix Renewables to provide electricity and Renewable Energy Certificates (RECs) from solar power facilities. The partnership also entails the signing of the first two Power Purchase Agreements (PPAs).
Google aims to power data centers with 24/7 carbon-free energy
Energix plans to increase its solar capacity installation to 1.5GW in the next 2-3 years. Strengthening its market share and creating room for market extension into other power markets. Energix’s collaboration with Google is in line with the company’s goal of reducing its overall emissions to zero by 2030 across its data centers and campuses worldwide. It also aims to cut its absolute greenhouse gas emissions for Scopes 1, 2, and 3 by 50% from the base year of 2019.
Amanda Peterson Corio, Google’s Global Head for Data Centre Energy, said that there is a need to work together on the decarbonization agenda. She highlighted that the collaboration with Energix is important for the further development of Google’s goal of using only carbon-free energy around the clock.
In the deal, Google will provide tax equity to Energix, which will help in the transfer of renewable energy credits under the Inflation Reduction Act of President Joe Biden. According to the act, the corporate entities are able to purchase these credits and hence foster the expansion of clean energy storage projects in the United States.
Morgan Stanley has acted as the sole financial advisor for Energix in this agreement. Their role was instrumental in setting up and sealing the partnership to make sure both companies achieved their strategic energy and sustainability objectives.
Google signs tax equity investment for Swift’s current solar project
In another deal, Google signed up for a tax equity investment with Swift Current Energy for its Double Black Diamond Solar project in southern Illinois. The project is an 800MW direct current (MWdc) solar farm that is planned to be the largest solar farm located to the east of the Mississippi River.
Eric Lammers, the CEO and co-founder of Swift Current, stressed that it is a new way to approach the creation of a product. He said he was eager to work with Google and that this may be a blueprint for other ventures.
