The deal represents Google’s first PPA for wind power in the ERCOT market
Under the PPA, Google will offtake 150 MW from the Helena wind farm in Texas. The wind farm was commissioned in mid-2022 and is part of Orsted’s Helena energy center, which also includes the operational 250 MW Sparta solar farm. The procured power will be used to further decarbonize Google’s data centers and other infrastructure in the region, adding to ~1.9 GW of existing solar PPAs in ERCOT with developers such as SB Energy, Invenergy, and Candela Renewables. The deal marks the first PPA signed between Orsted and Google in the US and their second agreement globally, following a 50 MW offshore wind power contract for the 913 MW Borkum Riffgrund 3 in the German North Sea, signed in Nov’21.
Enerdatics data suggests in 2022, Google signed ~1.2 GW of renewable energy PPAs globally, bringing its total contracted capacity to 8.2 GW. The volume contracted last year represents an 80% y/y rise and includes some of the company’s largest agreements, such as a 942 MW PPA with SB Energy in the US, a 149 MW contract with ib vogt in Spain, and a 100 MW deal with ENGIE for the 882 MW Moray West offshore wind farm in the UK.
Google has been pursuing sustainability initiatives since the start of the century, announcing in 2007 that it had achieved carbon neutrality in its operations 2007. In 2021, the company announced five consecutive years of matching their annual electricity consumption with 100% renewable energy. By 2030, the company targets to run its operations entirely on carbon-free energy matched hourly, achieve net-zero emissions across its value chain and enable 5 GW of new renewable energy through investments in its key manufacturing regions. To support its ambitions, Google issued $5.75bn of sustainability bonds in 2020, becoming only the second major tech company in the US, after Apple, to do so. Google has committed $6bn of investments in wind and solar projects globally through 2040, to decarbonize its power consumption. Additionally, the company reported $3.3bn of renewables investments during the last decade that goes beyond purchases of clean power and is aimed at further decarbonization of its operational footprint.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.