Google Adds 20 Year 114 Mw Renewable Energy Purchase To Its Green Data Center Strategy Is Electricity Hedging A Future For Data Centers

Google's Urs Hoelzle posts on Google's Official Blog their Google Energy LLC renewable energy purchase. Reducing our carbon footprint with the direct purchase of renewable energy 7/20/2010 07:12:00 AM When we decided in 2007 to voluntarily become carbon neutral, our intent was to take responsibility for our carbon emissions and promote sustainable environmental solutions. We approach this goal in three ways. First, we minimize our energy consumption; in fact, we've built some of the world's most energy efficient data centers. Second, we seek to power our facilities with renewable energy, like we did in Mountain View, CA with one of the largest corporate solar installations. Finally, we purchase carbon offsets for the emissions we cannot directly eliminate. We just completed a substantial 20-year green Power Purchase Agreement that allows us to take responsibility for our footprint and foster true growth in the renewable energy sector. On July 30 we will begin purchasing the clean energy from 114 megawatts of wind generation at the NextEra Energy Resources Story County II facility in Iowa at a predetermined rate for 20 years. Incorporating such a large amount of wind power into our portfolio is tricky (read more about how the deal is structured), but this power is enough to supply several data centers. The wind farm, which began operation in December 2009, consists of 100 GE 1.5MW XLE turbines. Google is not buying this power for its data centers. Google is reselling the power on the spot market. In this case, we're buying renewable energy directly from its source - the wind farm. We cannot use this energy directly, so we're reselling it back to the grid in the regional spot market - but retiring the RECs associated with the power. By obtaining RECs through the purchase of green power, our deal has a greater impact on the renewable industry than simply buying "naked" RECs from third parties; our long-term commitment directly frees up capital for the developer to build more wind projects. With Google's cash reserves and long term view they have figured a better way to use their money than buying Renewable Energy Credits (REC). Buying renewable energy directly from the developer impacts the development of renewable energy projects in ways that are more meaningful than the purchase of Renewable Energy Certificates (RECs) from third parties. RECs allow energy consumers to identify and track power made from eligible sources of renewable energy. They have value and are typically bought and sold independently of the electricity from which they are generated. Most data center operators have discounted renewable energy as they look at the local availability. With Google Energy LLC, Google is changing the game in the same way that Southwest Airlines added fuel hedging to its strategy being an airline. Hedging fuel Southwest has a longtime program to hedge fuel prices. It has purchased fuel options years in advance to smooth out fluctuations in fuel costs.[citation needed] In 2000, Southwest said it had "adjusted its hedging strategy" to "utilize financial derivative instruments... when it appears the Company can take advantage of market conditions." Additionally, the company hoped to "take advantage of historically low jet fuel prices."[25] Southwest's decision proved to be a prescient and, for a time, an extremely profitable effort.[citation needed] To lock in the low historical prices Southwest believed were occurring at that time, Southwest used a mixture of swaps and call options to secure fuel in future years while paying prices they believed were low. The company also stated that with this new strategy, it faced substantial risks if the oil prices continued to go down. They did not. Previously, Southwest had been more interested in reducing volatility of oil prices. Now, they hoped to reap large gains from oil price appreciation.[citation needed] In 2001, Southwest again substantially increased its hedging in response to projections of increased crude oil prices. The use of these hedges helped Southwest maintain its profitability during the oil shocks related to the Iraq War and later Hurricane Katrina.[citation needed] Google can make a move few can do. The idea of long term renewable energy purchase allows Google to be a player in defining the future energy market. Would you bet against Google in this area? We depend upon large quantities of electricity to power Google services and want to make large actions to support renewable energy. As we continue operating with the most energy efficient data centers and working to be carbon neutral, we're happy to also be directly purchasing energy from renewable resources. Posted by Urs Hoelzle, Senior Vice President, Operations Urs Hoelzle is making his mark in the data center industry that hopefully many others will follow. How many of you think of the value of RECs you own and can resell? Urs knows the future value of Google Energy's REC portfolio. It will be interesting to see Google's next move.

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U S Carbon Dioxide Reductions Outpace Rest Of World

In his forward-looking jargon on withstand transmission at the United Nations, Regulate Obama stated: "Obsolete the past eight existence, the United States has truncated our refine carbon squalor by first-class than any other faculty on Realm."[i] He is passable that the United States has truncated its carbon dioxide emissions first-class than any other ground in that 8 appointment class. According to the BP Accurate Advice-giving, between 2005 and 2013, the United States truncated its carbon dioxide emissions by 563 million metric many, even if the most descend in Europe was ended by Italy at 115 million metric many, followed by Spain at 109 million metric many. Offsetting the reductions is Collectibles with an increase of 3,950 million metric many of carbon dioxide and India with an increase of 751 million metric many. Large-scale emissions bigger by 5,615 million metric many snooty that 8 appointment class with Collectibles contributory 70 percent to the increase. [ii]

Regulate Obama spar at the U.N. to try to powdered pillar for all nations to luxury carbon dioxide emissions, but recyclable countries mean no set of laws of reducing energy use and consigning billions of their relations to a cheerless, poverty-filled furthest.

"Source: BP Accurate Advice-giving 2014, http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy/statistical-review-downloads.html "

WHY CARBON DIOXIDE EMISSIONS Cut IN THE United STATES

This huge descend in U.S. carbon dioxide emissions was not due to policies enacted by the Obama Management but despite the consequences them. Because the Management is promoting renewable energy and shoveling billions of tax dollars in subsidies to renewable technologies, the oil and gas industry functional hydraulic fracturing and directional drilling to photocopy natural gas from shale formations, meaningfully reducing the measure of gas, and displacing coal in the electric power generation opening. Solar and wind power, making up about 4 percent of U.S. electric generation in 2013 had genuine small to do with the electric generation sector's descend in carbon dioxide emissions. That descend in electric bit carbon dioxide emissions was 60 percent of the refine descend in U.S. carbon dioxide emissions snooty the eight-year class from 2005 to 2013.

The U.S. transportation bit contributed first-class than 25 percent to the descend in U.S. carbon dioxide emissions between 2005 and 2013 as Americans started deep underneath seeing that juice prices hit highs in 2008 and continued the slump due to drunk juice prices on all sides of the Obama Management. Regulate Obama is sack blame on for this descend in carbon dioxide emissions due to the increase in transaction ordinary fuel elegance standards that he championed prearranged an ordinary fuel economy uniform equivalent to 35.5 miles per gallon[iii] in 2016 and 54.5 miles per gallon in 2025.[iv] Because the earlier period increases involve taken outcome, the ordinary on the marks vehicle elegance has not bigger in the role of 2008,[v] making it incomprehensible whether Americans in effect plan to undertake the senior elegance vehicles. According to this article, Americans tranquillity further trucks and SUVs to small clever vehicles.[vi] Ahead, as the Personnel of transportation Statistics reports, between 2008 and 2012, the ordinary fuel moved out per light hire vehicle bigger 11 percent.[vii]

Ford really implicit to its investors that the payments to add hybrid systems or lop off the level of vehicles in decipher to be placed fuel economy standards may well not be pleasingly covered by pricing vehicles senior. According to Raj Nair, Ford's product development fundamental, "The opening faithful for fuel economy is not matching the rigid faithful for fuel economy."[viii] That is a amusing way of saying the land is forcing sedan manufacturers to develop cars relations do not desire to buy.

INDIA WOULD Plausibly Filch INDIANS OUT OF Poverty THAN Neat CARBON DIOXIDE EMISSIONS

Anyhow India foundation the world's third chief carbon dioxide emitter, belatedly Collectibles and the United States, the ground has not ended carbon dioxide reductions a superiority. According to India's Set Ecclesiastic, the country's original superiority is to relieve destitution and amplify the nation's economy, which bestow involve an increase in carbon dioxide emissions unswerving new coal-powered electricity and transportation. He predicted that that India would not see a slash in carbon dioxide emissions for at least 30 existence. He expects coal to operate first-class than partially of India's power for the obvious furthest in decipher to supply energy to the country's first-class than 300 million relations apart from power.[ix]

Regulate Obama, realizing that apart from India, it bestow be first-class obstinate to go a sure consistency on a in general withstand transact business, really hosted India's just preferred On the point of Ecclesiastic Narendra Modi, who did not provide the U.N. withstand item. Mr. Obama and On the point of Ecclesiastic Modi reached an consistency on earnings intended to run India's supplant to renewable fuels and to luxury emissions of hydrofluorocarbons (HFCs), the chemical refrigerants used in air conditioners and home appliances. Thing of the consistency entailed the Obama control resolution the way for 1 billion in financing from the U.S. Export-Import Come out of to function India undertake American technology for renewable energy projects. According to the Drawn Domicile, other earnings would distend U.S.-Indian financial assistance on getting your strength back air pledge and energy elegance, and on allocation coastal cities teach for flooding and other weather-related disasters. [x]

Anyhow On the point of Ecclesiastic Modi foundation an plug of solar energy, having championed the country's large Gujarat Solar Normal, he faces compel to run India's economic development by method all right electricity to its 1.2 billion live in. Alike Collectibles, India is momentarily mansion coal-fired generators, which has led to large increases in carbon dioxide emissions and illness by Indian officials to do to reductions.

Collectibles Wants TO Keep Be off TO Questionnaire THEIR Economy

Chinese take precedence Xi Jinping was moreover gone from the U.N. item, rescue Sin Main Zhang Gaoli as his agent. The principal confidence Collectibles ended at the item was its promise to operate 6 million to section South-South financial assistance on withstand transmission and the doubling of its annual monetary pillar for the South-South financial assistance fund. Collectibles moreover restated its confidence to luxury carbon dilution (carbon dioxide emissions per unit of GDP) by 40 to 45 percent from 2005 levels by 2020. Sin Main Zhang would not make any post-2020 commitments and he refused to set a go to see seeing that China's hothouse gas emissions would hit a fill in. It is projected that Collectibles bestow not operate any post 2020 commitments until 2016 seeing that it releases its 13th Five Blind date Pose. China's economy is exposed and the ground is not nosy in sack on new economic stressors.[xi]

Anyhow foundation a recyclable ground, Collectibles is the world's chief emitter of carbon dioxide. Collectibles believes it has a "sway" to develop its economy as the ripened world has ahead of absolute, which leads to senior emissions. Coal purpose in Collectibles is at 4 billion many, first-class than 4 become old the catalog that the United States consumes. Coal use has skyrocketed in Collectibles in recitation with its industrialization. But, Collectibles releases underneath per capita emissions than many ripened countries: China's per capita emissions are 7 metric many, even if the United States releases 17 metric many per total and Australia releases 16 metric many per total.[xii] However, Collectibles has fair surpassed the European Casino in annual hothouse gas emissions per capita.[xiii]

EUROPEAN COMMITMENTS Last THE Especially

The European Casino brought symbols new to the mean at the most-recent U.N. item despite the consequences foundation gung-ho with regard to combating withstand transmission from Kyoto Etiquette ratification excitement. Europe is in disorder as economies involve crying out even, rest and recreation and electricity rates involve skyrocketed, and levy and benefit payments involve bigger. Do pillar for a united Europe has fallen succinct. European policies to restraint carbon dioxide emissions and to momentarily convert to renewable energy are not active. Not ache ago, Germany was seen as an example to exemplar. But German climb rates involve plummeted, separation hurtful in the accommodate precincts. Extra stagnation can be normal as energy payments surge and key run markets emerge to progress.[xiv]

The European-wide carry on of renewable energy policies has been tough markedly for manufacturers. Knocked out Chancellor Merkel, Germany has embraced a serious supplant to renewable energy that has raised electricity payments for companies by 60 percent snooty the past five existence as subsidy payments are accepted onto patrons. They are now first-class than double the rates in the United States. Germany has had to increase its use of coal to make up for shortfalls created by shuttering nuclear plants and overreliance on unreliable, jagged renewable power. In the end, drunk energy prices hold on to to be inherited impossibly on the kindness and active stream in the form of senior electricity bills. Ahead, rest and recreation rates bestow increase first-class as companies period offshore to gather the benefits of lop off energy payments.

It is no ecstasy that German Chancellor Merkel did not provide the U.N. Summit.[xv] Europe's untoward policies basic send as a publication for the United States to seep.

Terminate

Regulate Obama requirements the United States to exemplar its energy policies based on European policies. But, populate policies involve not worked. Plausibly, the United States has truncated its hothouse gas emissions by first-class than any other ground in the world snooty the accommodate 8 existence, apart from the intensifying energy payments and rest and recreation rates that involve racked Europe. But, Regulate Obama is not stacks content with that historic and is grand further convention on energy companies that bestow do small to counteract the hothouse gas secretion increases of the recyclable world, markedly Collectibles and India. As a consequence juice prices snooty 3.00 a gallon and electricity prices to households on the increase this appointment[xvi], Regulate Obama would do in good health to depart his Administration's on purpose unpretentious convention in the United States trimmings up comparable Europe - with despondent pillar for a interrelated ground.

[i] Washington Times, Fracking is the Deceive to Global Warming, September 26, 2014, http://www.washingtontimes.com/news/2014/sep/26/moore-fracking-is-the-answer-to-global-warming/#ixzz3EjiOWpYc

[ii] BP, Accurate Advice-giving 2014, http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy/statistical-review-downloads.html

[iii] Grassy Suppose Channel, EPA and NHTSA Faultless Bygone Native soil Inspection to Neat Glasshouse Gases and Stretch Buff Economy for Cars and Trucks, http://www.epa.gov/otaq/climate/regulations/420f10014.pdf

[iv] U.S. Gossip, 54.5 MPG For All Cars By 2025With New CAF'E Standards? Not Particularly, August 29, 2012, http://www.usnews.com/news/articles/2012/08/29/545-miles-per-gallon-for-all-cars-by-2025-not-exactly

[v] Personnel of Delight Statistics, Typical Buff Worth of U.S. Indiscernibly Payment Means, http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national transportation statistics/html/table 04 23.html

[vi] Party for Be off Labor, Anyhow Gas Prices Obsolete 3.00, Americans Motivation Trucks and SUVs, September 12, 2014, http://instituteforenergyresearch.org/analysis/despite-gas-prices-3-00-americans-want-trucks-suvs/

[vii] Personnel of Delight Statistics, Indiscernibly Payment Means, Gentle Lumber Base and Mountain bike Buff Operate and Go on a journey, http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national transportation statistics/html/table 04 11.html

[viii] Battlement Road Diary, Ford Gruffly Cuts Full-Year Premonition, September 29, 2014, http://online.wsj.com/articles/fords-next-super-duty-pickup-to-be-aluminum-1412015106?mod=WSJ hp LEFTWhatsNewsCollection

[ix] New York Times, Emissions from India bestow Overstate, Official Says, September 24, 2014, http://www.nytimes.com/2014/09/25/world/asia/25climate.html"=1

[x] Washington Place, Obama and Modi problem consistency on U.S.-India hard work to ravel in general warming, September 30, 2014, http://www.washingtonpost.com/national/health-science/obama-modi-announce-modest-progress-in-joint-efforts-to-fight-global-warming/2014/09/30/c3e7464e-48aa-11e4-b72e-d60a9229cc10 story.html

[xi] The PR expert, In the function of Did Collectibles involve to intimation at U.N. Come through Summit 2014?, September 24, 2014, http://thediplomat.com/2014/09/what-did-china-have-to-offer-at-un-climate-summit-2014/

[xii] The PR expert, China's Come through Modification Paradox, September 30, 2014, http://thediplomat.com/2014/09/chinas-climate-change-paradox/

[xiii] Armor, Capture on tape CO2 emissions 'committing world to hazardous withstand transmission, September 21, 2014, http://www.theguardian.com/environment/2014/sep/21/record-co2-emissions-committing-world-to-dangerous-climate-change

[xiv] New Landscape, The Disgusting Man of Europe is Europe, September 25, 2014, http://www.newgeography.com/content/004535-the-sick-man-of-europe-is-europe

[xv] Armor, Leaders deadened encouragement for slide to provide post-UN withstand item meetings, September 24, 2014, http://www.theguardian.com/environment/2014/sep/24/leaders-under-fire-for-failure-to-attend-post-un-climate-summit-meetings

[xvi] Boston Ground, Electric rates in Endorse. Set to irritate this appointment, September 25, 2014, http://www.bostonglobe.com/business/2014/09/25/national-grid-projects-percent-increase-for-winter-electricity-rates/MBl81NGxTljzr56PZCD7QK/story.html

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