Power Purchase Agreement (PPA) is a legal agreement between two parties, typically a power producer and a buyer. The PPA outlines the terms and conditions of the sale of electricity from the power producer to the buyer. One of the biggest buyers of renewable energy is Google, which has made a significant investment in clean energy and has set a goal to operate on 100% renewable energy by 2025. In this article, we will explore the topic of Power Purchase Agreement with a specific focus on Google.
Google has been actively investing in renewable energy for over a decade. The company has signed 52 PPA agreements to purchase over 7 GW of renewable energy, making it the largest corporate purchaser of renewable energy in the world. These PPAs have provided a stable source of income for renewable energy producers, which has helped to accelerate the development of new renewable energy projects.
Google`s first PPA was signed in 2010 with a wind farm in Iowa. Since then, the company has signed agreements with wind and solar projects across the United States and in several other countries. In 2019 alone, Google signed agreements to purchase 1.6 GW of renewable energy, which is enough to power over 1 million homes.
Google`s approach to PPA is unique, as the company does not typically own or operate renewable energy projects. Instead, it signs long-term agreements to purchase a predetermined amount of energy from a renewable energy producer. This approach allows Google to focus on its core business while still contributing to the growth of renewable energy.
PPAs are an essential tool for promoting the development of renewable energy. By providing a stable revenue stream, PPAs help renewable energy producers secure financing for their projects. PPAs also allow companies like Google to meet their sustainability goals while reducing their carbon footprint.
In conclusion, Power Purchase Agreements are a vital part of the renewable energy landscape and have played a significant role in Google`s journey towards 100% renewable energy. With more companies setting ambitious sustainability goals, we can expect to see more PPAs in the future. As the largest corporate purchaser of renewable energy in the world, Google is leading by example and helping to drive the transition to a clean energy future.