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Google Applies To Become Energy Marketer
necro81 writes "Google consumes massive amounts of electrical energy to power its data centers across the country and world. Now it has created a subsidiary, Google Energy LLC, and applied (pdf) to the Federal Energy Regulatory Commission to become a utility-scale energy trader. Google's stated aim is to be able to purchase renewable energy directly from producers at bulk rates, pursuing its goal of becoming carbon neutral. It is likely that Google Energy would also permit Google's own renewable energy projects to sell their energy at more favorable rates. Google reportedly does not have plans to actively become an energy broker, a la Enron."
Google also didn't have plans to make an operating system, a phone, a phone os, an instant messenger, a usenet application or a social network.
So yeah, this isn't Genron. Really.
StoneCypher is Full of BS
Google's stated aim is to be able to purchase renewable energy directly from producers at bulk rates, pursuing its goal of becoming carbon neutral.
Some quick observations about Iowa. Back in 2008, we covered Microsoft and Google opening up half billion dollar server farms in this state because energy was supposedly cheaper there and tax incentives. Now, if you look at the year end totals for Iowa's wind power capacity in MW you'll notice that through 2008 it jumped higher than any other year going from 1,273 to 2,791. It more than doubled. At the end of 2009 it was at 2,862 -- perhaps a result of the recession -- but also indicative of what's going on in the state. Put two and two together and I think it's obvious that wind power companies were looking to work with Google and were maybe even encouraged by Google.
You know, I was really glad to see this sort of thing happen. It was something that Google could spend money doing that would boost shareholder value while at the same time incentivizing companies to invest billions in wind power in Iowa with a lengthy ten year or more plan to gain that money back before they start to turn serious profits. If Google gets these wind power plants up and running, ten years from now we the consumers might be enjoying a price war between wind power fields generating electricity on equipment that has been paid for and now just needs maintenance fees. Think about it, a whole infrastructure springing up on Google's promises and investor's dimes being slowly amortized back up to very profitable and freaking awesome for ma and pa corn grower. The economy would go nuts if you could alleviate energy costs for everyone. In addition to the slow and welcomed change, the industries that will be negatively affected (coal, gas, etc) by these price wars will have the time to realize and change or better yet invest in their own wind farms. If this model is proven successful, tornado alley could in fifty years become the new middle east and we'll be fighting wind wars over South Dakota and Kansas.
Now, back to the story, this vertical integration strategy is awesome for the company but I don't like it for two reasons. 1) In my opinion it is a step down the path to a weak version of a monopoly and competition deterrent 2) If Google influences these companies too much or worse buys them out, we might never see a price war I mentioned above. These are distant fears and after the Ma Bell and Microsoft monopolies/anti-trusts/Sherman Act prosecutions, I trust the DoJ won't sit idly by if point one or two become uncomfortable truths.
Google reportedly does not have plans to actively become an energy broker, a la Enron.
That kind of reassures me.
Overly optimistic? Of course. A little unrealistic? Well, a man can dream, can't he? A man can dream.
My work here is dung.
Citation, please? Their shareholder prospectus says 97% of their revenue is from AdWords.
Why do you believe otherwise?
StoneCypher is Full of BS