How Google Could Become Your New Energy Supplier

Google is to invest in companies developing clean-energy technologies as part of an effort to make renewable energy cheaper than coal. The internet giant is to develop software and hardware tools for energy management and plans to sell a percentage of the generated energy back to the grid for Renewable Energy Certificates. In other words, Google may one day be supplying your energy.

The initiative, termed RE < C ("renewable energy less than coal"), will see Google next year invest millions of dollars in research and development in renewable energy. The project is fronted by Google's Energy Access team, led by Arun Majumdar, vice president of Google's energy unit and former acting undersecretary of energy at the U.S. Department of Energy.

Investments will be focused on solar-thermal technology, wind power, and geothermal systems. Google has already entered into a 20-year green Power Purchase Agreement with wind and solar energy company NextEra and is working with solar-thermal company eSolar.

As Google’s centres consume large amounts of electricity, they are likely to use their own created energy technologies. The company plans to either sell electricity from renewable sources or license Google technology on terms that would promote adoption of greener energy, according to founders Larry Page and Sergey Brin.

As part of the effort, the search engine company is to hire 20-30 experts in the energy field over the course of the next year. If all goes to plan, corporations will begin to significantly address their energy needs and climate change going forward. Google joins in the efforts of green energy companies and UK energy companies outside of the ‘big six’ who champion consumers when it comes to taking control of their energy.

Larry Brilliant, executive director of Google.org comments that the effort to mitigate the effects of climate change through clean energy ties into Google.org’s mission to improve human health and wipe out poverty.

As a colossal consumer, Google can generate cheaper sources of electricity and revenue through its developed technologies. These technologies could bring cheaper energy to deprived areas. Page comments: "Most people who are doing this now are trying to do it less expensive than people before, but they are not trying for that goal which will have a significant effect on the world."

Earlier this year, the company spent $3.2b to acquire Nest Labs, a digital-thermostat company. Google has also invested more than $1b into environmentally friendly energy power projects around the world.

According to Google Green, the eco offshoot of the conglomerate, “a clean energy future means investing in innovative, large-scale energy projects we believe can become major power sources for the future. To date, Google has committed over $1 billion to wind and solar projects that build a better future while also generating attractive financial returns. These projects can generate over 2GW, or enough electricity each year to power 500,000 US homes for one year.”

Google’s entry into the energy sector brings to light the ongoing shift in the utility market and raises key questions for business models going forward.

Sam Travers is an eco-warrior of sorts. He works for a green charity and blogs regularly with help and advice for those looking to make the planet a better place.

Images via wikimedia.org