Google Inc (GOOG) makes another large wind farm purchase in Sweden
Google Inc (NASDAQ:GOOG) has made a 10-year deal to buy the total output for 4 new wind farms that is scheduled for construction in southern Sweden. Google made the deal with Eolus and this is the second “purchase power agreement” (PPA) that google made in Sweden that supplies power to their data center. Google’s Finnish facility is going through a renovation that is worth around 450 million euros (around $609 million U.S.) and it will be tripling in size.
This purchasing agreement will help finance the three-year construction project by Eolus to have wind farms built in Alered (Falkenberg Municipality), Mungseröd (Tanum), Skalleberg (Hjo) and Ramsnäs (Laxå), according to ZDNet. The wind farms should be up and running by 2015 and will have 29 turbines with a total capacity of 59MW. Eolus and Google said that the planning permission was granted. This facility will go live at around the same time as a 24-turbine wind farm and O2 are building in northern Sweden with a similar PPA. Google guaranteed to buy the output from the farm with a capacity of 72MW for 10 years in the last deal.
Last year, Google invested $10 million in a 161MW Texas wind farm. That transaction brought Google’s investments in renewable energy to about $1 billion. Google also has similar PPA agreements for U.S. wind farms in Iowa and Oklahoma.
The PPA in Europe is possible because of the continent’s increasing energy market, which has support in Scandinavia by the Nord Pool power exchange. This market helps drive the exchange of energy produced in one part of the energy grid for consumption of another. This exchange is made through guarantees of origin certificates with the Swedish farm issues to Google.