Google (NASDAQ:GOOGL) has announced its inaugural Clean Transition Tariff-based (CTT) supply agreement, aiming to boost clean technology investments and assist companies in achieving their climate objectives. This new market rate structure is designed to promote the next generation of clean technologies and facilitate investments in renewable energy sources.
Previous implementations of renewable energy agreements often relied on Power Purchase Agreements (PPAs), where buyers commit to acquiring a set amount of energy from providers, encouraging developers to innovate in renewable technologies. Despite this, the intermittency of solar and wind power necessitated reliance on fossil fuels. Unlike PPAs, the CTT structure is intended to support more reliable forms of energy, such as geothermal, advanced nuclear, and long-duration storage, which are not sufficiently incentivized by existing regulations.
The newly signed agreement with Berkshire Hathaway (NYSE:BRK.A) Energy’s subsidiary, NV Energy, focuses on integrating geothermal energy into Nevada’s grid. Google, through NV Energy, has secured 115 MW of enhanced geothermal energy from Fervo Energy to advance its goal of operating on 24/7 carbon-free energy by 2030. This commercial pilot demonstrated Fervo’s ability to provide enhanced geothermal power on a commercial scale.
Geothermal Energy Investment
NV Energy’s President and CEO, Doug Cannon, highlighted the significance of the partnership in bringing clean, firm energy technologies like enhanced geothermal to Nevada’s grid. This innovative approach will not impact NV Energy’s other customers financially but aims to ensure that all customers benefit from greener energy resources. If successful, it could serve as a model for other utilities and large customers in Nevada to expedite their clean energy initiatives.
Google has also indicated that the new CTT structure is adaptable to electricity markets across the U.S. The framework developed in collaboration with NV Energy can be customized to fit state-specific regulatory environments, making it a versatile solution for meeting state and customer goals.
Expanding Clean Energy Capacity
Amanda Peterson Corio and Briana Kobor from Google emphasized that the benefits of the CTT model extend beyond Google. If adopted widely across U.S. markets, the CTT structure has the potential to expand clean energy capacity, enhance grid reliability, accelerate the deployment of new technologies, and bring economic benefits to various communities.
- CTT structure supports reliable clean energy sources.
- Google’s partnership with NV Energy focuses on geothermal energy.
- Framework adaptable to different state regulations.
The collaboration between Google and NV Energy marks a significant step forward in clean energy adoption. By investing in enhanced geothermal energy, they address the intermittency issues of other renewable sources. The CTT model also offers a scalable and adaptable framework for other states and electricity markets. This approach not only meets climate goals but also promises economic benefits to communities.
