Google and EDP Renewables sign the largest distributed solar energy contract in the USA
The signed contract between the tech giant and the leader company in the renewable energy sector allows the development of around 650 MWp (500 MWac) in renewable energy communities in 6 North American states. The companies promote a fair energy transition with an agreement that benefits around 25,000 families with low income.
Google and EDP Renewables (EDPR), through the distributed solar generation business unit of EDP Renováveis North America (EDPR NA DG), have signed a collaboration agreement that will allow the development and installation of more than 80 distributed solar energy projects, with a total of around 650 MWp (500 MWac). It is the largest agreement between two companies for the development of distributed solar energy projects in the United States, according to S&P Global and BloombergNEF (BNEF) data.
The first projects will start to be developed in the state of Ohio, where Google operates a campus of data centers in New Albany and Google Cloud in Columbus. In total, the solar projects will be developed in 6 Nort American states. EDPR NA DG will handle the development, building and exploitation of the photovoltaic solar farms, and the first projects are expected to be operating at the end of 2024.
The development of these parks will also be partially financed through the acquisition by Google of Renewable Energy Certificates (RECs), an instrument that certifies that a specific buyer has the right to the environmental and social benefits of the renewable electricity produced by a specific renewable project. Google started collaborating with EDPR almost two years ago to develop a clean energy initiative that promotes a fair energy transition and reduces the energy costs of the communities: the ImpactRECs. This way, the agreement intends to democratize the access to a cleaner energy, making their benefits available to the low-income homes.
These Renewable Energy Communities will also reduce the electricity cost for around 25,000 families with low or moderate income. The beneficiaries will be identified as the projects are developed. As with other RECs, the ImpactRECs are generated in the American energy market. However, this model developed by Google and EDP Renewables certifies the direct investment in local energy communities and ensures that those benefits are centered in providing support to the low-income communities.
“What we heard in the interviews with community leaders and developers of Environmental Justice measures was that the disproportionate price of energy continues to be a barrier for us to achieve a fair energy transition. In collaboration with EDPR NA DG, we intend to reduce the energy expenses of the communities in which we operate, and at the same time we move towards our energy goal of zero carbon emissions”, said Sana Ouji, who is in charge of Google’s Energy Management.
“We are very grateful to EDPR for its association, collaboration, and constant focus on this shared mission, and we are excited to have the opportunity to contribute to the communities where we have our data centers, expanding the benefits of our investments in clean energy to the community”.
“We are very satisfied with this agreement with Google, that will allow us to develop a substantial number of renewable energy projects and at the same time care about the most disadvantaged communities. The necessary transition towards cleaner ways of energy production and use should leave no one behind, and this partnership with Google allows us to ensure that this does not happen, making energy cleaner and, at the same time, accessible to more families”, says Miguel Stilwell d’Andrade, CEO of EDP.
Besides the purchase of ImpactRECs, the program includes the creation of a community impact fund valued in 12 million dollars, which will be centered in initiatives to reduce energy poverty in the communities where the projects will be built. With this partnership and the creation of this social responsibility mechanism, Google and EDP Renewables commit themselves to social and economic fairness of the communities near the projects, measures that are considered essential in the transition to a greener future.
The promotion of decentralized solar energy projects is one of EDP’s main pillars for growth in the next years. The company has currently around 1.4 GW installed in solar energy projects at a global level, and the goal to develop 3 additional GW in the 2023-2026 period.
In the United States, where it acquired a leader company in the distributed solar energy market in 2021, EDP Renewables is developing this business through EDP Renewables NA Distributed Generation, with more than 220 MWp in operating assets, in more than 440 projects in 20 North American states.
