Google and NV Energy seek approval from Nevada regulators for an energy supply agreement that would allow large energy users to pay a premium for 24/7 clean energy from new resources. The agreement would involve NV Energy purchasing electricity from the Fervo Energy Corsac Station Enhanced Geothermal Project and selling it to Google at a fixed fee. This would help Google offset demand charges at its data centers in Storey County, Nevada.
The proposed tariff aims to promote the deployment of dispatchable carbon-free energy resources like geothermal or nuclear generation by allowing energy users to offset the cost difference between these resources and cheaper options like solar or natural gas. Google’s global head of energy market development, Caroline Golin, believes that this business model could accelerate the adoption of next-generation renewable energy technologies.
Under the tariff, Google would pay the difference between the cost of geothermal energy and the cheapest resource that NV Energy could have implemented under lower-cost regulatory requirements. In return, Google would receive credit on its electricity bills for the energy and generation capacity. This would help Google hedge against rising fuel costs and demand charges, while also benefiting NV Energy by providing access to firm, dispatchable renewable energy without the need for additional solar and natural gas investments.
Golin highlighted that Nevada aims for net-zero emissions, and NV Energy targets 100% renewable energy, but their current plan involves overbuilding solar and relying on gas. The tariff would accelerate the commercialization of renewable energy resources while avoiding stranded assets. Google initially explored this concept after reviewing NV Energy’s long-term resource plan and is looking to expand this framework to other states and customers. Discussions are already underway with Duke Energy and other technology companies to replicate similar agreements in North and South Carolina.
Overall, Google’s goal with this tariff is to create a framework that can be applied to various energy resources and technologies, such as advanced nuclear generation and virtual power plants, with other utilities across the country. The company’s approach to integrating dispatchable carbon-free energy resources into its energy supply chain could serve as a model for the broader industry’s transition to cleaner energy.
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https://www.utilitydive.com/news/google-fervo-nv-energy-nevada-puc-clean-energy-tariff/719472/