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Corporate PPA: Google progresses on clean energy targets, signs two new PPAs in Europe

image credit: Enerdatics
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Under a 12-year power purchase agreement (PPA), the company will offtake more than 5 TWh of green power from a 100 MW share of the 882 MW Moray West offshore wind project in the UK. The project will be built using 60 Siemens Gamesa 14.7 MW fixed-bottom turbines, being developed by Ocean Wind, a 50:50 JV between EDP Renewables and ENGIE. Lithuania-based Ignitis Group also holds a minority 5% stake in the wind farm. The project has secured a 15-year Contract for Difference from the UK government for the delivery of 294 MW at a tariff of 37.35£/MWh (in 2012 prices). The project also signed a long-term corporate PPA for a capacity of 350 MW, with an undisclosed well-known multinational firm, earlier this year. The partners expect to reach a financial close on the development by the end of the year, with commercial operation estimated by 2024/25. Today’s PPA implies that ~84% of the wind farm’s output is contracted under long-term agreements. 

Google also signed a 12-year corporate PPA with German power producer ib vogt, for the 149 MW Garnacha solar power plant in Spain. The project secured approval on its environmental impact statement in December 2021 and has also received administrative authorization from the Ministry for the Ecological Transition and the Demographic Challenge. Ib vogt reached a financial close on the asset in Aug’22 with a €90mn long-term debt facility provided by Norddeutsche Landesbank Girozentrale and Santander CIB. Construction of the solar plant started in Sep’22, with commercial operations expected by Oct’23. Ib vogt will provide EPC, (operations and maintenance) O&M, and asset management services to the project. 

The agreements mark the third PPA signed by Google this year after the company agreed to offtake 942 MW of power from four solar projects in Texas from SB Energy. The tech giant has signed more than sixty PPAs globally during 2010-2021, representing over 7 GW of renewable energy. During this period, the company has reduced its cumulative GHG emissions by 65%, with carbon intensity declining by 81%. Google targets to operate on carbon-free energy 24/7 and achieve net-zero emissions across all of its operations and value chains by 2030.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation. 

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Sanskruti  Rajore's picture
Sanskruti Rajore on Nov 28, 2022

Google has set an aggressive goal to operate on 24/7 carbon-free energy by 2030. This is Google's first PPA in Spain.  Spain was the largest PPA market in Europe last year with almost 4 GW of deals. Spain also has an ambitious decarbonization goal underway to produce more than 70% of electrical energy from renewable sources by the year 2030. Owing to all these reasons Spain will witness more such transactions in the near future.

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