Google takes stake in new green power plant in Taiwan to increase use of renewable energy

CEO Insights Asia Team | Monday 01 July 2024

Google acquired shares in Taiwanese New Green Energy (NGP)BlackRock-owned solar energy company plans to acquire up to 300 megawatts of renewable energy. The move is in line with Google’s ongoing efforts to reduce carbon emissions across its operations and supply chains.

As companies face growing pressure from investors to curb greenhouse gas emissions, Big Tech companies like Google are setting ambitious goals. Google’s ultimate goal is to operate on carbon-free energy worldwide. But growing demand for data processing power, driven by advances in artificial intelligence, has helped fuel emissions. Taiwan, where Google has significant cloud infrastructure, including a data center and offices, currently relies on fossil fuels for about 85% of its energy production.

“The purpose of this investment is really to support the construction of a large-scale solar pipeline in Taiwan,” said Amanda Peterson Corio, global director of data center energy at Google. The strategic move is intended to support the development of renewable energy in the Asia-Pacific region, which faces challenges such as underdeveloped infrastructure and regulatory restrictions that limit businesses’ access to green energy.

New Green Power, backed by BlackRock’s Climate Infrastructure Fund, is a prominent developer and operator of solar energy in Taiwan. David Giordano, Global Head of Climate Infrastructure at BlackRock, highlighted the company’s role in developing Taiwan’s renewable energy sector. While neither Google nor BlackRock disclosed the exact size of the equity stake, Corio indicated that the investment will accelerate financing for NGP’s 1-gigawatt solar project.

Taiwan has set ambitious solar capacity targets, aiming for 20 GW by 2025 and 80 GW by 2050. This partnership is expected to play a significant role in achieving these goals.

In addition to using the purchased solar power for its own operations, Google plans to distribute some of the energy to its suppliers and manufacturers in Taiwan. This approach aims to reduce Google Scope 3’s indirect emissions associated with its value chain by enabling suppliers to access renewable energy.

Google’s investment in NGP not only highlights its commitment to sustainability, but also underscores the growing trend among global technology companies to integrate renewable energy solutions to your operational strategies.