Google enters clean energy partnership with NV Energy

Posted on June 17, 2024 by Dave Kovaleski

Google is partnering with NV Energy, a subsidiary of Berkshire Hathaway Energy, to expand its use of clean energy.

At the heart of the partnership is a new clean transition rate – also called a “clean transition tariff” (CTT) – that can be applied to multiple electricity markets across the United States. The proposed structure is currently awaiting review and approval by the Nevada State Public Utilities Commission.

Typically, companies purchase clean energy, mainly wind and solar power, through power purchase agreements (PPAs) with project developers. But this approach has limitations.

PPAs are often isolated from broader network planning and utility investment processes, and weather variability can mean inconsistent availability of solar and wind energy. Therefore, fully decarbonizing power systems will require different technologies that can provide clean energy whenever needed. These technologies, such as enhanced geothermal energy, long-term energy storage and advanced nuclear energy, are in their early stages, are relatively expensive and are not adequately incentivized by current regulatory structures. As a result, customers often continue to rely on fossil fuels for reliable energy when solar and wind power are not available.

To provide better access to the benefits of 24/7 zero-emission energy technologies, a new approach is needed to make it easier to invest in clean energy projects that ensure consistent grid performance.

The new CTT agreement brings together utilities and customers in a long-term energy agreement that could facilitate investment in new projects that provide clean, consistent grid power. NV Energy is the first utility to implement this new approach as part of its energy supply contract with Google.

Both organizations evaluated solutions to ensure clean local grid efficiency and settled on improved geothermal energy. NV Energy then worked with developer Fervo Energy to incorporate 115 MW of new and improved geothermal energy into our CTT partnership and provide Google with the full value of its capacity. Finally, partners collaborated to propose a framework that can be adapted to work across state regulatory environments to meet state and customer goals.

“NV Energy and Google’s partnership in developing new solutions to bring clean, reliable energy technology – like enhanced geothermal – to Nevada’s grid at this scale is extraordinary. This innovative proposition will not be paid for by other NV Energy customers, but will help ensure all of our customers benefit from cleaner and greener energy resources,” said Doug Cannon, president and CEO of NV Energy. “If approved, it provides a blueprint for other utilities and large customers in Nevada to accelerate clean energy goals.”

If the CTT framework is widely adopted in U.S. markets, it could expand clean energy production capacity and improve grid reliability, accelerate the deployment of new technologies needed to enable clean industrial growth, and bring the economic benefits of clean energy to communities around the world.

Duke Energy has already announced agreements with Google and others to develop CTT in the southeastern United States. Google hopes the model will be used in other regions.

This partnership will help Google achieve its goal of operating its data centers and office campuses on carbon-free energy (CFE) by 2030.