Google has signed a new Power Purchase Agreement (PPA) with Madrid-based renewable energy company EDP Renewables (EDPR) to procure solar energy in the U.S.
The PPA was signed through EDPR NA Distributed Generation (EDPR NA DG) for the installation of more than 80 distributed solar PV projects with around 650 MWp (500 Mwac).
The agreement is EDPR’s largest distributed generation deal to date as well as the largest corporate sponsorship for distributed generation signed between two companies in the United States, according to S&P Global and BloombergNEF (BNEF) data.
EDPR’s business unit in the U.S. will develop the projects across six US states, with the first solar project locating in Ohio, where Google operates a data center campus in New Albany and a Google Cloud region in Columbus.
Locations of other solar sites weren't disclosed, but EDPR said the initial focus would be within the PJM Interconnection service area, which stretches from New Jersey to Ohio.
EDPR NA DG will be responsible for the development, construction, and operation of the solar PV parks, with the first projects being due online by the end of 2024.
EDPR added that the energy projects will also reduce electricity bills for about 25,000 low-to-moderate income (LMI) families.
At least 35% of the projects are planned to be developed in LMI communities, according to Google. Additionally, the company said at least 10% of the portfolio’s revenues will be redirected annually for up to 15 years as utility bill credits to more than 25,000 households facing a high energy burden.
The portfolio will also be partially financed by Google's acquisition of ‘Impact Renewable Energy Certificates’ (ImpactRECs), an instrument that certifies that a given buyer has the rights to the environmental and social benefits of the renewable electricity produced by a renewable project.
“Partnering with EDPR NA DG, we aim to reduce energy burden in the communities where we operate, while progressing toward our 24/7 carbon-free energy goal,” said Sana Ouji, energy lead, Google.
2023 has seen Google sign several PPAs, including Ørsted in Texas and Sol Systems for projects in North & South Carolina, as well as Luminus in Belgium and Eneco in the Netherlands.
Google broke ground on its $600 million data center campus in New Albany in 2019 and subsequently announced plans to invest an additional $1 billion to expand the site. The company is also planning another campus in Columbus and has bought land in Lancaster. The company's Columbus cloud region launched in May 2022.