Google unveils geothermal power deal with NV Energy in Nevada

Alphabet Inc’s (NASDAQ:GOOGL) Google LLC is partnering with Berkshire Hathaway-owned utility NV Energy to secure geothermal power supply for its data centres.

The US tech giant said on Tuesday that the arrangement will support its goal to run its data centres and office campuses on 24/7 carbon-free energy (CFE) by 2030. Specifically, Google and NV Energy have developed a new clean transition rate, called the Clean Transition Tariff, which they will seek to replicate in electricity markets across the US.

Subscribe for Renewables Now's Corporate PPA Newsletter here for free!

To facilitate the power supply, NV Energy has tapped startup Fervo Energy to provide 115 MW of geothermal power capacity for the CTT partnership with Google. The geothermal developer is already delivering 3.5 MW of power to Google through a pilot programme that commenced in 2021.

The CTT proposal should be greenlit by the Public Utilities Commission (PSC) of Nevada.

Google explained that the new structure was developed to wave off limitations of the power purchase agreement (PPA) model. According to them, as PPAs are often isolated from broader grid planning and utility investment processes and are tied to variable wind and solar generation, there is a strong need for other technologies to support the full decarbonisation of electricity systems.

“This innovative proposal will not be paid for by NV Energy’s other customers but will help ensure all our customers benefit from cleaner, greener energy resources,” said Doug Cannon, CEO of NV Energy.