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Google Energy to start disrupting the utility industry?

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Google Energy

Photo credit filippo minelli

There is no doubt about it but Google is a disruptive company.

First Google disrupted search, then advertising, then video (with their acquisition of YouTube), and then Office applications with the launch and continued development of Google Apps for Domains. Most recently Google has disrupted the mobile phone industry, first with the launch of their Android operating system and just a couple of days ago with the launch of their Nexus One mobile phone.

What then should we make of Google’s recent creation of a subsidiary called Google Energy LLC and Google Energy’s request to the Federal Energy Regulatory Commission (FERC) to buy and sell electricity on the wholesale market [PDF]?

Given Google has already invested in solar power generation, given further that Google has invested in wind and geothermal power generation technologies (as part of its RE < C project), and given that Google has already launched its first product in the Smart Grid space, Google PowerMeter, should we now expect Google to start disrupting the utility industry as well?

Curious about what all this meant I contacted Google spokesperson Niki Fenwick to try to get some answers – see my questions and her responses below:

TR: What was the thinking behind Google’s setting up Google Energy? Why is Google applying to the FERC for permission to trade in electricity?

NF: Google is interested in procuring more renewable energy as part of our carbon neutrality commitment, and the ability to buy and sell energy on the wholesale market could give us more flexibility in doing so. We made this filing so we can have more flexibility in procuring power for Google’s own operations, including our data centers.

TR: Google has made some investments in renewable generation (solar, geothermal and wind), does Google hope to take on the utilities by selling electricity? How does this tie into Google’s PowerMeter project?

NF: This move does not signal our intent to operate as a retail provider and is not related to our free Google PowerMeter home energy monitoring software. We simply want to have the flexibility to explore various renewable energy purchase and sale agreements (that means we can buy electricity wholesale, rather than through a utility).

TR: Will Google Energy be used to develop more Smart Grid products?

NF: We don’t have any plans to announce at this time.

TR: How does this tie into Google’s partnership with GE?

NF: This move isn’t related to our partnership with GE.

So there you have it, according to Google this application to trade in electricity on the wholesale market is simply to gain more flexibility in procuring power for Google’s own operations, as part of Google’s carbon neutrality commitment.

Google have no plans to become a retail electricity provider.

For now. Things change.

After all, it is not so long ago that Google were denying rumours that they were developing a Google phone!

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Comments

  1. says

    Quote:
    “TR: Will Google Energy be used to develop more Smart Grid products?

    NF: We don’t have any plans to announce at this time. ”

    That’s hardly a ‘no’ from Google. I too find it worrying that Google are moving into the energy market. They say it’s only for their own energy use… but how long until they think about becoming a retail energy provider? Or have they already considered it?

  3. says

    Oh well, what can we do about this? Really, what to expect from a company that every day gets bigger and bigger simply because times are changing and technology innovating. What Google is simply trying to do is to merge into markets they see any kind of oppurtunity such as the mobile and environmetal one. Why? Simply because is a multi million company thats has access to unlimited funding and new techology with millions of affiliates around the globe. If its now trying their chances with environmental issues that is only because environmental barriers are either getting lower (they really shouldnt) or money speak louder than ethics. Either way, at least is good to know that Google’s moves are being followed. Thanks for the post, will recommend it. Cheers

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