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Google Energy to start disrupting the utility industry?

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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21 Responses

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  1. Jon Reed says

    @tomraftery with an interview with Google re: Google Energy, a very interesting market play I don’t fully understand…

    This comment was originally posted on FriendFeed

  2. Tom Raftery says

    Watch live streaming video from greenmonktv at livestream.comWe had a really positive show today – lots of great links to announcements from HP, Oracle, and Intel to name but a few and some great discussion in the chat box!

    Here is the chatstream from today’s show:Tom Raftery :
    http://www.dailykos.com/storyonly/2010/1/6/822520/-Freak-Current-Takes-Gulf-Stream-to-Greenland

    Joe Garde
    Hi Tom welcome back :
    massive implications for us tom

    monkchips :
    hey tom how are you doing?

    Tom Raftery :
    http://theenergycollective.com/TheEnergyCollective/56256
    http://news.bbc.co.uk/2/hi/science/nature/8437703.stm

    monkchips :
    deary me tom. quick. some good news. please.

    Tom Raftery :
    http://www.dailymail.co.uk/news/article-1241872/EXCLUSIVE-Inside-Chinas-secret-toxic-unobtainium-mine.html
    http://www.treehugger.com/files/2010/01/china-now-controls-majority-canada-s-athabasca-oil-sands-corp.php
    http://news.yahoo.com/s/ap/20100111/ap_on_re_eu/eu_vatican_climate

    divydovy :
    *blush*

    Tom Raftery :
    http://hungerforhealth.wordpress.com/2009/12/29/the-7-foods-experts-wont-eat/

    monkchips :
    Popenhagen

    Tom Raftery :
    http://www.ohgizmo.com/2010/01/09/ces2010-rca-airnergy-charger-harvests-electricity-from-wifi/

    monkchips :
    thats terrifying
    i mean-
    that much 4radiation ?
    shite
    i will continue to keep wifi out of the house. my son has a thin skull
    ah feck – that’s the problem….

    Forbairt :
    14 wifi networks here

    divydovy :
    http://www.techdirt.com/articles/20061212/080748.shtml – A Year Of WiFi Radiation Equals 20 Minutes On A Cell Phone – unverified

    monkchips :
    yeah- my 4yo doesnt need a phone either…

    divydovy :
    Microwaves definitely a more dangerous frequency too…

    Tom Raftery :
    http://news.cnet.com/8301-11128_3-10429865-54.html

    monkchips :
    aha. tom – did you shut the shutters? its good to see you not looking like nosferatu

    divydovy :
    And you can’t run from mobile phone signals either

    monkchips :
    MUCH better

    Tom Raftery :
    http://news.cnet.com/8301-11128_3-10429865-54.html
    http://www.hp.com/hpinfo/newsroom/press/2010/100106xa.html

    monkchips :
    after the show
    please get the timings for the HP stuff. i know ed gemmell and others will appreciate. perhaps a blog post?

    Tom Raftery :
    http://www.ecofriend.org/entry/intel-s-atom-powered-home-automation-system-helps-save-energy/

    Joe Garde :
    speaking of energy ! breakingnews : Britain’s reserve of stored gas dips to just six hours worth as cold persists and imports are delayed http://bit.ly/5lU6KV

    Tom Raftery :
    http://www.newenergyworldnetwork.com/renewable-energy-news/by_technology/energy_efficiency/doe-awards-47m-in-funding-to-advance-energy-efficiency-in-the-it-sector.html?utm_source=NewNet+Clean+Energy+Investor+Newsletter%28c%29&utm_campaign=7614e7f584-newnet_newsletter1_test&utm_medium=email
    http://www.newenergyworldnetwork.com/renewable-energy-news/by_technology/energy_efficiency/corporate-demand-for-renewable-power-never-greater-says-renewable-power-company-smartestenergy-as-it-reaches-1500mw-milestone.html?utm_source=NewNet+Clean+Energy+Investor+Newsletter%28c%29&utm_campaign=44f0e3a4b2-newnet_newsletter1_test&utm_medium=email

    divydovy :
    Flexitricity are another interesting company in this sector

    Tom Raftery :
    http://www.newenergyworldnetwork.com/renewable-energy-news/by_technology/wind/uk-announces-offshore-wind-energy-expansion.html?utm_source=NewNet+Clean+Energy+Investor+Newsletter%28c%29&utm_campaign=44f0e3a4b2-newnet_newsletter1_test&utm_medium=email

    Joe Garde :
    only 20 years late

    Tom Raftery :
    http://www.guardian.co.uk/environment/2010/jan/03/european-unites-renewable-energy-supergrid

    mikethebee :
    Just made it

    divydovy :
    This is a really interesting German experiment with renewables-only grid: http://www.kombikraftwerk.de/index.php?id=27 – different from supergrid but relevant

    Tom Raftery :
    http://greenmonk.net/google-energy-to-start-disrupting-the-utility-industry/

    mikethebee :
    Google Voice is US only is it not?

    liveireland :
    yes

    Joe Garde :
    didnt google patent some server farm technology recently (cooling)

    liveireland :
    they did

    mjays :
    @divydovy you might want to take a look at this: http://tech.slashdot.org/story/09/09/10/0246238/Lichtblick-and-Volkswagen-To-Build-Swarm-Power-Plants?from=rss

    liveireland :
    liquid cooling on bread board

    Tom Raftery :
    http://www.nytimes.com/2010/01/07/opinion/07kristof.html

    monkchips :
    yep i am here

    liveireland :
    Costa Rica
    ye read this earlier

    The guardian loved it

    Tom Raftery :
    http://www.treehugger.com/files/2010/01/mexico-clean-up-air-auto-emissions.php
    http://theenergycollective.com/TheEnergyCollective/56269
    http://www.oracle.com/us/corporate/press/042940

    divydovy :
    Re: water stuff. New ExxonMobil oil shale tech will extract oil using electricity – recover 50% more energy than input, uses 1.5 barrels of water per barrel of oil. I really hope they never use this tech. http://bit.ly/4M053C
    good show Tom thanks

    liveireland :
    Tom, just a suggestion….Maybe it would be a good idea to feature climate change sceptic links of the week too and debunk or debate them as the case may be at the end of the show.
    although I know you’re more energy focused

    monkchips :
    dont worry about them
    tom
    YAY!!!!!!!!!!!!!!!!!!!!!
    great to hear it tom!
     
    divydovy :
    http://twitpic.com/wwp3d

    monkchips :
    well said tom

    liveireland :
    ok but here you’re preaching to converted they have the upper hand in the press

    monkchips :
    no thanks @liveireland

    liveireland :
    this week
    ok

    monkchips :
    we can’t make money fighting trolls#

    liveireland :
    true
    ok

    monkchips :
    if we can’t make money we’re not sustainable…

    mikethebee :
    Good Show, welcome back, HNY.

    monkchips :
    cheers mike! cheers tom! cheers everyone

    liveireland :
    slan thanks

    Forbairt :
    Thanks for the roundup

    Tom Raftery :
    Thanks everyone for the interest, comments and suggestions
    Thanks James (@forbairt)

    yellowpark :
    tom et al
    hi
    cheery show this one
    excuse me while i go outside a get depressed Watch live streaming video from greenmonktv at livestream.com We had a really positive show today – lots of great links to announcements from HP, Oracle, and Intel to name but a few and some great discussion in the chat box! Here is the chatstream from today’s show: Tom Raftery : http://www.dailykos.com/storyonly/2010/1/6/822520/-Freak-Current-Takes-Gulf-Stream-to-Greenland Joe Garde Hi Tom welcome back : massive implications for us [...]

    This comment was originally posted on Greenmonk: the blog

  3. Monty 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?

  4. Monty says

    and for those of you who arent sure what energy procurement is…

    http://www.wholesalepower.co.uk/wholesale-energy-procurement-and-wholesale-power.html

    :)

  5. Smart British Energy Gas 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

Continuing the Discussion

  1. GreenMonk Energy and Sustainability show 11th January 2010 — GreenMonk: the blog linked to this post on January 11, 2010

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  2. Coté's People Over Process » Links for January 11th linked to this post on January 12, 2010

    [...] Google Energy to start disrupting the utility industry? [...]

  3. Smart grid: hacia las autopistas de electricidad « RDi Press linked to this post on February 18, 2010

    [...] Google Energy to start disrupting the utility industry? (greenmonk.net) [...]



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