Google pioneers clean transition tariff with NV Energy to boost clean energy access

Google has announced a novel partnership with NV Energy, aimed at creating a sustainable energy grid to support America's burgeoning electricity demands. This collaboration introduces the innovative Clean Transition Tariff (CTT), a model that could potentially revolutionize energy procurement across the United States.

Since its inception, Google has led the charge in adopting renewable energy sources like solar and wind through Power Purchase Agreements (PPAs). However, the limitations of PPAs, notably their disconnection from broader grid strategies and the variability of renewable sources, have prompted the need for more robust solutions. This new model addresses these challenges by fostering investments in "clean firm capacity" technologies, such as enhanced geothermal, long-duration energy storage, and advanced nuclear power.

The CTT enables utilities and large energy consumers to forge long-term agreements to support and invest in projects that provide consistent, clean energy. NV Energy, a subsidiary of Berkshire Hathaway Energy, is the first utility to implement this strategy, embarking on a partnership with Google to integrate 115 MW of enhanced geothermal power from Fervo Energy into Nevada’s grid. This initiative not only aims to meet Google's clean energy objectives but also paves the way for similar agreements nationwide, enhancing grid reliability and supporting clean industrial growth.

Doug Cannon, President and CEO of NV Energy, stated, “NV Energy and Google’s partnership to develop new solutions to bring clean, firm energy technology—like enhanced geothermal—onto Nevada’s grid at this scale is remarkable. 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. If approved, it provides a blueprint for other utilities and large customers in Nevada to accelerate clean energy goals. We look forward to progressing this proposal through the regulatory process to approval and look forward to sharing this with other customers to advance the additional economic opportunities it can bring to our State.”

As the proposal awaits approval from the Public Utilities Commission of Nevada, it stands as a testament to Google’s commitment to achieving 24/7 carbon-free energy by 2030 and exemplifies a true effort towards a carbon-neutral future.