Beyond our own activities, we are working to make clean energy a mainstream and remove barriers for those who want to buy renewable energy. Today, we are announcing two new Google.org grants to provide additional support to organizations that are expanding access to clean energy for all businesses, from florists to big box retailers to start-ups. We are providing a $500,000 grant to the Renewable Energy Buyers Alliance (REBA) in the United States and a grant of 500,000 euros for RE-Source in Europe. These subsidies will help finance the development of new purchasing models, provide training and resources to consumers and provide wider access to clean electricity. In 2009, our data center team began to study POWER Purchase Agreements (PPAs): large-scale long-term contracts to purchase renewable energy in quantities that would meet the needs of our company. The idea behind using an AAE is simple: Google cannot buy clean energy from our distribution companies because the regulatory restrictions apply to our retail contract, and we cannot produce it far enough behind the measuring device in our data centers due to physical and geographic constraints. But at the wholesale level, we can buy it directly from developers on the same networks where we operate our data centers. Last fall, Pichai said that Google`s planned purchases include 490 MW in Texas. In addition to being remarkable for their size, the agreements in the United States are also notable for their focus on solar energy, he added. «Together, these agreements will increase our global portfolio of solar and wind contracts by more than 40% to 5.5 GW, the capacity of one million solar roofs,» said sundar Pichai, CEO at the time. Our recent agreements will also stimulate the construction of more than $2 billion worth of new energy infrastructure, including millions of solar modules and hundreds of wind turbines on three continents. The tech giant has eliminated all its carbon assets and is moving 24 hours a day towards renewable energy.
More importantly, it is looking for ways to create other renewable buyers to follow in its wake. The answer is given to the Renewable Energy Certificates (REC) issued by the renewable energy industry to cover each unit of energy produced from renewable sources. Manufacturers can use RETs to check how much clean energy they produce, and consumers can purchase this audit based on their consumption. When Google buys renewable energy, in addition to physical energy, we also buy the corresponding RECs. We then sell renewable electricity to the wholesale market, but we maintain the RECs. We operate our facilities with regular electricity purchased by local utilities, and we sustainably reduce RETs to our actual energy consumption, thereby reducing our carbon footprint. «A political landscape that offers a clear path to the supply of low-cost renewable energy is essential, as more and more people and organizations want to access carbon-free energy. We applaud Taiwan for giving the green light to green energy initiatives like ours – the first of which, hopefully, in the region,» he added. It`s a confusing system, but long-term PPP contracts give Google the certainty of how much we`re going to pay for future energy, while we give renewable energy developers the stability to finance and build new projects – and thus maintain the principle of additionality, that each electricity agreement should bring more renewable energy to the grid.