Google Powers... Everything.

It's Official: Google Can Sell Power Like a Utility

Google Inc., the multitasking internet conglomerate, owns a subsidiary called Google Energy, which is the subject of the linked article. The Federal Regulatory Energy Commission has just officially granted this entity the right to sell power like any other utility company.

This is particularly interesting because of another Google subsidiary not mentioned in this article: Google.Org

Google.Org is a philanthropic division of Google Inc, focusing on investing windfall profits in a venture capital role with companies and organizations as a way of reducing Google's tax burden. Renewable energy is strongly represented in this portfolio, including high profile start-up technology companies like eSolar.

eSolar owns proprietary rights to a concentrated solar thermal tower design that has so far only been deployed in a quasi-operational pilot project. With their initial venture capital fund at their disposal to construct the pilot project and fund an extensive sales campaign, eSolar has locked down over 1 GW in PPAs already.

Here's the catch: eSolar initially intended to develop their own projects with their technology, hoping to rely on their big chunk of capital for project equity. Banks, however, have not been as receptive to new technologies in the current lending climate, and eSolar has experienced significant challenges obtaining the right combination of project partners and technology risk mitigation to actually break ground on new projects.

This leaves Google in an interesting position, being the proud new owners of an FERC approval. Via an inside contact who will remain anonymous, exclusive information was provided that Google has been exploring project development and ownership of renewable energy facilities.

For a company of Google's size and strength, not to mention money and influence, the prospect of such vertical integration in a blossoming market is somewhat frightening. On the other hand, many of the challenges to developing renewable energy that will be discussed in the coming days and weeks relate primarily to its newness- the risk inherent in new technologies, and the lack of experience and data. Perhaps Google's involvement on this level would give a jolt to the rest of the industry and bring credibility by proxy.