Tech giant Google has entered into a partnership with Energix Renewables, a US-based independent power producer and part of the global Energix Group for the development of solar projects.
The long-term strategic agreement covers 1.5GWp of solar project development through 2030, with potential for future expansion. Energix will supply Google with electricity and Renewable Energy Credits (RECs) from these projects. Google will also provide tax equity for Energix’s initiatives.
The agreement features a market-adjusted energy price with downside protection, competitive REC pricing, and tax equity investments. The initial two Power Purchase Agreements (PPAs) under this deal have already been signed.
Morgan Stanley & Co. LLC served as the sole financial advisor to Energix in negotiating this agreement with Google.
Asa (Asi) Levinger, CEO of the Energix Group said, “We are thrilled to embark on this strategic collaboration with Google. This agreement underscores our leadership in the US renewable energy market, enabling us to leverage our unique expertise and resources for unparalleled growth and advancing Google towards its net zero and 24/7 carbon-free energy ambitions. I want to thank Google, Morgan Stanley, and all our employees who worked diligently to make this deal happen.”
Amanda Peterson Corio, Global Head of Data Center Energy, Google said, “There is no one-size-fits-all solution when it comes to decarbonising our electricity grids and no one company can do it on their own. We are proud of our work with Energix Renewables to unlock new clean energy in PJM. This type of collaboration is essential as we continue to progress towards our ambition to run on 24/7 carbon-free energy (CFE) on every grid where we operate every hour of every day.”
Itamar Sarussi, Deputy CEO and CCO of Energix US said, “This announcement heralds a transformative era in renewable energy. The visionary structure of this agreement ensures mutually beneficial outcomes that should enhance shareholder value for both companies, driving forward the renewable energy revolution.”
“This agreement underscores the importance of collaboration among market leaders across sectors to meet the goals of energy transition and the power needs of transformative technology, such as AI applications and the data centres that house them.” Jorge Iragorri, Managing Director, Morgan Stanley & Co. LLC.