On September 13, 2013, Google announced that it had signed a contract to buy the entire output of the 239 MW Happy Herford “wind farm” that is being developed by Chermac Energy near Amarillo, Texas. The project is expected to begin operation in late 2014.
Undoubtedly Chermac Energy is pleased to have a 20-year contract (purchased power agreement) for the sale of the electricity that will be produced. The Google deal will provide the developer a guaranteed cash stream that will enable project financing.
Undoubtedly, Google is pleased with all the favorable publicity the company has received for being so environmentally committed even though the wind-generated electricity will not be used in a Google facility. Instead, according to Google, the electricity will be sold in the wholesale market and Google will purchase the electricity it needs from the utilities serving its facilities or a wholesale supplier. Google will “retire” the renewable energy credits (REC) resulting from the deal.