Google, the Renewable Energy Utility Company

May 26th, 2008 by Loren Baker, Editor | 6 Comments

Google’s direction to fuel the green utility market is quite amazing and opens doors for so much more of a direction in efficiency for the company which is so different, yet similar to search.

Google’s search algorithm is based upon efficiency and serving the right results based on mathematical, not human, evaluation. Their involvement in the energy & utility industry is not unlike that of search; finding and investing in energy generation sources which are economically sound from an environmental and return on investment aspect.

Google’s algorithm for clean energy investment is much easier than their search relevancy algorithm as it consists of two simple variables and one equation even a 6 year old can understand, RE < C (Renewable Energy Cheaper Than Coal).

From Google’s Statement on Green Energy Investment :

RE
RE
In 2008, Google expects to spend tens of millions on research and development and related investments in renewable energy.
As part of its capital planning process, the company also anticipates investing hundreds of millions of dollars in breakthrough renewable energy projects which generate positive returns.

Google has identified the problem in renewable energy production, capitalist vs. idealist.

Renewable energy is not going to change the world if the discussion and movement is restricted to a handful of trustifarians (trust fund hippies) or Nader’s dissolving Green Party. It has to be profitable, out in the open, and able to gain interest by other corporations and government bodies.

Instead, Google has spearheaded a national movement to invest wisely in renewable energy technology by convincing their investors and stock holders that doing so will be profitable and intelligent. The end result; a world less dependent on coal and fossil fuels and Google becoming an even larger and stronger company; now enjoying the same fortune as Chevron and Pacific Gas & Electric.

Comments

6 responses so far ↓

MrCooker on May 26, 2008 at 11:55 am

Damn Google is always 1 step ahead of the rest. No wonder they are as successful as they are.
TrafficHype on May 26, 2008 at 2:23 pm

Is there any market that google is not involved in !
MrCooker on May 26, 2008 at 3:18 pm

@TrafficHype Is there is, it will not last for long
Matt Cutts on May 26, 2008 at 4:32 pm

I think RE < C is one of those “big bets” that can potentially have a huge payoff. It’s pretty exciting to read about companies like Makani Power, which tries to harness wind at high altitudes.
Mo on May 26, 2008 at 7:16 pm

“In 2008, Google expects to spend tens of millions on research and development and related investments in renewable energy.”

Will that include hydro?
Loren Baker, Editor on May 26, 2008 at 8:55 pm

Mo, I don’t know because hydro is a pretty tough one, usually effecting surrounding ecosystems and local environments. If hydro could be tapped in ocean currents, that would be a cool and ecofriendly option.

Matt, I’ll have to look into Makani, sounds awesome.

And yes, this is a rather exciting venture by Google which could lead to huge payoffs across the globe.