Google, KKR to invest $189 mn in four California solar farms
21 Dec 2011
Internet giant Google and private equity firm Kohlberg Kravis Roberts & Co (KKR) are investing $189 million in four California solar farms under construction and other projects not yet announced.
Google will invest $94 million in four solar farms south of Sacramento, which are under construction, while KKR will invest $95 million in solar farms, including the Sacramento facilities and other projects it has not yet announced.
Google and KKR will become majority owners of the projects that are being developed by Recurrent Energy, a subsidiary of Sharp Corp, which will remain a minority stake holder and operate the facilities.
This brings Google's investment in clean energy to more than $915 million, but this investment is its first in the US in larger scale solar photovoltaic power plants that generate energy for the grid - instead of on individual rooftops.
These projects have a total capacity of 88 MW, equivalent to the electricity consumed by more than 13,000 homes, said Axel Martinez, assistant treasurer at Google Treasury in a blog post.
However, the energy produced by these projects is already contracted for 20 years with the Sacramento Municipal Utility District, which has recently created a feed-in tariff program to help green the grid for Sacramento-area residents.
