The largest firms in Silicon Valley are now looking into renewable energy in a very serious way. This means there is likely to be rapid changes in the energy sector soon.
Businesses such as Apple (NASDAQ:AAPL) are often viewed as the makers of smart watches, computers, and phones. They are expected to come out with smart gadgets and technology breakthroughs. These businesses are not conventionally energy providers. But that changed recently when Apple purchased a solar farm in California and was allowed to sell energy. The business has already disclosed that they want to power all their operations through 100% renewable sources in the future.
There Are Others Too Getting Into Renewable Energy
But Apple is not alone in this. e-commerce giant Amazon (NASDAQ:AMZN) has announced that they will be making a 253-megawatt wind farm in western Texas to supply clean energy. They also want to power all their servers from the energy generated by wind farms. The California-based Google too has invested money in the Ivanpah Solar Electric Generating System. Google has even teamed up with SunPower to make solar panels for home use.
Ash Sharma, who works as a solar energy analyst with IHS Technology says that “For these big corporations, electricity is one of their biggest costs. Locking that in at a low price is really critical for them”.
Why Are Technology Giants Getting Into Renewable Energy?
One reason why these companies are looking at renewable energy is to reduce their operational costs. A lot of money is needed to power the modern-day data centers. They have to work round the clock, and the machinery has to be kept cool, which means a huge investment. Apart from being a clean energy, renewable power is cheaper too. This means cost savings. It could run into millions and even billions of dollars over years.
But why will Google be offering solar panels for homes? The company has a bigger plan. Google says they want to map “the planet’s solar potential” and bring the data from the panels into planning the energy strategies of the future.
Solar power is still small. It just accounts for 1 percent of the total energy resources. But things are changing with rising supply. The solar energy price is also falling. Home consumers of the future will be able to achieve substantial savings on their power bills when they tune into solar or wind power.