Tomahawk, WI 11/14/2013 (BasicsMedia) –  Google Inc (NASDAQ:GOOG) is reported to have entered a joint solar plant venture deal with private equity company KKR & Co. The two companies are aiming to install six solar plants at the cost of about $400 million. The green energy plants will be in California and Arizona and will be built by Recurrent Energy, according to a Reuters report. Out of the six solar stations to be built, one will be in Arizona while the remaining five will be built in California. The search engine giant Google is putting $80 million in the venture as its investment stake. The energy capacity of the six solar plants is expected to be 106 MW of electricity. This amount of electricity is adequate to power more than 17,000 U.S. homes.

The search engine company’s investment partner in the solar energy KKR runs a program called Green Portfolio Program in which it assesses its investment companies in terms of their environmental impact. The constructing firm Recurrent Energy which is mandated to build the solar plants is am energy unit of Sharp Corp, a Japanese company.

Big techs increasing presence in clean energy investment

Big tech companies have lately increased their investment in clean energy. Google Inc (NASDAQ:GOOG) in particular has numerous clean energy investments, including the $1 billion commitment for win and solar projects. The company ranks among the big techs with huge investment in environmentally friendly electricity. The company is expected to buy the electricity generated from the six solar plants from joint venture with KKR to power some of its data centers.

Investment in clean energy is capital intensive and just a couple of companies have taken the challenge. Other tech companies with footprint in clean energy include Microsoft. Due to global warming, proponents of clean energy have been pressing big corporations to reduce their carbon footprint by shifting to cleaner electricity to power their factories. But the upfront costs involved in such shifts have been the prohibiting factor for many companies. This is why cash endowed tech companies have saturated the list of corporate players seeking to be clean energy compliant.

Powering factories with wind and solar energy is believed to be relatively cheaper than the regular electricity. It thus means that besides reducing carbon emission, firms investing in this sector are also laying grounds for reduced utility cost on their operations. Moreover, investment in clean energy is helping in job creation in the industry.

Google Inc (NASDAQ:GOOG) has partnered with several clean energy startups to offer the investment financial leverage as well as creating job opportunities. The search engine company also hopes to buy such energy for its factories which would effectively help in carbon emission reduction as well as reduce its utility expenditure.

Subsidies in clean energy are also attracting a lot of home owners to opt for this electricity. For businesses like Google, there is also the aspect of reputation in going green in terms of energy. It is easy for clean energy compliant companies to penetrate a lot of lucrative markets where clean environment is held high. This being the case, Google is simply setting itself up for success in terms of its businesses by investing in clean energy.

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