Campbell: Technology companies’ strategies for green and renewable energy

A recent article from CNET, “Google gets go-ahead to buy, sell energy,” appeared in its… A recent article from CNET, “Google gets go-ahead to buy, sell energy,” appeared in its website’s “Green Tech” section.

So what are Google’s new ideas for green and renewable energy? After all, Google maintains most of its services — most notably Gmail and its popular searching capabilities — by assembling large numbers of power-hungry servers.

If Google is like the rest of us, much of this power comes from coal and other fossil fuels, giving Google a rather sizable and problematic carbon footprint.

Green and renewable energy sources, including solar, geothermal, wind and hydroelectric power, account for a comparatively small amount of the power available to companies operating in the United States. An article on Forbes.com states that only around 2 to 3 percent of all the power generated in the United States is generated without the use of carbon-producing fuels.

Google’s latest answer to this dilemma is to seek the right to deal in energy trading. Combined with some offshoot ventures previously spawned by Google, energy trading can assist Google in increasing the amount of energy it consumes from renewable sources. As the CNET article’s title suggests, The Federal Energy Regulatory Commission recently granted Google the right to begin energy trading operations.

The true extent of Google’s aspirations in the energy industry is unclear. Google spawned Google Energy, based in Delaware, in December 2009. With the nod from FERC, Google will now be able to use Google Energy to enter the commodities market to procure energy from green sources, either to regulate its own energy consumption or to go headlong into the world of energy commodities trading.

A Google commodities trader would begin performing similar functions to the wholesale energy trading operations of the former energy giant Enron and could use its position to influence the cost of renewable energy.

The CNET article mentions that if Google remains primarily concerned with its own energy needs, it will follow in the footsteps of many previous energy-hungry companies.

If Google enters the energy market full-strength, it might mean an interesting new chapter in the company’s life, allowing it to move beyond its existing ventures into the energy generation technology arena.

Google’s news also shines a light on the burgeoning trendiness of green energy among technology companies.

There was a time when computer and device manufacturers hungered for more power for beefy processors at the cost of problematic energy consumption.

Now, manufacturing companies from Dell to Hewlett-Packard vow to focus on energy efficiency in both their operations and their future device designs.

Forbes.com reported in April 2009 that Dell promised to increase its current ratio of renewable to non-renewable energy from its current 35 percent, as well as to focus on creating computers that are more energy efficient. Dell also pointedly advertises its investments in the renewable energy arena.

The future of Google and Dell’s interests in the energy arena seem to provide an excellent look at how renewable energy might develop in coming years. Renewable energy, if it remains pricy, will become increasingly problematic for companies that consume a lot of energy, like Google.

Companies like Google that seek to cultivate a green thumb — because of a sensitive conscience or for bragging rights — might be able to pull some corporate trickery to influence the price of renewable energy. They could even make renewable energy more available and prevalent.

Companies like Dell, which wish to create green products, might be the driving forces behind green technology innovation, either generating new, green designs in-house or by investing in smaller ventures with good ideas.

There are still dangers ahead for those who dare to tinker with the energy markets through wholesale trading. An article published in The New York Times in 2006 questioned whether ventures into the wholesale energy commodities market would be able to consistently benefit the investor, considering the cabal of competing interests that ran into the fray when Enron collapsed.

Google may be in for some interesting trading.