Massive corporations like Microsoft invest in Renewable Energy sources

Published By : 06 Nov 2013 | Published By : QYRESEARCH

Microsoft is hardly the former corporation to invest in the renewable sources of energy. However, Microsoft joins the growing ranks of firms such as Google, Ikea, and Walmart which have perpetually been investing in the renewable energy.

 

Microsoft announced on Monday that it will house one of its ongoing data centers with large scale electricity sourced from a Texas wind farm. The company is willing to buy all the output from the 110MW wind farm for about 20 years. This desired project is to be built by RES Americas whereby, the electricity will be sent into a local grid that serves a Microsoft data center in San Antonio. The construction of this project is set to start next year and is further dated to be completed in 2015. 

 

For years, the more popular trend for businesses to buy renewable-energy credits has been an association with the renewable-energy generation projects instead of directly investing in those projects. It is seen that buying the credits is a much feasible option because it does not require any business foundations to sign long-term power contracts or commit to substantial capital and time to build its own solar-power projects. 

 

Nonetheless, as the wind and solar markets grows rapidly, the cost of renewable energy projects and the cost of building these projects have steeply declined. According to the Lawrence Berkeley National Laboratory report, in 2012, the average long-term cost of wind power to U.S. utilities priced at $40 per megawatt-hour, from a figure of $70 per megawatt-hour in 2009.

 

Owning wind farms or buying wind power represents a strong commitment to fight against the ever-changing climatic conditions, rather than simply buying the credits. However, the marketing benefit of investing in renewable energy sources remains steady and strong. Nevertheless, both the approaches are beneficial as they provide long-term capital growth for the renewable energy market. 

 

In most of the cases, these aspects help companies reduce their utility bills and in turn generate hefty profits in the long run. 

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