Google and EDPR NA Distributed Generation LLC (EDPR NA DG), the distributed generation (DG) business unit of EDP Renewables North America (EDPR NA), announce the signing of a framework agreement supporting more than 80 distributed solar photovoltaic (PV) generation projects totaling 500 MWAC.
The agreement is part of an environmental justice program benefiting more than 25,000 families in low- and moderate-income communities, with a particular focus on projects in the PJM Interconnection service area, which stretches from New Jersey to Ohio. The first projects will be built in Ohio, where Google operates a data center campus in New Albany and a Google Cloud region in Columbus.
The ImpactREC™: A new renewable energy credit
The unprecedented deal with Google marks the largest sponsorship of a distributed solar development company in the U.S., according to data from S&P Global and BloombergNEF. The initiative, called the Clean Energy Financial Benefit Sharing Program, will be funded in part by Google’s purchase of a new renewable energy credit (REC) called ImpactREC™. The ImpactREC™, like other traditional RECs, is generated and eligible for the applicable compliance market. However, its creation includes additional covenants certifying direct community investment and direct benefit to low-income people.
The ImpactREC™ program offers similar economic benefits to community solar in jurisdictions that currently lack supportive legislation. The EDPR NA DG team, led by Christopher Rittenhouse and Adam Woda, has worked with Google over the past two years to design and develop the ImpactREC™ product and its supporting master agreement.
Reducing energy poverty
In addition to the purchase of ImpactREC™, the program includes the creation of a $12 million community impact fund. The fund focuses on initiatives to reduce energy poverty in the communities where the projects are built. Google and EDPR NA DG are committed to local social and economic justice as part of the transition to a sustainable future. “The partnership with Google paves the way for the creation of a new, business-led market segment focused on removing the typical barriers associated with rapid, distributed and equitable decarbonization of the energy system,” added Richard Dovere, chief investment officer of EDPR NA DG.
The initiative is made possible in part by the Inflation Reduction Act (IRA) passed in 2022, which includes historic tax incentives for home energy production and manufacturing. The ImpactREC™ leverages these incentives to provide direct investment in communities across the Midwest and Northeast and enable economic benefits for low-income communities.
