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Alphabet's Google to Buy Wind Energy, Focuses on Renewables

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In keeping with its commitment to secure clean and renewable electricity, Alphabet Inc.’s (GOOGL - Free Report) division, Google recently entered into a 10-year deal to buy renewable energy.

The company will buy clean energy to power one of its data centers in Finland from three new wind farms that are being built in the country.

The latest deal is inline with the company’s strategy to promote the usage of renewable energy in a bid to keep costs under control and reduce carbon emission.

Coming to price performance, Alphabet’s shares have returned 26.7% in the past 12 months against the industry’s loss of 1.9%.

 

More on the Headlines

Solar and wind are gradually transforming the way energy is produced and consumed, driving the ongoing global energy transition. With regulatory authorities encouraging renewable energy generation, the dependence on fossil fuels is gradually declining.

Reportedly, power generated from the three farms, which will be built by renewable energy developers Neoen of France and Germany's CPC and WPD, is estimated to be 190 megawatts (MW).

This agreement is another step toward Google’s long-term goal of purchasing more green energy.

Google’s Go Green Initiatives

Google is one of the many big companies that is undergoing significant investments in renewable energy in order to keep a check on its operating expenses along with making efforts to keep the climate clean.

It has been aggressively investing to source renewable energy for its operations. The company has set an ambitious target to fuel 100% of its global energy needs through renewable resources like solar, geothermal & wind power, biogas and hydro power.

Also, Google has completed a few large-scale Power Purchase Agreements (PPAs) to buy renewable energy in the United States. Other companies like Apple, Microsoft, Amazon and Walmart, among others, are also seeking greater use of renewable energy in their operations.

Per the International Renewable Energy Agency, the number of new corporate PPAs, primarily wind and solar, reached a record with more than 5 gigawatt contracted in 2017.

Undoubtedly, going green will help big companies to save on costs while helping to protect the environment at the same time. Also, it is expected to help reduce global warming and fossil fuel consumption.

Alphabet Inc. Price and Consensus

 

Alphabet Inc. Price and Consensus | Alphabet Inc. Quote

Zacks Rank and Stocks to Consider

Currently, Alphabet carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are eXp World Holdings, Inc. (EXPI - Free Report) ), Infineon Technologies AG (IFNNY - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for eXp World Holding, Infineon Technologies and Rambus is currently projected to be 10%, 7.5% and 10%, respectively.

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