Google says it’s not buying the electricity directly from the project, and the returns are reason enough for the investment. Google and Citibank are using what they call a leveraged lease, and are purchasing part of the project, then leasing it back to Terra-Gen, who will manage and operate the project.
Mark down yet another clean power project Google plans to back. Tuesday morning, Google announced on its blog it’s providing $55 million for part of the construction of a 1.5 GW wind farm that is being built by Terra-Gen Power in Southern California’s Mojave Desert. Google’s financing will go toward a 102 MW section of the Alta Wind Energy Center, and Citibank has underwritten the equity for a major chunk of the rest.