Goldman Sachs has signed a long-term power purchase agreement which will enable the investment and development of a 68-MW wind farm in Pennsylvania.
The Goldman Sachs Group has taken an important step toward its commitment to 100% renewable energy for the firm’s global electricity needs. They have signed a long-term Power Purchase Agreement (PPA) with a subsidiary of NextEra Energy Resources, LLC, which will add new renewable energy capacity to the electricity grid.
The agreement will enable the investment and development of a new 68-MW wind project in Pennsylvania and is anticipated to facilitate up to 150 construction jobs and result in the reduction of more than 200,000 tons of greenhouse gas emissions per annum once operational.
“We are committed to being a leader in the development of renewable energy,” said Lloyd C. Blankfein, chairman and chief executive officer of Goldman Sachs. “By enabling this new wind project to come online, the agreement will help grow the renewable grid and contribute to the momentum behind a lower carbon economy.”
The PPA is a collaborative effort between Goldman Sachs’ commodities trading group (J. Aron) and its Corporate Services and Real Estate department. J. Aron is acting as an intermediary for the project, providing commodity risk management and commercial expertise for the transaction.
“By leveraging the firm’s intellectual capital and J. Aron’s expertise in power markets, we were able to structure the agreement in a way that allowed us to meet our operational and sustainability goals through a creative market-based solution,” said Blankfein.
Renewable energy accounted for the majority of new installed global energy capacity in 2016, according to the International Energy Agency, and Power Purchase Agreements by corporates in the U.S. have totaled close to 6 GW since 2015.
“We are pleased to advance our partnership with Goldman Sachs and help it achieve its renewable energy goals,” said Armando Pimentel, president and chief executive officer of NextEra Energy Resources, the world’s largest generator of renewable energy from the wind and the sun. “This partnership demonstrates how forward-looking companies like Goldman are re-thinking their energy use, and leading the way with their investment in low-cost, clean energy that is both good for the country and good for their customers.”
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