Google has signed its first corporate power purchase agreements (PPAs) for geothermal energy in Taiwan.

These agreements are the first of their kind in the Asia-Pacific region for the company. The projects, developed by Baseload Capital, aim to add 10 megawatts of continuous geothermal power to Taiwan’s energy grid.

This initiative supports Taiwan’s goal of installing 6 gigawatts of geothermal capacity by 2050 and builds on Google’s renewable energy efforts in the country.

Taiwan’s location along the Pacific Ring of Fire offers significant geothermal resources. This makes it an ideal area for such developments.

🔗 Source: Google

🧠 Food for thought

1️⃣ Taiwan’s untapped geothermal potential becomes strategic in renewable transition

Taiwan sits on substantial geothermal resources estimated at 33,640 MW due to its position along the Pacific Ring of Fire, yet this potential has remained largely untapped until recently 1.

The country has set an ambitious goal to install 6 GW of geothermal capacity by 2050 as part of its broader renewable energy transition, making Google’s early entrance particularly strategic.

This development comes as Taiwan’s renewable energy generation reached 282.1 TWh in 2023, with renewables accounting for just 9.5% of the mix 2, highlighting significant room for growth beyond the current solar and wind focus.

Taiwan’s government aims to position the country as the “Asia-Pacific Green Energy Hub” with targets of reaching 20% renewable energy by 2026 3, creating a supportive policy environment for pioneering projects like this geothermal PPA.

The geothermal push complements Taiwan’s other renewable targets, including 20 GW of solar and 6.5 GW of wind power by 2026 3, diversifying the country’s renewable portfolio with baseload power that operates continuously regardless of weather conditions.

2️⃣ Corporate PPAs reshape Taiwan’s energy landscape following market liberalization

Google’s geothermal PPA represents the evolution of Taiwan’s corporate renewable energy market that began with the 2017 amendment of Taiwan’s Electricity Act, which broke the monopoly of Taiwan Power Company and enabled direct renewable energy purchases 4.

The growth of corporate PPAs has been remarkable, with renewable energy trading reaching 1.7 TWh in 2023 5 and showing a 30% increase in green electricity traded via Corporate Power Purchase Agreements in 2024 2.

Taiwan’s introduction of the renewable energy credit (T-REC) scheme in 2018 further simplified corporate sustainability efforts and stimulated renewable energy additions by providing multiple procurement routes for non-utility buyers 6.