Goldman Sachs Signs Long-Term Power Purchase Agreement to Spur Renewable Energy Growth and Jobs
NEW YORK, June 12, 2017 — Today, the Goldman Sachs Group, Inc. took an important step towards our commitment to 100 percent renewable energy for the firm’s global electricity needs. We 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 megawatt 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 US have totaled close to six gigawatts 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.”
Goldman Sachs is a member of the RE100 initiative as part of its commitment to increasing awareness and in support of global best practices for renewable energy procurement. RE100 includes 96 leading corporates committed to 100 percent renewable energy. We are also members of the Business Renewables Center, which seeks to accelerate corporate purchasing of renewable energy.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
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