Why Apple just made its first investment in wind power

Apple’s latest deal in China has nothing to do with smartphones. The tech giant just made its first major investment in the Chinese wind power industry, allowing the world’s most populated country to help it achieve its goal of getting 100% of its energy from renewable sources. 

The company struck a deal early this month to buy a 30% stake in three subsidiaries of Goldwind, China’s largest wind-turbine manufacturer. Although there’s no word on how much money is involved, it’s Apple’s greatest clean energy project to date and the first of its kind in the wind power sector.

According to the companies, the investments in wind turbines will collectively yield 285 MW of clean energy, and the power generated will be directed toward Apple’s supply chain manufacturers. Many Apple products are made in China, and the country accounts for about one-fifth of the company’s sales.

Last year, Apple announced a series of solar projects, including one in the mountains of Sichuan Province, where solar panels were designed so that the local yak population could graze among them. The 40-MW project generates enough power to cover all of its offices and stores in the country. It's also pushing its Chinese suppliers to use more clean energy.

China provides plenty of opportunity for such initiatives. The country is the world's largest investor in renewable energy, investing a record-breaking $102.9 billion into wind, solar, and other projects in 2015, according to a U.N. report published in May.

As with other companies, Apple uses power purchase agreements to buy renewable energy from wind or solar energy developers, and then sells the energy back to the grid at a wholesale price. In exchange, Apple receives renewable energy certificates, which it applies to the non-renewable energy it uses to power its operations.

Other major tech giants such as Facebook and Google are also hopping on board the 100% renewable energy bandwagon. Earlier this month, Google announced that it will hit the renewable energy milestone in 2017, and Microsoft claims it's been 100% powered by renewable energy since 2014.

Source: China Daily