Apple Inc. is producing a lot of electricity through its hundreds of megawatts of solar projects. The energy produced is in bulk, and thus, for selling the excess electricity, it has created a subsidiary by the name Apple Energy LLC that filed a request with the Federal Energy Regulatory Commission to sell power on wholesale markets across the US, says a report from 9to5mac.
Apple power could help Apple’s car project
The clean energy Apple produces is used to power all its data centers along with most of its stores and corporate offices. Additionally, the firm has made strategic investments in geothermal power, hydroelectric and biogas, and hopes to buy green energy off the grid when it won’t be able to generate its own power.
Apple Inc. claims the energy it generates is sufficient to cover 93% of its energy usage worldwide. However, it is very much possible that the firm is building power generation capacity that exceeds its needs, in anticipation of the future growth. Selling off the excess power to power firm also helps it to recoup costs. And, they in turn, sell it to end customers.
Can we have something else coming out of the subsidiary ‘Apple Energy’ company? Apple’s electric car project is in development as of now, and in a recent report, its interest in the charging stations for refueling their future EV has been highlighted, suggesting the possibility of this project being at the focus of Apple’s energy experts in the future.
Apple to sell at retail rate?
Private companies sell their excess power, but they are able to sell it to energy firm only as of now. Most often they have to sell at wholesale rates, but this varies from state to state. Opportunity exists for Apple to benefit by selling directly to the end-users at market rates. In other words, it means they can benefit from selling excess power at retail prices.
Currently, the firms such as Green Mountain Power sell green renewable energy to homeowners all over the US, and soon we might see Apple doing this. The iPhone maker has told the FERC that it meets the legal criteria for selling electricity at market rates because it is not a major player in the energy business, and thus, does not have power to influence electricity prices, the report says. The iPhone maker made the filing on 6th June, and has requested permission to begin within 60 days from the date.
Apple Inc. , which generated a revenue more than $233bn in fiscal 2015, is unlikely to turn power generation into a meaningful revenue stream, but this investment will definitely get something for it. In order to finance clean energy projects, the firm issued $1.5bn in green bonds earlier this year.
On Thursday, Apple shares closed up 0.72% at $99.65. Year to date, the stock is down over 7% while in the last one-year, it is down almost 23%. The stock has a 52-week high of $132.97 and a 52-week low of $89.47.