Cap and Trade – In chaos, lies opportunity by Doug Mohney

Views and Opinions on Green IT (Jul 1 2009) Cap and Trade

1. 

   While the U.S. House of Representatives passed a bill last week containing carbon cap-and-trade measures, there's a long way to go before such measures will be passed. The real question is how can data center operators find advantages now?

   With the ink barely dry, numerous groups are gearing up to fight for modifications and outright killing the legislation in the Senate this year. However, regardless of the outcome of this bill, legislative efforts to curb and reduce greenhouse gases aren't going to go away. 

   It is likely that your utility provider, regardless of how it generates power, is active looking for alternatives to reduce both power consumption and generate more green power.  For a utility that has lots of "dirty"/carbon-generating power, reducing power needs means less gases in the air and the potential of swapping out some dirty-but-cheap electricity for greener-but-more-expensive power.  

   And cap-and-trade isn't a game just for carbon-generating utilities. If you happen to be getting most to all of your power in "green" form, your supplier will also have an incentive for your data center to use less power under a cap-and-trade scheme – he can go sell the green power to someone with cap-and-trade credits, thereby freeing up the buyer's credits to be sold to someone else.

   Now would be the time to have a discussion with your utility to explore what sort of programs or options it might provide – rebates, cash, zero-interest loans – for you to implement energy saving measures at your existing data center(s).  Plant the seed now and see what happens. Today, your utility might think you're a little crazy.  Next year, it might be calling you back to negotiate.

   
   

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