Microsoft has signed a number of Power Purchase Agreements (PPAs) to procure renewable energy across Europe.
The cloud company is to procure wind and solar energy in Sweden and Denmark from European Energy. It will procure the output of six wind and solar sites in Spain from Repsol.
Microsoft signs deal with European Energy
European Energy has entered several long-term power purchasing agreements (PPAs) with Microsoft. The renewable energy will be produced by a portfolio of wind and solar assets in Sweden and Denmark.
Microsoft will offtake from 180.6MW worth of projects, including the region’s first utility-scale hybrid wind and solar project. The agreements will deliver over 3.6 TWh over the contract period.
“We are excited that Microsoft has committed itself to driving forward the green transition. The roll-out of renewable power is dependent on major stakeholders dedicating themselves to buying the renewable electricity that is being produced from these assets, which require substantial capital investments,” said Jens-Peter Zink, deputy CEO of European Energy.
Adrian Anderson, general manager of renewables, carbon-free energy, and carbon dioxide removal at Microsoft, added: “We’re pleased the projects we contracted with European Energy have achieved commercial operation – directly contributing to our sustainability goals which includes a 100 percent. renewable energy coverage for the company’s operations by the end of 2025.”
Founded in 2004, Denmark-based European Energy develops and operates wind and solar farms, totaling 3GW of capacity to date. Mitsubishi HC Capital owns around 20 percent of the company.
Microsoft signs PPA with Repsol
In Spain, Microsoft has signed six 12-year virtual power purchase agreements (VPPAs) associated with three wind farms and three solar plants in Spain with a total installed capacity of 230MW that will be operational by December 2025.
Repsol said the deal adds to PPA deals signed between the companies in 2021, taking the total contracted capacity to 320MW.
Repsol is also a Microsoft Azure customer, and the companies have partnered to develop digital solutions.
João Costeira, executive managing director of low carbon generation at Repsol, said: "This agreement with Microsoft, a strategic partner, highlights the importance of renewable energy for the digital revolution in which we are deeply involved, and it also demonstrates Repsol's commitment to decarbonization.”
Repsol is a Spanish multinational energy and petrochemical company based in Madrid. The company said it aims to will invest €3-4 billion through to 2027 in developing its portfolio, which will reach 9,000-10,000MW of installed capacity.
The capacity will be split 50:30 between the Iberian Peninsula and the United States, and the company plans to expand its presence in Chile and Italy, reaching 1,500MW combined capacity there.
Microsoft has more than 5GW of data center capacity in operation and expects to add 1GW of server power over the next six months, followed by 1.5GW of new data center capacity in the first half of 2025.
The company is already one of the world’s largest corporate buyers of renewable energy, and in a job posting said it has more than 20GW of renewable energy under contract. The company has since told DCD it has brought 34GW of capacity to the grid.
Microsoft recently signed a major renewable energy framework deal with Brookfield to invest an estimated $10 billion in renewable electricity projects to be developed by Brookfield Asset Management.
2024 has seen the company sign PPAs in Ohio, Ireland, and France, as well as two PPAs in Texas totaling more than 800MW with Leeward Renewable Energy and RWE.
It recently put out a PPA request for innovative energy technologies alongside Google and Nucor, and made multiple carbon capture and removal investments this year.
