Repsol and Microsoft have expanded their long-standing partnership by signing six new 12-year virtual power purchase agreements (VPPAs) in Spain. These agreements cover three wind farms and three solar plants with a combined capacity of 230 MW.
Microsoft’s 2025 Goal
These renewable energy projects are expected to be operational by December 2025, bringing the companies’ total contracted capacity to 320 MW since their initial partnership in 2021.
Both companies prioritize reducing carbon emissions. A pioneer in its sector, Repsol aims for net-zero emissions by 2050 and plans to expand its renewable energy capacity to between 9,000 and 10,000 MW by 2027. Microsoft, meanwhile, has committed to sourcing all its energy from renewable sources by 2025.
A Long-Term Partnership
The collaboration between Repsol and Microsoft aims to accelerate Repsol’s digital transformation as well as the global energy transition. The partners are jointly developing AI-powered digital solutions, and Repsol is also expanding its use of Microsoft cloud services—notably Azure—to support its operations.
João Costeira, Executive Managing Director of Low Carbon Generation at Repsol, remarked, “This deal with Microsoft — a major partner — emphasises the importance of renewable energy in the digital revolution, in which we are heavily invested, and it underscores Repsol’s commitment to decarbonisation.”
To develop its project portfolio and achieve its growth targets, Repsol intends to invest between €3 and €4 billion net by 2027. Of the planned 9,000-10,000 MW of installed capacity, half will be located on the Iberian Peninsula and 30% in the United States. Repsol also aims to expand its presence in Chile and Italy, targeting a combined installed capacity of 1,500 MW by 2027.
Repsol’s Commitment to Renewable Energy
Repsol recently completed its largest solar project in the US, the Frye Solar facility near Kress in Swisher County, Texas. The facility has an installed capacity of 637 MW, with 570 MW currently operational, and is powered by one million solar panels. The company has also secured a long-term Power Purchase Agreement (PPA) for 89% of the solar plant’s output, ensuring stable returns on the asset.
The Frye Solar Facility
Federico Toro, Chief Operating Officer of Repsol’s low-carbon generation in North America, highlighted the significance of this milestone, stating, “Repsol sees the completion of our largest US renewable facility to date as a major step toward our goal of becoming a net-zero emissions company by 2050. Our growth ambitions in this country are substantial.”
Repsol’s renewable capacity in Texas now stands at 2.09 GW, which includes the 629 MW Outpost facility and the 825 MW Pinnington plant. The company also operates the Jicarilla 1 and 2 solar power plants in New Mexico, totaling 125 MW with an additional 20 MW of battery storage.
The expanded partnership underscores a shared commitment to renewable energy and carbon reduction. This collaboration not only supports Microsoft’s goal of sourcing 100% renewable energy by 2025 but also reinforces the crucial role of renewables in the digital transformation. Repsol’s strategic investments and growing capacity in Spain are pivotal in achieving these sustainability targets.
