Microsoft Seals Solar PPA With Repsol for its Operations in Spain

In a significant expansion of their ongoing collaboration, Microsoft and Spanish energy company Repsol have finalized six new virtual power purchase agreements (VPPAs). The 12-year contracts will supply Microsoft’s Spanish operations with 230 MW of renewable energy sourced from a portfolio of three wind farms and three solar plants.

Announced around June 11, 2024, this deal marks a substantial step forward in both companies’ sustainability journeys. The projects covered by the agreements are slated to become operational by December 2025. This new capacity builds upon a partnership initiated in 2021, bringing the total contracted renewable power between the two giants to 320 MW. The move directly supports Microsoft’s ambitious goal to power its global operations with 100% renewable energy by 2025.

“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,” stated João Costeira, Executive Managing Director of Low Carbon Generation at Repsol. The partnership extends beyond energy procurement, aiming to accelerate Repsol’s digital transformation through the joint development of AI-powered solutions and expanded use of Microsoft’s cloud services, particularly Azure.

For Repsol, this agreement is a key component of its broader strategy to reduce carbon emissions and achieve net-zero status by 2050. The company plans to deploy between €3 and €4 billion in strategic investments by 2027 to grow its renewable capacity to between 9,000 and 10,000 MW. This expansion is geographically focused, with half the capacity planned for the Iberian Peninsula, 30% in the United States, and a combined 1,500 MW targeted for Chile and Italy.

Repsol’s global renewable footprint is already significant. The company recently completed its largest U.S. solar project, the 637 MW Frye Solar facility in Texas, which utilizes one million solar panels. “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,” commented Federico Toro, COO of Repsol’s low-carbon generation in North America. This latest PPA with Microsoft further solidifies the critical role of corporate partnerships in driving the global energy transition.

Microsoft Seals Solar PPA With Repsol for its Operations in Spain

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