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Microsoft signs its largest PPAs outside US, agrees to off-take 900 MW of power in Ireland

image credit: Enerdatics
Mohit Kaul's picture
Founder, Enerdatics

Building Enerdatics. Leadership experience in a high growth SaaS company and secured a successful exit. A natural leader who cares about creating value for all stakeholders. Extensive experience...

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  • Nov 28, 2022
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The company signed a corporate power purchase agreement (PPA) to off-take 366 MW from Statkraft, marking the Norwegian power company’s first PPA in Ireland. Microsoft has also entered into a PPA with Irish renewables companies Power Capital Renewable Energy and Energia Group for the supply of 534 MW. The majority of the projects linked to the PPAs are under development and will help the tech giant power its data centers in the country with 100% renewable energy by 2025. By 2030, Microsoft aims to have 100% of its electricity consumption, matched on an hourly basis by zero-carbon energy purchases. By 2050, the company targets to remove its historical emissions, since its founding in 1975.

Microsoft claims to be the second largest corporate buyer of renewable energy in 2021, with 5.8 GW of new PPAs signed across 10 countries globally, during the year. In total, the company has signed PPAs that will contribute to bringing more than 10 GW of new renewable energy capacity online.

Technology and telecommunications companies have historically been one of the major contributors to global clean power procurement, coming second only to industrial conglomerates. So far in 2022, the tech/telecom segment has accounted for 36% of renewable energy capacity contracted across the world, at more than 11 GW. Amazon, one of the largest corporate buyers of renewable electricity, reached the milestone of powering 85% of its operations with renewable energy during the year and announced 18 new projects across 18 countries. And as per Google’s latest climate action report (published in Nov '22), the company signed more than sixty PPAs globally during 2010-2021, for more than 7 GW of renewable energy. As of 2021, Google had achieved five consecutive years of 100% renewable energy matching, on an annual basis. The company has also committed ~$6bn to purchase power from wind and solar projects globally through 2040. Meanwhile, in April 2021, Facebook claimed that it had reduced its GHG emissions by 94% in the preceding three years, and its operations are supported by 100% renewable energy. The company is now working towards reaching net zero emissions across its entire supply chain by 2030. 

PS: The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation. 

Discussions
Sanskruti  Rajore's picture
Sanskruti Rajore on Nov 28, 2022

Corporate PPAs are likely to become more popular in the Irish market. There is currently 2.5 GW of installed capacity of onshore wind here, and this is set to grow continually. Development is supported by the EU and Ireland government policy, including their 2020 targets under Directive 2009/28, and the EU’s Climate and Energy Framework 2030.  Accordingly, there should be a steady pipeline of renewable energy projects being developed in Ireland for the foreseeable future.

Kshitij NR's picture
Kshitij NR on Nov 28, 2022

Microsoft’s datacenters in  hashtag#Ireland  use batteries to maintain an uninterruptible power supply. EirGrid Group, the transmission system operator in Ireland, runs a market for grid services that prioritizes non-carbon-emitting solutions. Microsoft is participating in this market through a collaboration with Enel X, an energy services and solutions provider that aggregates industrial and commercial energy consumers into virtual power plants.

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