Repsol and Microsoft have finalized a significant agreement for a combined six long-term virtual power purchase agreements (VPPAs), marking a pivotal step in their shared commitment to reducing carbon emissions. These 12-year supply agreements are linked to three wind farms and three solar plants in Spain, collectively boasting a total installed capacity of 230 MW. The facilities are expected to be operational by December 2025.
This deal adds to existing power purchase agreements established as part of a partnership announced in 2021, bringing the overall total of installed capacity between the two companies to 320 MW.
Both Repsol and Microsoft have set ambitious targets for reducing carbon emissions. Repsol aims to achieve zero net emissions by 2050 and plans to expand its renewable power business to reach between 9,000 MW and 10,000 MW of installed capacity by 2027. Microsoft, on the other hand, has committed to sourcing 100% of its energy supply from renewable sources by 2025.
The strategic collaboration between Repsol and Microsoft extends beyond renewable energy, encompassing efforts to accelerate Repsol’s digital transformation and the global energy transition. Together, the companies are co-innovating to develop new AI-powered digital solutions. Repsol also provides Microsoft with renewable energy in Spain and is expanding its use of Microsoft cloud solutions to power its operations, including a renewed commitment to the Azure cloud platform.
João Costeira, Executive Managing Director of Low Carbon Generation at Repsol, emphasized the significance of the agreement: “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 plans to invest between €3 and €4 billion net in the development of its project portfolio through 2027 to achieve its growth objectives. The company aims to have 50% of the 9,000-10,000 MW installed in the Iberian Peninsula and 30% in the United States, following the consolidation of pipelines from developers Hecate and ConnectGen. Additionally, Repsol plans to expand its presence in Chile and Italy, targeting a combined installed capacity of 1,500 MW in 2027.
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