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

published on 28 November 2022
Corporate PPA. Renewable Energy PPA. Renewable Energy Projects. Microsoft. Statkraft. Ireland. Europe. Power Capital Renewable Energy. Energia Group (2)-fw8u7

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. 

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. 

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