Microsoft Signs 15-Year Renewable Energy Agreements with RWE in Texas
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German power producer RWE announced that it has signed two 15-year power purchase agreements (PPAs) with Microsoft for the purchase of renewable energy from two new Texas-based onshore wind farms, with a combined capacity of 446 MW.
The two new renewable energy projects include RWE Peyton Creek II and the Lane City project. Peyton Creek II, currently under construction, is near RWE’s 243 MW Peyton Creek I wind farm in Bay City, Texas, which has been in operation since March 2020. The 200 MW Lane City project will begin construction this summer.
According to RWE, the new projects will add to the company’s renewables portfolio in the U.S. of 9.3 GW including wind, solar and batteries. RWE recently raised $2 billion through its inaugural U.S. green bond issuance, and the company has announced plans to invest €55 billion worldwide by 2030 in renewable energy, batteries, flexible generation and hydrogen projects, including around €20 billion anticipated to be invested in the U.S.
The announcement will also support Microsoft’s clean energy goals. In 2021, Microsoft launched a “100/100/0 clean energy goal,” with the company targeting having 100% of its electricity consumption, 100% percent of the time, matched by purchases from zero carbon energy sources by 2030, adding to its prior commitment to use 100% renewable energy in its buildings and datacenters globally by 2025. Microsoft has also committed to become carbon negative by 2030, and to cover 100% of its electricity consumption in its buildings and datacenters globally with renewable energy by 2025.
The new PPAs mark the latest in a series of clean energy deals for Microsoft, including a 5-year global renewable energy framework agreement with Brookfield, for the development of more than 10.5 GW of new clean energy capacity in the U.S. and Europe earlier this month, and 400 MW PPAs in Texas in March with Leeward Renewable Energy.
Andrew Flanagan, CEO of RWE Clean Energy, said:
“As RWE, we are excited to be working with Microsoft to provide the clean electricity they need to achieve their sustainability goals. Together, we’re united in our efforts to deliver a clean energy future. As a growing green business, we are committed to driving our renewable targets, supporting local communities grow sustainably.”