RWE signs two 15-year PPAs with Microsoft for the supply of clean energy

RWE, a leading renewable energy producer, has signed two 15-year power purchase agreements (PPAs) with Microsoft Corporation.

Under the PPAs, Microsoft will purchase clean electricity from two new RWE onshore wind farms in Texas.

The foundation stone was laid for the RWE Peyton Creek II onshore wind farm and the Lane City project. The combined capacity of both onshore wind projects is 446 megawatts (MW).

Andrew Flanagan, CEO of RWE Clean Energy, said: “At RWE, we are excited to work with Microsoft to deliver the clean electricity needed to achieve its sustainability goals.”

RWE says it has brought together leading renewable energy companies Vestas, Wanzek Construction, MasTec Renewables and RES, a global renewable energy solutions company, to build the Peyton Creek II and Lane City onshore wind farms.

RWE will use 4.5 MW V163 turbines from Vestas North America. RWE has retained Wanzek and RES to manage construction activities at Peyton Creek II and Lane City on RWE’s behalf.

Construction of the Peyton Creek Wind Complex is underway. The 243 MW project is located near RWE’s Peyton Creek I wind farm in Bay City, Texas, which has been operational since March 2020. Construction on the Lane City project will begin this summer. It has a capacity of 203 MW.

Texas is the largest RWE market in the U.S., with 33 renewable energy projects with a total installed capacity of 4.3 GW, enough to power 2.76 million homes annually. RWE’s share in renewable energy in Texas will increase to 4.8 GW, strengthening its position in this part of the ERCOT market. This will increase RWE’s current U.S. renewables portfolio of 9.3 GW across wind, solar and batteries.

Both Peyton Creek II and Lane City are expected to create 250 to 300 jobs during construction and 20 full-time positions once operational.

In addition, Peyton Creek II will contribute approximately $300 million to the local tax base in Matagorda County, and Lane City will contribute $300 million to the local tax base in Wharton County, RWE reported.