Repsol signs a long-term renewable energy purchase agreement with Microsoft

Repsol will supply renewable energy to Microsoft after reaching agreement on a combined six long-term Virtual Power Purchase Agreements (VPPA). These 12-year supply agreements are linked to three wind farms and three solar power plants in Spain with a total installed capacity of 230 MW, which is expected to be operational by December 2025. This agreement is in addition to the existing power purchase agreements that form part of the partnership announced in 2021, currently reaching a total of 320 MW of installed capacity.

Microsoft and Repsol have similar ambitions regarding the importance of reducing greenhouse gas emissions. Repsol was the first company in its industry to announce a target to achieve net zero emissions by 2050 and is expanding its renewable energy business to reach 9,000 MW to 10,000 MW of installed capacity by 2027. Microsoft announced that it will source 100% of energy supply from renewable sources by 2025

Repsol and Microsoft are collaborating strategically, focusing on accelerating Repsol’s digital transformation and the global energy transition. The companies are innovating together to create new digital solutions powered by AI, and as part of a long-term collaboration, Repsol is providing Microsoft with renewable energy in Spain. Additionally, Repsol is expanding its use of Microsoft cloud solutions to support its operations, including moving back to the Azure cloud platform.

According to João Costeira, Managing Director of Low Carbon Manufacturing at Repsol: “This agreement with Microsoft, a strategic partner, underlines the importance of renewable energy for the digital revolution in which we are deeply committed, and also demonstrates Repsol’s commitment to decarbonization.”

To achieve its growth targets, Repsol will invest between EUR 3 and 4 billion net in the development of its project portfolio until 2027. Of the 9,000-10,000 MW installed, 50% will be located in the Iberian Peninsula and 30% in the United States, following the consolidation of pipelines from developers Hecate and ConnectGen. Repsol plans to expand its presence in Chile and Italy, where in 2027 the total installed capacity will be 1,500 MW.