Repsol and Microsoft sign 230 MW renewable energy deal with six VPPAs, accelerating Spain’s green transition

Repsol and Microsoft have finalized a significant agreement on a combined six long-term Virtual Power Purchase Agreements (VPPA), a key step in their joint commitment to reducing greenhouse gas emissions. These 12-year supply agreements are linked to three wind farms and three solar PV plants in Spain, which together boast a total installed capacity of 230 MW. The facilities are scheduled to be put into operation in December 2025.

This transaction complements existing power purchase agreements entered into under the partnership announced in 2021, bringing the total installed capacity between the two companies to 320 MW.

Both Repsol and Microsoft have set ambitious targets for reducing greenhouse gas emissions. Repsol aims to achieve net zero emissions by 2050 and plans to expand its renewable energy business to reach between 9,000 MW and 10,000 MW of installed capacity by 2027. On the other hand, Microsoft has committed to sourcing 100% of its energy supply from renewable sources by 2025.

The strategic collaboration between Repsol and Microsoft goes beyond renewable energy and includes efforts to accelerate Repsol’s digital transformation and the global energy transition. Companies are innovating together to develop new digital solutions powered by artificial intelligence. Repsol also supplies 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, Managing Director of Low Carbon Generation at Repsol, highlighted the importance of the agreement: “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 development goals, Repsol plans to invest between EUR 3 and 4 billion net in the development of its project portfolio until 2027. The company aims to install 50% of the 9,000-10,000 MW of capacity in the Iberian Peninsula and 30% in the United States, after consolidating pipelines from developers Hecate and ConnectGen. Additionally, Repsol plans to expand its presence in Chile and Italy, reaching a total installed capacity of 1,500 MW in 2027.

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