Repsol will supply renewable energy to Microsoft under VPPAs

Repsol has agreed to provide Microsoft with renewable energy under six long-term virtual power purchase agreements (VPPAs).

The contracts concluded for 12 years concern three wind farms and three solar power plants in Spain, which are to be launched by December 2025 and whose total installed capacity is 230 MW,

The transactions build on a partnership launched in 2021, bringing total installed capacity to 320 MW.

Both companies have expressed their commitment to reducing greenhouse gas emissions, with Repsol aiming for net zero emissions by 2050 and plans to expand its renewable energy business to reach an installed capacity of 9 GW to 10 GW by 2027. Microsoft has set itself the goal of obtaining all its energy needs from renewable sources by 2025.

Repsol and Microsoft’s cooperation goes beyond energy supplies. It includes a strategic partnership to accelerate Repsol’s digital transformation and contribute to the global energy transition. Together they develop digital solutions based on artificial intelligence. Repsol is also increasing its use of Microsoft cloud solutions, including moving away from the Azure cloud platform again, to increase its operational efficiency.

Repsol Executive Director for Low Carbon Manufacturing, João Costeira, said: “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 support its development goals, Repsol plans to invest between €3 billion ($3.3 billion) and €4 billion net in the development of its project portfolio through 2027.

The company’s expansion strategy includes a significant presence in the Iberian Peninsula, accounting for 50% of total installed capacity, and 30% in the US, following the integration of the Hecate and ConnectGen pipelines.

Repsol also plans to expand its operations in Chile and Italy, aiming to reach a total installed capacity of 1.5 GW by 2027.

In April 2024, it completed the Frye Solar project, which was the largest plant of its type in the US to date.

“Repsol will supply Microsoft with renewable energy under VPPAs” was originally created and published by Power Technology, a brand of GlobalData.

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