Repsol will supply renewable electricity to Microsoft after reaching an agreement for a total of six long-term virtual electricity purchase agreements (VPPA). These 12-year supply agreements are linked to three wind farms and three solar plants in Spain with a total installed capacity of 230 MW and which will be operational in December 2025. This operation is in addition to the energy purchase and sale agreements already existing between both companies as part of a partnership announced in 2021 and thus amounting to a total of 320 MW of installed capacity.
Microsoft and Repsol share similar ambitions about the importance of reducing carbon emissions. Repsol was the first company in its sector to announce a goal of net zero emissions by 2050 and is expanding its renewable energy business to reach between 9,000 MW and 10,000 MW of installed capacity in 2027. Microsoft has announced that it will obtain 100% of its energy supply from renewable energies by 2025.
Repsol and Microsoft share a strategic collaboration focused on accelerating Repsol’s digital transformation and the global energy transition. The companies are co-innovating to develop new digital solutions powered by artificial intelligence and, as part of a long-term cooperation, Repsol is providing Microsoft with renewable energy in Spain. In addition, Repsol is expanding its use of Microsoft cloud solutions to boost its operations, including its commitment to the Azure platform.
According to João Costeira, General Director of Low Carbon Generation at Repsol: “This agreement with Microsoft, a strategic partner for us, highlights the importance of renewable energies for the digital revolution in which we are deeply involved and also demonstrates the commitment of Repsol with decarbonization.”
Repsol will invest between 3,000 and 4,000 million euros net in the development of its portfolio of renewable projects until 2027 to achieve its growth objectives. Of the 9,000 MW-10,000 MW installed, 50% will be in the Iberian Peninsula and 30% in the United States, after the consolidation of the Hecate and ConnectGen projects. Repsol plans to expand its presence in Chile and Italy, with a combined installed capacity there of 1,500 MW in 2027.
