Repsol SA

06/11/2024 | Press release | Distributed by Public on 06/11/2024 07:18

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

Repsol will supply Microsoft renewable electricity after reaching an agreement for a combined six long-term virtual power purchase agreements (VPPAs). 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 that will be operational by December 2025. This deal adds to existing power purchase agreements which are part of a partnership announced in 2021, now reaching an overall total of 320MW of installed capacity.

Microsoft and Repsol share similar ambitions on the importance of reducing carbon emissions. Repsol was the first company in its sector to announce a target to achieve zero net emissions by 2050 and is expanding its renewable power business to reach between 9,000 MW and 10,000 MW of installed capacity by 2027. Microsoft has announced that it will source 100 percent of its energy supply from renewable energy 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 build new AI-powered digital solutions and, as part of a long-term cooperation, Repsol provides Microsoft with renewable energy in Spain. Additionally, Repsol is expanding its use of Microsoft cloud solutions to power its operations, including recommitting to the Azure cloud platform.

According to João Costeira, Executive Managing Director of Low Carbon Generation at Repsol: "This agreement with Microsoft, a strategic partner, highlights the importance of renewable energy for the digital revolution in which we are deeply involved, and it also demonstrates Repsol's commitment to decarbonization."

Repsol will invest between €3 and €4 billion net in the development of its project portfolio through 2027 to achieve its growth objectives. Of the 9,000-10,000 MW installed, 50% will be in the Iberian Peninsula and 30% in the United States, following the consolidation of the pipelines of developers Hecate and ConnectGen. Repsol plans to expand its presence in Chile and Italy, with a combined installed capacity there of 1,500 MW in 2027.