Repsol has signed six renewables power purchase agreements (PPA) with Microsoft for a total capacity of 230MW in Spain.
The virtual PPAs, which all have 12-year terms, are linked to three wind farms and three solar plants in Spain and they will all be operational by December 2025.
This deal adds to existing PPAs which are part of a partnership announced in 2021, now reaching an overall total of 320MW of installed capacity.
Repsol is expanding its renewable power business to reach between 9000MW and 10,000MW of installed capacity by 2027.
Microsoft has announced that it will source 100% 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.
Joao Costeira, executive managing Director of Low Carbon Generation at Repsol, said: “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 decarbonisation.”
Repsol will invest between €3bn and €4bn net in the development of its project portfolio through 2027 to achieve its growth objectives.
Of the 9000-10,000MW of capacity, 50% will be in the Iberian Peninsula and 30% in the United States, following the consolidation of the pipelines of developers Hecate and ConnectGen.
In addition, Repsol plans to expand its presence in Chile and Italy, with a combined installed capacity of 1500MW in 2027.