Microsoft Virtual PPA Acquires 389 MW of EDP Renewables’ Solar Farms in Illinois, Texas
Microsoft will purchase nearly all of the power generation output generated by three new utility-scale projects developed by EDP Renewables North America.
The tech giant, which has long focused on decarbonization in its pursuit of energy, will acquire the equivalent of 389 MW of electricity and renewable energy credits through long-term virtual power purchase agreements (VPPAs). Customers rarely receive the projects’ electricity directly, but the VPPA helps fund construction and commissioning for the solar farms, and also serves as a clean energy offset to the company’s energy consumption.
EDP Renewables North America (EDPR NA) is delivering three projects totaling 400 MW. The project deliveries bring the total operational portfolio to five projects between the two companies in the U.S.
In Southern Illinois, EDPR NA commissioned the 140 MW Wolf Run Solar Project (Wolf Run) near Jacksonville and the 110 MW Hickory Solar Project (Hickory) near Jerseyville in November 2024. The 150 MW Cattlemen II Solar Project (Cattlemen II) located near Austin, Texas, was operational in December 2024.
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EDPR NA developed Hickory, and Microsoft agreed to purchase electricity and RECs. Hickory uses an Environmental Justice PPA (EJ PPA) developed by Microsoft and Volt Energy Utility (Volt Energy Utility), a minority-owned renewable energy developer.
"It's exciting when projects achieve commercial operations and begin generating clean energy in support of grid decarbonization," Kourtney Nelson, Senior Director of Renewable Energy Procurement at Microsoft, said in a statement. "We're pleased with EDPR NA and Volt Energy Utility's collaboration on Hickory and the positive impact the project will have with community grants and investing in future renewable energy leaders."
Through the EJ PPA, Hickory will contribute funding to help Sharing the Power Foundation provide financial assistance to organizations and causes ensuring equal access to clean air, water, and renewable energy, as well as offer availability to energy assistance programs; and opportunities to pursue workforce training in clean energy careers.
Wolf Run and Hickory have contributed $4.8 million to landowners, who lease a portion of their land to the projects, and investments to local governments through tax payments, for funding critical services, schools, road maintenance, and other local initiatives. The two Illinois projects created 500 construction jobs and 5 permanent jobs.
"The importance of ensuring benefits flowing from renewable energy development directly into communities has never been more important," added Sandhya Ganapathy, CEO, EDP Renewables North America. "Through these three additional projects, we're keeping our promise – and indeed the industry's promise – to contribute to the nation's growing energy demand and in that process invest in long-lasting economic growth of our communities."
Microsoft, which has announced its goal to offset 100% of its energy consumption with clean renewable project investment through PPAs by 2030, last year signed a five-year global deal with Brookfield Asset Management focused on developing close to 10.5 GW of renewable energy projects. The $10 billion PPA deal is considered the biggest corporate clean energy procurement agreement ever.
