'Journey to 100% renewable energy': Microsoft closes big solar PPA with Orsted in Texas

Software giant Microsoft has entered into an agreement with Danish utility Orsted to buy electricity from the 430MW ‘Old 300 Solar Center’ array in Fort Bend County in the US state of Texas via a power purchase agreement (PPA).

“On our journey to 100% renewable energy, we recognise that innovation and collaboration are fundamental in how we fight against climate change,” said Adrian Anderson, senior director for renewable energy at Microsoft.

“We’re grateful for our collaboration with Orsted to deliver renewable energy in ERCOT and look forward to continued progress towards a net-zero carbon future.”

The Electric Reliability Council of Texas, or ERCOT, is the grid operator in Texas.

The ‘Old 300 Solar Center’ is expected to come online in the second quarter of next year. The $400m project on about 2,800 acres of privately owned land near the city of Needville will benefit landowners, schools, and other community services for years to come via lease payments and property taxes, Orsted stressed.

“Microsoft has ambitious sustainability objectives for their Scope 1, 2 & 3 emissions, and we’re thrilled to support their targets,” said Vishal Kapadia, senior vice president and chief commercial officer at Orsted Onshore.

Microsoft has committed to using 100% renewable energy by 2025.