Microsoft has signed an agreement to purchase solar power generated from panels installed on hundreds of public housing and government-owned buildings in Singapore, advancing its climate goals.
The tech company will buy 100% of the energy fed into the grid from EDP Renewables’ SolarNova 8 project, as announced by the Madrid-based energy company on Tuesday.
This project is not only Singapore’s largest solar initiative but also the largest under the government’s SolarNova program.
On August 27, EDP Renewables and Microsoft announced the signing of a 20-year offtake agreement, marking the second such deal between the two companies in Singapore.
The SolarNova Programme
The SolarNova Programme, launched in 2014, is a joint initiative by the Singapore Economic Development Board (EDB) and the Housing Development Board (HDB) aimed at accelerating the deployment of solar photovoltaic (PV) systems across Singapore.
Through the SolarNova program, HDB consolidates the public sector’s demand for solar panel installations, facilitating the deployment of these systems on HDB blocks and various government sites. This approach helps to streamline the installation process and expand the adoption of solar energy throughout the country.
The CEO of EDP Renewables Miguel Stilwell D’Andrade tells The Edge , “We are strengthening EDP’s global collaboration with Microsoft through this project and together we are taking a step towards achieving Singapore’s sustainability goals of at least 2GWp of solar energy by 2030.”
“Contracting with Microsoft is a catalyst for accelerating the energy transition and to continue investing in the region,” he said.
Microsoft’s attempts to get back on the green road
Microsoft has encountered challenges in its pursuit to become carbon-negative by 2030, with a 30% increase in emissions last year compared to 2020 levels. This rise, one of the first tangible signs of how increased investment in artificial intelligence can complicate pollution reduction efforts, has prompted the company to intensify its climate initiatives.
As part of these efforts, Microsoft has committed to purchasing all renewable energy exported to the grid from the SolarNova 8 project, which has a capacity of up to 200 megawatts, though some of this energy will be used to power the associated buildings.
The SolarNova programme is expected to generate around 420 gigawatt-hours of power annually, accounting for approximately 5% of Singapore’s total energy consumption, with SolarNova 8 being the largest phase of the initiative.
EDPR-Microsoft collaboration history
In 2018, Microsoft signed its first clean energy deal in Asia, agreeing to purchase all the energy generated by a similar 60MWp solar project developed by Sunseap Group, which is now part of EDP Renewables.
Earlier this year, EDP Renewables and Volt Energy Utility announced a new partnership to develop the Hickory Solar Park, a 110 MWac photovoltaic project located in Illinois.
As part of this initiative, Microsoft has agreed to purchase electricity and renewable energy credits (RECs) from the project for the next fifteen years. This agreement aligns with the three companies’ commitment to fostering an equitable and just transition within the electric power sector.
This contract builds on the collaboration between EDPR and Microsoft, which began in July 2019 when Microsoft became an off-taker of EDPR NA’s 125 MW Timber Road IV Wind Farm in Payne, Ohio.
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