Microsoft has made significant strides in its commitment to renewable energy, striking groundbreaking deals in both Singapore and India. The tech giant secured a 20-year agreement with Singapore’s largest SolarNova project and a substantial green energy purchase from India’s ReNew Energy Global.
Shining Bright with Singapore’s SolarNova
The long-term contract with SolarNova will see Microsoft purchasing 100% of the renewable energy exported to the grid from the project, which is managed by EDP Renewables (EDPR). SolarNova 8 is recognized as the largest solar initiative under Singapore’s SolarNova program, aiming to install solar panels on over 1,000 public housing blocks and more than 100 government-owned buildings. Together, they’ll generate up to 200 megawatts (MW) of capacity.
This agreement is a key part of Microsoft’s broader strategy to achieve its goal of using 100% renewable energy for its operations by 2030. Despite challenges in reducing its carbon footprint, particularly with increased investments in artificial intelligence leading to rising emissions, Microsoft’s commitment to sustainability is reinforced by securing a steady supply of renewable energy from projects like SolarNova 8.
The SolarNova program, launched by Singapore’s Housing and Development Board (HDB) and the Economic Development Board (EDB), plays a central role in the country’s plan to reach a solar capacity of at least 2 gigawatts (GW) by 2030. SolarNova 8, the most extensive phase to date, is expected to contribute about 420 gigawatt-hours (GWh) of power annually, covering approximately 5% of Singapore’s total energy consumption.
Adrian Anderson, GM of Renewables, Carbon Free Energy at Microsoft, emphasized the importance of the Singapore renewables deal, stating that it ensures a continued supply of renewable energy to meet Microsoft’s ambitious goals. The success of the SolarNova program reflects Singapore’s dedication to integrating sustainable energy solutions into its urban infrastructure, setting a model for other cities globally.
Tech Giants’ Solar Power Strategy
The partnership between Microsoft and EDPR in Singapore is not their first collaboration, as they had previously worked together on a smaller solar project in 2018. Through these efforts, Microsoft is not only progressing towards its sustainability goals but also supporting Singapore’s broader objectives under the Green Plan 2030, targeting significant reductions in carbon emissions and increased reliance on clean energy.
The deal highlights a growing trend among major corporations like Microsoft in leveraging long-term power purchase agreements (PPAs) to secure renewable energy sources, contributing to the global energy transition. Other tech giants are also utilizing Renewable Energy Certificates (RECs) or renewable energy carbon credits to address their carbon footprint. Amazon, for instance, heavily relied on unbundled RECs for 52% of its renewable energy needs in 2022.
In a separate development, Microsoft has expanded its renewable energy push in India by entering into an agreement to purchase 437.6 MW of green attributes from ReNew Energy Global. This contract is expected to generate over 1 million units of green electricity attributes annually, significantly contributing to Microsoft’s sustainability goals in the region.
Puneet Chandok, President of Microsoft India and South Asia, emphasized the importance of this agreement in accelerating Microsoft’s progress towards sustainability objectives. He highlighted a holistic approach that includes advancing climate goals and empowering the ecosystem with necessary technology for a more resilient future.
In addition to the energy supply contract, ReNew has committed to allocating $15 million of revenue from the Microsoft contract towards a community fund focusing on environmental justice initiatives. The ReNew Foundation will collaborate on these initiatives, aligning with Microsoft’s environmental justice priorities.
Furthermore, Microsoft has entered into a five-year framework agreement with Pivot Energy to develop up to 500 MW of community-scale solar projects across the United States from 2025 to 2029, underscoring the company’s commitment to expanding its renewable energy footprint globally.
These agreements exemplify Microsoft’s strategy to diversify its energy sources and support the global transition to renewable energy, marking a significant step in making renewable energy more accessible and widespread.
