EDP Renewables and Microsoft Sign VPPA Agreement for 389 MW of Solar Power

EDP Renewables North America (EDPR NA) has announced a significant virtual power purchase agreement (VPPA) with Microsoft, further cementing the tech giant's commitment to sustainability and carbon reduction. The agreement, signed on February 10, 2025, involves the purchase of 389 MW of electricity and renewable energy credits (RECs) from three new utility-scale solar projects totaling 400 MW in Illinois and Texas.



The three projects, Wolf Run (140 MW), Hickory (110 MW), and Cattlemen II (150 MW), are expected to generate a combined 650 GWh of clean energy annually, offsetting approximately 350,000 metric tons of CO2 emissions. Microsoft's purchase of the renewable energy from these projects supports its goal of being carbon negative by 2030 and removing all historical emissions by 2050.

The agreement also brings economic benefits to the local communities where the projects are located. The construction of the Wolf Run and Hickory projects in Illinois created 500 jobs, while the Cattlemen II project in Texas created approximately 300 jobs. Additionally, the projects have contributed millions of dollars to local governments through tax payments, ensuring critical services, schools, road maintenance, and other local initiatives are well-funded.



The Hickory solar project in Illinois uses an Environmental Justice PPA (EJ PPA) developed by Microsoft and Volt Energy Utility. This ensures that a portion of the project's funding goes towards supporting organizations and causes that promote equal access to clean air, water, and renewable energy, as well as energy assistance programs and workforce training in clean energy careers. This helps to address environmental injustices in the local community.

The VPPA agreement between EDPR NA and Microsoft not only supports the tech giant's sustainability goals but also contributes to the broader energy market dynamics. As more corporations commit to sourcing renewable energy, it creates competition among energy providers to offer attractive long-term contracts. This competition drives innovation, cost reduction, and improved services in the renewable energy sector, ultimately helping to meet the increasing demand for clean energy.

In conclusion, the VPPA agreement between EDP Renewables and Microsoft is a significant step towards a more sustainable future. The agreement supports both companies' sustainability goals, contributes to local economic growth, and influences the broader energy market dynamics. By investing in renewable energy projects, Microsoft and EDPR are helping to reduce greenhouse gas emissions, support local economies, and foster a positive image for renewable energy providers.