Microsoft’s Solar Power Move: Lighting Up Singapore and India’s Future

Microsoft is doubling down on its renewable energy commitments with groundbreaking deals in both Singapore and India. The company securred a 20-year agreement with Singapore’s largest SolarNova project and a significant green energy purchase from India’s ReNew Energy Global.

Shining Bright with Singapore’s SolarNova 8

The long-term contract will see Microsoft buying 100% of the renewable energy exported to the grid from the project, which is managed by EDP Renewables (EDPR).

The SolarNova 8 project is recognized as the largest solar initiative under Singapore’s SolarNova program. It aims to install solar panels on over 1,000 public housing blocks and more than 100 government-owned buildings. Together, they’ll collectively generate up to 200 megawatts (MW) of capacity.

The agreement is part of Microsoft’s broader strategy to meet its ambitious goal of using 100% renewable energy for its operations by 2030. The company has faced challenges in reducing its carbon footprint, particularly with rising emissions due to increased investments in artificial intelligence.

However, by securing a steady supply of renewable energy from projects like SolarNova 8, Microsoft is reinforcing its commitment to sustainability.

The SolarNova program, launched by Singapore’s Housing and Development Board (HDB) and the Economic Development Board (EDB), is a central component of the country’s plan to achieve a solar capacity of at least 2 gigawatts (GW) by 2030. The program has seen several phases, with SolarNova 8 being the most extensive to date. The energy generated from this phase alone is expected to contribute about 420 gigawatt-hours (GWh) of power annually, covering about 5% of Singapore’s total energy consumption.

Remarking on their Singapore renewables deal, Adrian Anderson, GM, Renewables, Carbon Free Energy, Microsoft, stated that:

“Building our renewable energy portfolio with EDPR ensures that we can continue to secure renewable energy supply to meet our Microsoft’s ambitious renewable energy and decarbonization goals.”

For Singapore, the success of the SolarNova program reflects the nation’s commitment to integrating sustainable energy solutions into its urban infrastructure, making it a model for other cities worldwide.

As the largest solar project in Singapore, SolarNova 8 not only boosts the nation’s clean energy capacity but also demonstrates how corporate partnerships can accelerate the shift towards a more sustainable future.

Tech Giants’ Solar Power Strategy

This partnership between Microsoft and EDPR is not their first collaboration. The two companies had previously worked together on a smaller solar project in Singapore in 2018, further cementing their relationship in advancing renewable energy initiatives.

Through these efforts, Microsoft is not only progressing towards its own sustainability goals but also supporting Singapore’s broader objectives under the Green Plan 2030, which targets significant reductions in carbon emissions and increased reliance on clean energy.

The deal highlights the growing trend of major corporations like Microsoft leveraging long-term power purchase agreements (PPAs) to secure renewable energy sources, thus driving the global energy transition.

Other tech giants are also using Renewable Energy Certificates (RECs) or renewable energy carbon credits, to tackle their carbon footprint.

In 2022, Amazon heavily relied on unbundled RECs for 52% of its renewable energy needs, making it the most dependent on these instruments among major tech companies. Amazon has acknowledged this reliance and stated plans to reduce it as more of its directly contracted renewable energy projects come online.

Likewise, Meta used unbundled RECs for 18% of its renewable energy in 2022. These approaches highlight different strategies of the big tech to achieve renewable energy goals.

It’s the same for Microsoft, which also aims to cut dependence on RECs in the future. Its acquisition of solar power from Singapore’s public buildings is a critical development in both the company’s and the country’s efforts to combat climate change.

Microsoft Expands Renewable Energy Push in India

Separately, in India, Microsoft has entered 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, contributing significantly to Microsoft’s sustainability goals in the region.

This partnership is a substantial step forward for both companies, aligning with Microsoft’s ambitious renewable energy and decarbonization goals. Puneet Chandok, President of Microsoft India and South Asia, highlighted the importance of this agreement in accelerating Microsoft’s progress towards its sustainability objectives. He further said that:

“We are taking a holistic approach that includes progressing our climate goals and empowering the ecosystem with the technology that is needed to build 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. This fund will focus on environmental justice initiatives, particularly those aimed at improving women’s livelihoods, economic empowerment, rural electrification, environmental remediation, and water quality. The ReNew Foundation, the philanthropic arm of ReNew, will collaborate on these initiatives, aligning with Microsoft’s environmental justice priorities.

Furthermore, in August 2024, Microsoft also entered into a five-year framework agreement with Pivot Energy to develop up to 500MW of community-scale solar projects across the United States from 2025 to 2029. This agreement further underscores Microsoft’s commitment to expanding its renewable energy footprint globally.

These agreements reflect Microsoft’s strategy to diversify its energy sources and support the global transition to renewable energy. These efforts are part of the company’s broader initiative to make renewable energy more accessible and widespread.

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