Renewable energy provider Pivot Energy has announced a five-year agreement with Microsoft to develop up to 500 megawatts (MWac) of community-scale solar projects in the US. The agreement will help Microsoft match customer electricity consumption with new electricity generation from renewable sources, supporting its efforts to reduce Scope 3 emissions, it said esgtoday.com.
The biggest challenge to Microsoft's climate goals
Rising Scope 3 emissions have emerged as the biggest challenge to Microsoft's climate goals. Although the company has set a goal of cutting Scope 3 emissions by more than half by 2030 compared to 2020, the tech giant recently reported that Scope 3 emissions in 2023 were actually more than 30 % higher than in 2020, driven largely by significant growth in data centers to meet the growing demand for AI computing power.
The company said earlier this year that it was launching an initiative to identify and develop measures to address Scope 3 emissions challenges.
150 solar projects in the US
Under the new agreement, Microsoft will purchase renewable energy credits (RECs) over a 20-year period from Pivot, developing approximately 150 U.S. solar projects and about 100 community solar projects in 20 states, including Colorado, Maryland, Illinois, Delaware, Pennsylvania, and Ohio. The first projects are expected to be implemented before the end of 2024.
The deal marks Microsoft's first major distributed generation portfolio and forms the latest in a series of clean energy deals for Microsoft. These include a 5-year global renewable energy framework agreement with Brookfield to develop more than 10,5 GW of new clean energy capacity in the US and Europe, and more than 800 MA PPAs in Texas with suppliers Leeward Renewable Energy and RWE more early this year.
"We believe the clean energy transition can and should benefit communities across the United States that have historically been excluded from economic opportunity." Through our work with Pivot Energy and its commitment to driving community impact, this collaboration is helping to build more inclusive, local economic growth in 100 communities while addressing the sustainability needs and opportunities in those communities,” says Adrian Anderson of Microsoft.
Pivot's largest REC agreement
The agreement with Microsoft is Pivot's largest REC agreement and most significant community impact collaboration. It includes four initiatives, including increasing the diversity of subcontractors; partnering with workforce development organizations to train and hire diverse local talent; partnering with the Sustain Our Future Foundation to invest in community equity initiatives; and increasing energy bill savings from community solar projects targeting low-income customers.
“An economy fueled by clean, distributed energy can do more than provide low-cost energy. It drives growth and success in communities across the country. This collaboration between Pivot Energy and Microsoft exemplifies the power and impact that distributed generation can have," said Tom Hunt, CEO of Pivot Energy.
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