Canada-based ATCO Group announced on Tuesday that it has entered into a 15-year power purchase agreement with Microsoft. Under the deal, Microsoft will purchase all renewable energy generated by ATCO's Deerfoot solar facility in Calgary, Alberta.
The Deerfoot solar plant, with a total capacity of 37 MW, is currently in the construction stage and is expected to be operational in the fourth quarter of 2022. When commissioned, the plant is expected to be one of the largest solar installations in Alberta, capable of generating enough electricity to power 8,000 homes and helps ATCO move toward its goal of developing more than 1,000 MW of renewable energy by 2030.
ATCO's desire to be a leader in decarbonization and enable the energy transition for our customers is reflected in this agreement, according to Bob Myles, Executive Vice President, Corporate Development. “We're very pleased to work with Microsoft to achieve our shared objectives around renewable energy. Our focus, in a transitioning world of energy, is to provide energy in a safe, affordable and reliable manner.”
“Renewable energy supply contracts like this agreement with ATCO are key to meeting our goal of contracting 100% of our energy consumption with renewable sources by 2025,” stated Kevin Peesker, President, Microsoft Canada. He added that the agreement with ATCO is an important step in helping Microsoft deliver on its renewable energy commitments in Canada.
ATCO's other solar plant, the 27-MW Barlow Plant, is located next to the Deerfoot Solar Plant. The two facilities are expected to generate enough renewable electricity to offset 68,000 tonnes of carbon emissions annually.
Microsoft has recently accelerated its energy transition in various countries. The company signed a PPA with Chilean power company AES Andes earlier this month to power its data center in Chile with wind and solar energy. According to a report released in February by the Clean Energy Buyers Association, Microsoft purchased a total of 550 MW of renewable energy in 2021, ranking fifth globally.
Microsoft is also actively introducing new measures to cut carbon emissions. The company announced in March that in the hopes of lowering Scope 3 indirect emission, it will raise internal carbon fee for business travel by 567% to US$100. That money gets set aside for the company to invest in areas that will help it become a greener company.