Ireland’s renewable energy landscape has received a significant boost as Microsoft establishes new power purchase agreements with local provider Energia. The tech giant’s commitment to sustainable energy sources continues to expand through strategic partnerships in the European market.
Microsoft’s expansion of renewable energy portfolio in Ireland
In a move that strengthens its commitment to clean energy, Microsoft has signed two corporate power purchase agreements (PPAs) with Irish energy generation company Energia. These agreements focus on energy supply from two onshore wind farms located in Ireland. The partnership represents a significant step in Microsoft’s ongoing efforts to power its operations with renewable energy sources.
The wind farms at the center of these agreements include the 25 MW Ballylongford facility in County Clare and the 25 MW Crossmore wind farm in County Kerry. According to industry timelines, the Ballylongford project is expected to be completed by mid-2026, while the Crossmore wind farm has recently installed its final turbine and should become commercially operational by the end of 2024.
While specific details regarding the capacity and duration of the PPAs have not been disclosed publicly, these agreements build upon an existing relationship between the two companies. In November 2022, Microsoft and Energia established their first PPA, laying the groundwork for this expanded collaboration.
The wind energy sector in Ireland has seen remarkable growth, with projects like these contributing to the country’s renewable energy targets:
- Increased investment in wind infrastructure across multiple counties
- Expansion of corporate involvement in renewable energy procurement
- Growing capacity of onshore wind generation throughout the country
- Enhanced local economic benefits through clean energy development
Energia’s growing influence in Irish renewable energy market
Energia, owned by New York-based I-Squared, has established itself as a significant player in Ireland’s renewable energy landscape. The company currently has 50 MW of onshore wind energy under construction and an additional 302 MW in various stages of development. Their renewable portfolio extends beyond wind, with 574 MW of fully permitted solar capacity and an additional 570 MW in the pipeline.
Beyond renewable projects, Energia maintains a diverse energy generation portfolio that includes two gas power plants in Huntstown, Dublin. This balanced approach to energy production positions the company as a versatile provider capable of meeting various energy needs while transitioning toward more sustainable sources.
In early 2024, Energia entered the market with a valuation of approximately €2 billion (US$2.17 billion). This valuation reflects the growing importance and value of renewable energy assets in Ireland’s energy landscape.
| Energia’s Renewable Energy Assets | Capacity (MW) | Status |
|---|---|---|
| Onshore Wind | 50 | Under Construction |
| Onshore Wind | 302 | In Development |
| Solar Energy | 574 | Fully Permitted |
| Solar Energy | 570 | In Portfolio |
Strategic importance of wind PPAs for Microsoft’s Irish operations
These latest agreements with Energia represent just part of Microsoft’s broader strategy to secure renewable energy for its Irish operations. In May 2023, the technology giant signed a separate PPA with SSE Renewables and FuturEnergy Ireland for 30 MW of energy from the Lenalea wind farm near Letterkenny in County Donegal.
Microsoft’s investment in renewable energy directly supports its extensive data center operations throughout Ireland. The company currently maintains more than a dozen data centers either operational or under development across various sites in Dublin. Additionally, Microsoft has plans to develop a campus southwest of Dublin in Naas, County Kildare.
The strategic importance of these wind energy agreements becomes clear when examining the energy requirements of modern data centers:
- Data centers typically consume large amounts of electricity for computing and cooling systems
- Renewable energy helps reduce the carbon footprint of these energy-intensive facilities
- Long-term PPAs provide price stability and protection against energy market volatility
- Local renewable resources reduce transmission losses and support grid reliability
By securing these agreements, Microsoft demonstrates its commitment to sustainable business practices while ensuring reliable power for its critical infrastructure. The company’s approach aligns with growing corporate responsibility trends and regulatory expectations regarding carbon reduction and environmental stewardship.
The future landscape of corporate renewable energy in Ireland
The Microsoft-Energia partnership highlights a growing trend of corporate investment in Irish renewable energy. As more technology companies establish and expand operations in Ireland, the demand for clean energy sources continues to rise. This creates market opportunities for energy providers while supporting national sustainability goals.
Ireland’s geographic position provides excellent conditions for wind energy generation, with consistent wind patterns across coastal and inland regions. This natural advantage has helped the country become an attractive location for wind energy development. The Ballylongford and Crossmore projects exemplify how strategic investments can harness these resources.
Looking forward, corporate PPAs will likely play an increasingly important role in financing and developing renewable energy infrastructure throughout Ireland. These agreements provide the financial stability needed for project development while helping companies achieve their sustainability targets. As technology companies continue to expand their presence in Ireland, we can expect further announcements of renewable energy partnerships.
The collaboration between Microsoft and Energia serves as a model for corporate renewable energy procurement, demonstrating how strategic partnerships can advance clean energy development while supporting business operations in an increasingly carbon-conscious global economy.
