Microsoft and Pivot Energy Partner for 500 MW of Community Solar Projects in U.S.

Renewable energy provider Pivot Energy has announced a five-year agreement with Microsoft to develop up to 500 megawatts (MWac) of community-scale solar energy projects throughout the United States. This partnership aims to support Microsoft in reducing its Scope 3 emissions by matching customer electricity usage with new renewable electricity generation.

Microsoft has faced challenges in managing its Scope 3 emissions, which have significantly impacted its climate goals. Despite setting a target to cut Scope 3 emissions by more than half by 2030 compared to 2020 levels, the company reported that these emissions were over 30% higher in 2023 than in 2020. The increase has been primarily driven by the rapid expansion of data centers to meet the rising demand for AI computing power. Earlier this year, Microsoft launched a company-wide initiative to identify and implement measures to tackle its Scope 3 emissions challenges.

Under the new agreement, Microsoft will purchase renewable energy credits (RECs) from Pivot Energy over a 20-year term. Pivot Energy will develop approximately 150 solar projects in about 100 communities across 20 states, including Colorado, Maryland, Illinois, Delaware, Pennsylvania, and Ohio. The first projects are expected to become operational before the end of 2024.

This agreement marks Microsoft’s first major distributed generation portfolio and is part of a series of clean energy deals for the tech giant. It follows a five-year global renewable energy framework agreement with Brookfield, aiming to develop more than 10.5 GW of new clean energy capacity in the U.S. and Europe. Earlier this year, Microsoft also secured more than 800 MW of power purchase agreements (PPAs) in Texas with providers Leeward Renewable Energy and RWE.

Adrian Anderson, GM, Renewables, Carbon Free Energy, CDR at Microsoft, emphasized the importance of the partnership, stating, “We believe the clean energy transition can and should benefit communities across the United States that have been historically excluded from economic opportunity. Through our work with Pivot Energy and with its commitments to driving community impact, this collaboration helps to build more inclusive, local economic growth across 100 communities while addressing the sustainability needs and opportunities within those communities.”

The agreement represents Pivot Energy’s largest REC agreement and most significant community impact collaboration. It includes several initiatives, such as increasing the diversity of subcontractors, partnering with workforce development organizations to train and hire diverse local talent, working with the Sustain Our Future Foundation to invest in equitable community initiatives, and increasing energy bill savings for low-income subscribers through community solar projects.

Tom Hunt, CEO of Pivot Energy, highlighted the broader benefits of the collaboration, saying, “An economy fueled by clean, distributed energy can do more than provide power at low cost; it drives growth and success in communities across the nation. This collaboration between Pivot Energy and Microsoft exemplifies the power and impact that distributed generation can have.”