In a first-of-its-kind agreement, Microsoft and Brookfield Asset Management, together with Brookfield Renewable, have announced the largest single corporate power purchase agreement (PPA) ever signed.
The deal is almost eight times larger than any previous single corporate PPA. It advances Microsoft’s goal of having 100% of its electricity consumption, 100% of the time, matched by zero-carbon energy purchases by 2030.
As Bloomberg noted, it’s “the biggest corporate clean-energy purchase agreement ever announced, as the technology giant ramps up its investment in artificial intelligence.”
The agreement paves the way for Brookfield to deliver over 10.5 GW of renewable power capacity to the U.S. and Europe between 2026 and 2030.
Adding that much energy – enough to power about 1.8 million homes – would cost more than $10 billion based on industry trends, Financial Times reported; the power will be added to grids from which data centers draw electricity.
The agreement would finance the construction of solar and wind farms and also involve new or impactful carbon free energy generation technologies.
It has the potential to increase in scope to deliver additional capacity in the U.S. and Europe and in parts of Asia, including India, and Latin America.
In addition to this transaction, in the past 10 months, Microsoft has signed one of the largest permanent CO2 removal deals, the world’s first fusion energy purchase agreement and a 12GW solar module agreement, making the company one of the largest renewable-energy purchasers in the world
“Microsoft wants to use our influence and purchasing power to create lasting positive impact for all electricity consumers,” said Adrian Anderson, General Manager of Renewables, Carbon Free Energy, and Carbon Dioxide Removal (CDR) in a press release.
Teresa Hill led the Orrick team advising Microsoft. The Orrick team also included Lana Le Hir, Monica Molina and Austin Himes.
Focused on helping public and private companies in achieving their global “net zero” carbon commitments, Teresa has a particular emphasis on negotiating renewable energy power purchase agreements (PPAs). She has partnered with some of the largest corporate buyers of renewable energy, working to expand the global footprint of their energy portfolios in the United States, Latin America, Europe, Australia and Asia.
Teresa has extensive experience with wind, solar and storage projects and, specifically, the negotiation of development-related agreements, including virtually and physically settled renewable power purchase agreements.
Prior to joining Orrick, Teresa was a partner in the energy and infrastructure group of a global law firm and in the environment, land use and natural resources and renewable energy groups of a Portland-based law firm. She also clerked for Chief Justice Linda Copple Trout, the first woman appointed to the Idaho Supreme Court.
She focuses on innovating creative solutions for all types of utility scale renewable power purchase agreements and carbon offset and removal agreements. This work includes virtual, physical, master-confirm portfolios, block delivery, aggregation, 24/7 hourly delivery, load following, battery storage, REC agreements, on-site solar, and green tariff direct agreements. Lana leverages her deep sell-side experience as Senior Counsel to one of the largest renewable energy developers in the world, with her extensive corporate buy-side knowledge, and background in electrical engineering, to advise effectively and close deals swiftly. Lana and her team at Orrick are at the forefront of corporate renewable energy procurement and are setting the industry standards for implementation of energy justice and Environmental, Social, and Corporate Governance (ESG) considerations.
Prior to joining Orrick, Lana was a Senior Associate at an international law firm where she managed portfolio growth for leading corporate purchasers and developers representing over 3.5 GWs of renewable transactions. She also served as Senior Counsel to Avangrid Renewables, a subsidiary of Iberdrola Renewables, for 8 years, where she was responsible for its entire US portfolio of power purchase agreements (7.5 GWs). Before her legal career, Lana managed a product engineering team in the development of a new cutting-edge wireless technology for consumer electronics.
Monica advises renewable energy developers in site acquisition, interconnection, and power purchase agreement negotiations, as well as on the environmental aspects of their transactions. In addition, Monica represents major corporate purchasers in the negotiation of renewable energy and sustainability related agreements to help them meet their global carbon reduction goals.
Drawing on past roles at an independent power producer and in climate policy, Monica helps clients navigate the energy sector’s dynamic business and legal landscape. Prior to joining Orrick, Monica was an energy and environment associate at a global law firm.
His practice focuses on project development and finance, offtake agreements, mergers and acquisitions and general corporate matters. Austin represents sponsors, developers, lenders and investors in connection with equity investments, refinancing transactions, joint ventures and other corporate matters, primarily in the renewable energy sector.
Austin also has experience working on agreements concerning the construction of renewable energy projects, including photovoltaic module supply agreements, turbine supply and service agreements, engineering procurement and construction (EPC) agreements, battery energy storage system (BESS) supply agreements, and subcontracts of various scopes.
Prior to joining Orrick, Austin worked as a research assistant for the Assistant Dean for Energy Law at the George Washington University Law School, a law clerk for the Department of Justice, a financial analyst for large U.S. government acquisitions, and as a project manager for a California-based fintech startup.
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