Companies seal a 15-year deal for 100% clean energy supply starting in 2024.
AES Brasil, a 100% renewable energy generation company, has announced a partnership with Microsoft through the signing of a Power Purchase Agreement (PPA).
This agreement will provide renewable energy for a period of 15 years, commencing in July 2024. The energy will be generated by AES Brasil from the Cajuína Wind Complex, currently under development in the state of Rio Grande do Norte and will commence operations later this year.
The project with Microsoft will have a 154 MW installed wind capacity, sufficient to power approximately 250,000 households and reduce annual greenhouse gas emissions by 28.7 thousand tons. The total investment for this project is estimated at around R$1 billion.
“This long-term agreement with Microsoft is a milestone for AES Brasil, as it represents a company known for its pioneering spirit and technological innovation, combined with global standards of sustainability,” explained Rogério Jorge, CEO of AES Brasil. “Microsoft, a leader in the transition to clean energy, is dedicated to decarbonizing its global energy matrix and sees AES Brasil as its ideal partner to support this journey in our country.”
This marks the first contract between the two companies in Brazil, expanding on an existing global relationship for renewable energy supply. The executive emphasized that it also signifies progress in the publicly announced ESG 2030 Commitments of the company, in which AES Brasil aims to achieve established targets in areas such as delivering new clean energy, community engagement, governance, ethics, and transparency.
Rogério Jorge further explained that this contract embodies unique characteristics in terms of ESG best practices.
“Customers are the driving force behind innovations and improvements in the acquisition of clean energy. In this context, Microsoft is at the forefront of sophistication and depth in seeking clean, competitive, and reliable energy,” said Jorge.
“The technical and commercial conditions of this operation allowed Microsoft to simplify contract management by replicating the best practices already applied in other countries. This partnership aligns with the transition to a low-carbon economy, a model that adapts to the needs and expectations of society while respecting the environment.”
These and other initiatives, such as the operation and maintenance of the complex, which will be 100% locally managed by women, are aligned with the United Nations Sustainable Development Goals (SDGs). In practice, AES Brasil is working to help customers reduce emissions by 528,000 tCO2 annually starting in 2025.
“We collaborated closely with Microsoft to create this highly customized contract, demonstrating how custom energy solutions and innovative thinking can help organizations of all kinds decarbonize their operations. We structured a solution that provided flexibility, predictability, and competitiveness for them to execute their business plan in Brazil, ensuring energy supply with all the technical and commercial conditions defined,” added Jorge.
Tânia Cosentino, President of Microsoft in Brazil, sees this initiative as directly tied to the company’s global commitment to becoming carbon negative by 2030.
“This action reinforces Microsoft’s commitment to accelerating sustainable practices and generating greater efficiency in our operation. The estimate is that by 2025, our cloud, Microsoft Azure, will use 100% renewable energy,” she emphasized.
