This agreement will inject 30MW of wind energy into Ireland's power grid through the recently launched Lenalea Wind Farm, located near Letterkenny in County Donegal, Ireland.
The renewable energy Corporate PPA secures a sustainable route to market for one of Ireland's newest onshore wind farms, which was jointly developed by SSE Renewables and FuturEnergy Ireland. SSE Renewables is part of FTSE-listed SSE plc, while FuturEnergy Ireland is a Coillte-ESB joint venture.
As per the Corporate PPA agreement, the sustainable electricity generated by the seven Vestas V117-4.3MW onshore wind turbines at Lenalea Wind Farm will help Microsoft in achieving its objective of running its data centre operations entirely on 100 per cent renewable energy by 2025.
In addition to the 900MW of renewable energy CPPAs in Ireland that Microsoft disclosed in November 2022, this announcement marks another milestone. Out of this capacity, over 216MW from onshore wind and solar energy projects are already operational, contributing clean energy to Ireland's grid. Furthermore, an additional 250MW is set to become operational this year.
This agreement is the first long-term Corporate PPA to be jointly entered into by co-development partners SSE Renewables and FuturEnergy Ireland. CPPAs, such as this one, provide important routes to market for renewable energy developments, and play a valuable role in enabling the development and accelerated delivery of renewable energy generation to underpin Ireland’s decarbonisation targets.
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Microsoft's agreement will also establish a Community Benefit Fund, amounting to approximately €150,000 per year, equivalent to €2 for every megawatt hour generated by the project. The allocation of funds by way of annual grants will be overseen by a locally appointed Community Committee, which has already been established. A funding strategy will be developed in conjunction with the Community Committee to inform and shape the structure of the fund.
This announcement follows the completion of construction at Lenalea in December 2023. The 30.1MW onshore wind farm is now fully operational, generating renewable electricity for export to the national grid, and contributing towards Ireland's 2030 targets for onshore wind.
Stuart Donnelly, Director of Corporate Power Purchase Agreements, SSE Renewables said:
"Securing our first long-term Corporate PPA for new onshore wind in Ireland is a satisfying milestone for SSE Renewables and our development partner FuturEnergy Ireland. We are pleased to support Microsoft’s climate and renewable energy goals, while delivering a meaningful contribution to Ireland’s energy targets and security of supply. Working together we will also deliver a positive socio-economic impact through a substantial, locally managed community benefit fund. This agreement is an excellent example of sectors collaborating in Ireland to meet infrastructure and sustainability objectives, supporting the accelerated delivery of renewable energy, which will be vital in the years ahead to enable renewable energy investments and the delivery of 2030 and longer-term net zero targets."
Mary Lynch, Portfolio Director at FuturEnergy Ireland, commented:
"Lenalea represents the first project delivered by FuturEnergy Ireland and the very first step towards achieving our 1GW 2030 target. It is also the first of seven projects which we expect to deliver in partnership with SSE Renewables.
"Corporate PPAs are an important part of the Irish electricity market and we are very happy to support Microsoft’s commitment to carbon-free energy targets. Such collaboration and partnerships are critical if Ireland is to meet its climate action goals. We are also looking forward to maximising the local impact of the Community Benefit Fund, which is now live."
Eoin Doherty, Vice President, EMEA Regional Leader, Microsoft Cloud Operations + Innovation, stated:
"At Microsoft, we are committed to playing our part in supporting the decarbonisation of energy grids in markets in which we operate data centres. With the Lenalea Wind Farm achieving commercial operations, we are taking another important step on our journey to achieve 100% renewable energy supply and support wider efforts to add clean energy capacity to Ireland’s energy grid."
The Lenalea Wind Farm's development required over €40 million in investment from SSE Renewables and FuturEnergy Ireland, giving a significant boost to the local economy. Construction created jobs in County Donegal, with more than 150,000 working hours completed by local contractors. The project's ongoing operation is expected to continue benefiting the region economically through local spending and annual payments to the local authority.
