Microsoft has announced a power purchase agreement (PPA) with Hanwha Q Cells, a South Korean solar panel maker, to guarantee a continuous supply for up to 2.5GW of solar panel capacity in the US, this move is in line with its aim to run entirely on renewable energy by 2030,
Microsoft has long been committed to using sustainable energy, but over time, it has modified how it approaches achieving its goals. It started out buying renewable energy credits to reduce its carbon emissions, but it has since switched to PPAs that will enable it to supply clean energy to many of its activities.
Microsoft has pledged to run on only renewable energy by 2025, after which it will be carbon-negative and water-positive. by 2030. Microsoft might increase its operational solar PPA capacity by up to 2.5GW under the terms of its agreement with Q Cells.
The agreement is unusual since it involves a significant energy consumer going further up the supply chain than usual to work directly with a solar panel manufacturer. With Microsoft, Qcells will create solar projects and supply panels and engineering, procurement, and construction (EPC) services for Microsoft’s solar PPA projects.
Microsoft will assist Q Cells in setting up a US supply chain, with a factory slated for Georgia. Power purchase agreements (PPAs), in which Microsoft finances the development of complete wind and solar farms, will be used by the cloud giant to use Q Cells solar panels globally in power centers.
A new facility being built by Q Cells in Bartow County, Georgia, will produce 3.3GW of solar ingots, wafers, cells, and finished modules annually. Additionally, it has a module assembly factory in Dalton, Georgia, with an annual production capacity of 2GW of modules. By 2024, Qcells’ total output in Georgia will be 8.44GW after adding an additional 5.11GW of capacity to Dalton.
The US will now have a supply chain for solar power installations, according to Microsoft and Q Cells, the latter of which claims it will be the first company in the state with a one-stop solar system supply chain.
According to Brad Smith, vice chair and president of Microsoft, to advance a global green energy economy, a robust solar energy supply chain must be built. This goal will become a reality because of Microsoft’s collaboration with Q Cells, which will bring investment and innovation to rural Georgia.
“As one of the world’s largest purchasers of renewable energy, this work will help bring more solar energy to the grid, faster.” said Smith.
