- Microsoft and AGL Energy have agreed to a 15-year contract to purchase renewable energy certificates.
- AGL’s Climate Transition Action Plan aims to add around 12GW of generation and firming capacity by 2035.
Microsoft and Australia Energy Company (AGL) have entered into a 15-year agreement to supply Microsoft with renewable energy certificates from the Rye Park wind farm projects in New South Wales. This agreement comes after AGL’s Power Purchase Agreement with Tilt Renewables for electricity and environmental products from the same wind farm. AGL will receive 45% of Rye Park’s output, equivalent to about 513GWh annually, through its 15-year deal with Tilt Renewables.
Owners of renewable energy certificates, like large-scale generation certificates, have the option to sell them or use them to meet their obligations under renewable energy legislation or reduce their carbon emissions voluntarily. Markus Brokhof, AGL’s Chief Operating Officer, highlighted that this agreement with Microsoft demonstrates AGL’s commitment to the shift towards renewable energy and how supply agreements for renewable energy certificates can financially support new renewable energy projects.
Steven Worrall, Microsoft ANZ Managing Director, expressed appreciation for the collaboration with AGL and the increased procurement of renewable energy certificates in Australia. He also emphasized Microsoft’s ongoing efforts to contribute to the transition of Australia’s electricity grid to renewable sources and reduce emissions associated with their operations.
As part of AGL’s Climate Transition Action Plan, the company aims to add approximately 12GW of generation and firming capacity by 2035. This consists of 6.3 GW from renewables and 5.9 GW of firming capacity.