RWE signs 15-year PPAs with Microsoft for new wind farms in Texas

RWE, a global leader in renewable energy, has announced the signing of two 15-year Power Purchase Agreements (PPAs) with Microsoft Corporation. These agreements will enable Microsoft to procure clean electricity from two of RWE‘s new onshore wind farms in Texas, marking a significant step towards achieving Microsoft’s sustainability objectives.

The two projects, Peyton Creek II and Lane City, will combine for a total capacity of 446 megawatts (MW). The groundbreaking ceremony for Peyton Creek II has recently occurred, and RWE has confirmed the investment decision for the Lane City project. These initiatives underscore RWE’s commitment to expanding its renewable energy footprint in Texas, the company’s largest U.S. market.

Strategic Renewable Energy Initiatives

Andrew Flanagan, CEO of RWE Clean Energy, expressed enthusiasm about the collaboration, stating, “As RWE, we are excited to be working with Microsoft to provide the clean electricity they need to achieve their sustainability goals. Together, we’re united in our efforts to deliver a clean energy future. As a growing green business, we are committed to driving our renewable targets, supporting local communities grow sustainably.”

RWE and Microsoft Forge Clean Energy Path with New Wind Farm PPAs in Texas

The construction of Peyton Creek Wind Complex is underway near RWE’s existing Peyton Creek I wind farm in Bay City, Texas, which has been operational since March 2020. The new Peyton Creek II project will boast a capacity of 243 MW. Meanwhile, the Lane City project, expected to start construction this summer, will add another 203 MW to RWE’s portfolio.

Collaborations and Community Impact

To facilitate these projects, RWE has partnered with leading industry players including Vestas North America for the V163 4.5 MW turbines, and Wanzek Construction, Inc., a MasTec Renewables company, along with RES, a global renewable energy solutions company, for construction activities.

These developments are not just milestones for RWE but also for the local communities. The Peyton Creek II and Lane City projects are expected to create between 250-300 construction jobs each and provide 20 full-time jobs once operational. They are also projected to contribute approximately $300 million each to the local tax bases of Matagorda and Wharton Counties, respectively, supporting essential local services such as schools and law enforcement.

Expanding Texas’s Renewable Energy Landscape

Once completed, these projects will increase RWE’s total installed capacity in Texas to nearly 5 gigawatts, thereby strengthening its position in the ERCOT market. This expansion is part of RWE’s broader strategy to enhance its renewables portfolio in the U.S., which currently stands at 9.3 GW across wind, solar, and battery storage solutions.

RWE’s initiative aligns with Microsoft’s goal to achieve 100% coverage of its electricity consumption with renewable energy by 2025, demonstrating a shared commitment to sustainable development and clean energy production.