National energy provider Pivot Energy has entered into a five-year framework agreement with Microsoft to develop up to 500 MW of community-scale solar energy projects across the United States, slated to occur between 2025 and 2029.
This substantial partnership is designed to support both Pivot’s and Microsoft’s shared goal of maximizing the environmental and social advantages of the renewable energy transition, particularly at the local community level.
Significance of the Agreement
This framework agreement is pivotal for both companies, marking the largest renewable energy credit (REC) agreement for Pivot Energy and representing their most extensive collaboration focused on community impact.
For Microsoft, this venture is their first major distributed generation portfolio, aligning with their broader strategy to significantly reduce Scope 3 emissions by more than 50% by the year 2030.
By pairing customer electricity consumption with new renewable energy production, the agreement significantly contributes to Microsoft’s sustainability goals.
Scope and Impact of the Solar Projects
Under the terms of the agreement, Pivot Energy will develop around 150 solar projects across approximately 100 communities in 20 states, including Colorado, Maryland, Illinois, Delaware, Pennsylvania, and Ohio.
Microsoft has committed to purchasing the RECs from these projects over a 20-year period, with the first projects anticipated to go live by the end of 2024.
Community-Centric Initiatives
This collaboration enhances Pivot Energy’s commitment to community impact, with each solar project expected to deliver significant local benefits. The agreement emphasizes four main community-focused initiatives:
- Promoting Diversity among Subcontractors: Pivot Energy is committed to increasing the diversity of its subcontractor base, ensuring a broader range of representation in the projects.
- Workforce Development: The company will collaborate with workforce development organizations and subcontractors to train and hire diverse local talent, thus promoting economic opportunities within the communities.
- Investing in Equitable Community Initiatives: Pivot Energy will partner with the Sustain Our Future Foundation to invest in initiatives that support equitable community development.
- Enhancing Energy Savings for Low-Income Subscribers: The agreement includes a focus on increasing energy bill savings for low-income subscribers, ensuring that the benefits of solar energy reach those who need them most.
Statements from Leadership
Tom Hunt, CEO of Pivot Energy, highlighted the transformative potential of clean, distributed energy, stating, “An economy powered by clean, distributed energy not only provides affordable electricity but also fosters growth and prosperity in communities nationwide. This collaboration between Pivot Energy and Microsoft is a testament to the significant impact that distributed generation can achieve. We are proud to lead the industry in developing solar projects that benefit local communities and are honored to work with Microsoft to deliver purpose-driven solar energy.”
Adrian Anderson, General Manager of Renewables, Carbon-Free Energy, and CDR at Microsoft, echoed this sentiment, emphasizing the importance of inclusive economic growth: “We believe that the transition to clean energy should benefit all communities, particularly those historically excluded from economic opportunities. Through our collaboration with Pivot Energy, and their commitment to driving community impact, we are helping to foster more inclusive local economic growth across 100 communities while addressing sustainability challenges and opportunities.”
Long-Term Impact of the Collaboration
Over the span of 20 years, the 500 MW of solar capacity developed under this agreement will generate over 1 billion kWh of electricity annually.
This is sufficient to power approximately 90,000 homes each year and is equivalent to removing around 165,000 gas-powered passenger vehicles from the road annually. The collaboration between Pivot Energy and Microsoft is poised to make a lasting positive impact on both the environment and the communities involved.