Microsoft Signs 140 MW Solar PPA with Avangrid in Washington State

Avangrid, the US subsidiary of Iberdrola, has signed a power purchase agreement with Microsoft to supply 140 MW of solar energy from a new project in Klickitat County, Washington. The deal is the fourth US renewable energy project under contract between the two companies, bringing their combined US contracted capacity to more than 500 MW.

The new Bluebird Solar project is scheduled to begin commercial operation in 2028 and is expected to create approximately 300 jobs during construction, representing an investment of around $300 million in the local community. Avangrid and Microsoft also have existing PPAs in Ohio and California, which came online in 2025, and a wind project in Washington expected to begin commercial operation this year. The accumulated portfolio reflects a sustained procurement relationship between the two companies that spans multiple US renewable energy technologies and geographies.

Microsoft recently announced it had achieved its clean energy matching goal, reaching 100% annual matching of its global electricity consumption with renewable energy purchases. The company has now set a more ambitious 100/100/0 vision, committing to have all of its electricity consumption matched by zero-carbon energy sources 100% of the time by 2030, a target that requires addressing not just annual volumes but real-time and locational matching. Long-term PPAs such as the Avangrid deal provide Microsoft with a cost-effective mechanism to add new renewable capacity to the grid rather than simply redirecting existing generation.

For Avangrid, the Microsoft relationship represents an important component of its US development pipeline, with large technology companies providing the long-term demand signals needed to move capital-intensive solar and wind projects from development through to construction and financing. Iberdrola's global renewable energy strategy increasingly relies on corporate PPAs as an anchor for new project development, particularly in the US market where demand from data centre operators and technology companies is accelerating renewable energy deployment. The Bluebird Solar project will add to Washington State's growing renewable energy base.

Key figure — 500 MW of combined US renewable energy capacity under contract between Avangrid and Microsoft