Contact Energy and Microsoft inked a 10-year renewable attribute purchase agreement in September 2022 to assist in the construction of additional renewable energy capacity in Aotearoa New Zealand in accordance with Microsoft’s sustainability commitments.
Contact will provide Microsoft with all renewable energy generated by Contact’s new 51.4MW Te Huka Unit 3 geothermal power station under the terms of the agreement.
According to Contact, ownership of renewable energy attributes is the global standard for demonstrating that an electricity user is utilising a renewable source. Because electricity consumed on a shared grid cannot be traced back to a single power plant, this is critical for boosting renewable energy. This contract backed Contact’s investment decision to commence construction of Te Huka’s new renewable energy-producing plant.
Contact CEO Mike Fuge said long-term commitments to the acquisition of renewable energy assets are a method to bring a new generation of renewables online faster while directly tying a company’s environmental ambitions with physical solutions.
“Further development at Te Huka has always been on the cards. By entering this arrangement with Microsoft, Te Huka Unit 3 got the backing it needed, providing further confidence to develop this project. Microsoft’s commitment shows what companies with energy intensive facilities can achieve to support new renewable energy sources,” Fuge stated.
According to Fuge, the agreement shows the company’s commitment to renewable energy certificate contracts tied to new renewable power generation. He noted that it is part of Contact’s Contact26 strategy to decarbonise Aotearoa New Zealand.
“Geothermal is unique in that it provides 24/7 non-weather dependent, reliable, and renewable base load generation to the grid. This deal demonstrates the actions of two leading organisations aligning to create better outcomes both here in Aotearoa and globally,” he added.
Microsoft New Zealand Managing Director Vanessa Sorenson stated that the organisation was pleased with the agreement and the alignment it provided in terms of sustainability.
“Microsoft has big plans in New Zealand. With the construction of the data center region, this agreement aligns our New Zealand activities with Contact Energy’s presence and capabilities around geothermal in New Zealand and will further strengthen our transition to 100% renewable energy by 2025. It will also support Microsoft’s 100/100/0 commitment,” Sorenson said.
