Microsoft backs Washington solar project with long-term PPA

Microsoft has signed a long-term power purchase agreement with Cypress Creek Energy for electricity from the Ostrea Solar project in Washington state. The facility is now operationally ready.

PPAs remain a standard mechanism for corporations to secure renewable energy supply and, critically, to claim the environmental attributes – typically renewable energy certificates – that bundle with that power. For Microsoft, this adds solar capacity to its renewable energy portfolio, which the company uses to offset grid electricity consumption and demonstrate progress toward its stated sustainability commitments.

The Ostrea project's timing matters. Washington state already benefits from significant hydroelectric generation, but solar complements that baseload with a different generation profile. For Microsoft, the deal provides a measurable, third-party contract underpinning its renewable energy claims – essential for credibility in scope 2 emissions reporting.

What's unstated but relevant: the contract terms (length, price, capacity), whether environmental attributes are retired or sold, and how Microsoft will account for this in its emissions baseline. These details determine whether this PPA genuinely reduces Microsoft's reported scope 2 footprint or simply frees up renewable energy for others to claim. They also signal whether Microsoft is optimising for reported impact or actual grid decarbonisation.

PPAs are not controversial, but they're also not a substitute for direct capital deployment in renewable infrastructure, nor do they alone decarbonise the grid. They work best as part of a broader strategy that includes on-site generation, energy efficiency, and engagement with regional grid operators on grid mix improvement.

Microsoft inks long-term PPA for Washington solar project

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