Microsoft Corp. plans to buy about 60% of the energy production from a massive solar power project in Spotsylvania County to power its data centers in Virginia. The proposed 500-megawatt solar development, called Pleinmont, would include more than 750,000 solar panels on a 3,500-acre site, which, when completed, would be the fifth-largest solar site in the country.
“This is really important to Microsoft, and we think it is really important to Virginia for several reasons,” said Michelle Patron, director of sustainability for Microsoft. “This is going to be the largest corporate purchase of solar power ever in the United States. … We think this puts Virginia on the map for clean energy.”
The Pleinmont solar farm is being planned by Sustainable Power Group LLC, or sPower, which is a joint venture of Arlington-based AES Corp. and Canada-based investment fund AIMCo, according to the Richmond Times-Dispatch.
The project still requires approval by the State Corporation Commission. The commission has scheduled a public hearing in May and is soliciting public comments.
Microsoft has said that it has met its target to power at least 50% of its data centers with clean energy by 2018, and the company wants to achieve 60% clean energy by early 2020, says the Times-Dispatch. In 2016 the company had agreed to buy power from a 20-megawatt solar farm in Fauquier County.
Bacon’s bottom line: In all the excitement over grid modernization and the rollback of the electric rate freeze in recent months, I totally missed this story. But if Virginia is on track to build the fifth-largest solar facility in the country, and if the deal represents the biggest corporate purchase of solar power ever in the U.S., that’s a big deal!
Previous reporting by the Times-Dispatch noted that Pleinmont would sell its electricity into the PJM interstate wholesale power market to companies that want to offset their electricity consumption with power produced by renewable sources of energy.
Does this deal cut Dominion Energy Virginia out of the picture as an electric power generator? Does this represent a new strategic direction for Microsoft and other data-center companies, which are driving the growth in electricity demand in Virginia? In other words, is Dominion’s electric power-generating monopoly being eroded? Five hundred megawatts is a lot of electricity — roughly half the capacity of a new, state-of-the-art natural gas-fired power plant.
Or will Dominion swoop in later, as it has in several other solar deals, acquire the Pleinmont property, and count it towards its commitment to build 5,000 megawatts of solar power, as codified in the recently passed Grid Modernization and Security Act?
One more question: What does this mean for natural gas demand in Virginia?Data centers consume electricity 24/7, but solar power generates power only 12 hours per day (with output varying by the time of year). Where will the electricity come from in off hours? Do deals like this bolster or obviate the need to build any new gas-fired plants?