Dominion, Microsoft partner on 20 MW solar farm in Virginia

Dive Brief:

Dominion, working on a commitment to build 400 MW of solar energy in Virginia by 2020, has announced plans to develop a 20 MW project in a public-private partnership involving the state and Microsoft, the Associated Press reports.
Dominion Virginia Power will construct the project on land it already owns in Fauquier County, with the project slated for service in late 2017, subject to regulatory approval.
The state of Virginia has agreed to sign a purchase agreement with Dominion for 100% of the electricity generated from the project, while Microsoft committed to purchase and retire the green credits from the project to satisfy its sustainability goals.

Dive Insight:

Virginia Gov. Terry McAuliffe announced the solar partnership in Richmond yesterday, touting the agreement as a "solid step" towards a cleaner energy future in the state, which AP noted is small in comparison to other states. According to the Solar Energy Industries Association, Virginia has 21 MW of solar installed.

“This partnership will help reduce Virginia’s carbon emissions and diversify our energy portfolio, while growing the solar and data center industries in Virginia," McAuliffe said. "This is a prime example of the type of creative thinking and public-private cooperation we need to build a new Virginia economy.”

Dominion will construct the facility adjacent to its Remington generating station, which the utility attempted to do last year, but was denied by regulators. The Virginia State Corporation Commission told the utility to open up bids to third party providers.

The utility has committed to developing 400 MW of solar energy in Virginia by 2020, while Microsoft has made its own commitments. The company previously announced agreements to purchase 175 MW of wind energy in Illinois that fully powers its Chicago data center, and 110 MW of wind energy in Texas that powers its San Antonio data center.

"By investing in these projects and partnering with states and utilities, Microsoft can provide long-term certainty needed to expand the amount of renewable energy available on the grid,” said Microsoft Chief Environmental Strategist Rob Bernard. “We are pleased to play a role in this project, as it will bring new, additional clean energy onto the grid in Virginia.”

Microsoft owns a large data center in Southern Virginia.

Dominion CEO Thomas Farrell II called the deal a "forward-looking partnership."

The project will "assist us in our continued commitment to increase the renewable energy available to serve our customers in Virginia,” Farrell said. “Microsoft and the Commonwealth play key roles in making this large-scale solar project possible, and we look forward to working with them.”