Telefónica, Microsoft power on with clean energy deals in Latin America

Spanish telecom group Telefónica and US tech giant Microsoft are expanding partnerships and contracts for the supply of clean energy to their Latin American operations amid a global decarbonization push.

In Peru, Telefónica Movistar renewed a contract with Statkraft for five years for the supply of clean energy, mostly hydro.

The collaboration ensures that 100% of the power used comes from renewable sources, validated by the international I-REC and AENOR certifications, according to a statement from the carrier.

Norway’s Statkraft has been a provider for Telefónica Movistar since 2018. Worldwide, the Telefónica group seeks to become net zero in emissions by 2040. 

Telefónica reports 96 self-generation stations for clean energy Peru-wide. During 2023, the company said it avoided more than 54,000t of CO2eq (carbon dioxide equivalent) in Peru, which it said contributed to a 95% reduction in its carbon footprint compared to the base year 2015. 

The deployment of fiber also helps reduce the carbon footprint, argues the telco.

In Argentina, Chile, Colombia and Peru, Telefónica Hispanoamérica said it removed more than 11,000t of copper cable in 2022 and over 19,000t in 2023 as it rolls out fiber. The estimate for 2024 is more than 25,000t in the four countries.

Telefónica claims the technology consumes up to seven times less power than copper. Also, the removal of copper networks and their replacement with fiber will represent savings of 14.6GWh this year. 

This load, it says, is equivalent to the average annual consumption of approximately 6,900 homes.

In Argentina, Telefónica plans to buy 518% more I-REC renewable energy certificates this year compared to 2023. In Brazil, initiatives also include direct investments in renewable generators.

The telco’s Brazilian subsidiary Vivo went live this year with a 2023-signed partnership with Elera Renováveis, becoming a self-producer in four solar parks totaling 237MW.

The complex destined for Vivo is in Janaúba, Minas Gerais state, and should supply more than 200 medium-voltage consumption units, such as antennas, of the telco.

“Entering self-production reduces dependence on purchasing energy in the free market and makes the company less susceptible to variations in the sector,” Telefônica Brasil said.

MICROSOFT

“I don't want to own energy companies. I want to buy energy, buy green energy. That’s what we look for in our contracts,” said Microsoft Brasil CEO Tania Cosentino when asked about the clean strategy.

The executive was talking on Thursday at the Microsoft AI Tour event in São Paulo.

In 2023, Microsoft signed a 15-year contract with AES Brasil, which now belongs to Auren Energia, for the supply of wind energy from the Cajuína park in Rio Grande do Norte state.

The agreement, as announced at the time, is for 77MWa for Microsoft. Delivery started in July this year.

Currently, Cajuína has 314MW in operation, whereas the entire complex can reach total installed capacity of 1.6GW.

Replying to BNamericas, Cosentino said that what Microsoft takes from Cajuína is currently enough to serve demand from all the company's datacenters in Brazil. 

But because Microsoft expands sites and builds new ones, adding more power-hungry AI capabilities, new power loads will be necessary, she said.

“Cajuína supplies what we have today. But our business grows exponentially, so we’re analyzing and planning ahead. Like a datacenter, building a wind farm takes years,” Cosentino said.

The executive said Microsoft has a handful of projects underway in Brazil. 

“We are doing earthworks on several sites in the interior [of São Paulo] for greenfield [datacenter] projects.”

It was the first contract in Brazil between the two companies. Microsoft has a global agreement with the AES group.

In Chile, where Microsoft also has datacenters, a contract with the local AES subsidiary was signed in 2022. That contract was aimed at the supply of power to the US$317mn Quilicura facility in Santiago.

Unlike Brazil, the supply in Chile comes from both solar and wind – a solar project in Antofagasta region and a wind project in Biobío region.

AES Chile also supplies power to Google.