Networking firm Cisco has signed a deal to procure 100MW solar energy of solar energy in Texas.
Brookfield-owned energy developer X-Elio and the Net Zero Consortium for Buyers (NZCB) this week announced the signing of six virtual Power Purchase Agreements (vPPAs) for a combined total capacity of 172MW in the US.
The consortium includes major companies such as Cisco Systems, Biogen, IDEXX Laboratories, and Waters Corporation.
“As Cisco looks to reach its net zero target across its value chain, aggregated renewable energy procurements with other corporate buyers figure significantly in our renewable energy transition approach,” said Andy Smith, director of energy, employee health and safety, and technology at Cisco. “Joining other buyers enables us to spread our procurement across multiple transactions, diversifying our renewable energy portfolio in a way that decreases risk and increases cost-effectiveness. We are delighted to work with NZCB buyers to cause new clean energy capacity.”
The 12-year arrangements cover the output of the Star Dairy and Rosebud projects in Texas. The two sites are expected to supply an estimated 367,000 MWh annually, with operations set to begin in 2027.
Cisco has signed to procure 50MW of the Star Dairy solar project and 50MW of the Rosebud solar project.
Nicholas Pentreath, X-Elio's CEO deputy, said: "Today, once again, we announce another key milestone of partnership for the company. We are honored to be the selected and trusted partner to bring supply and price certainty to energy-intensive sectors with ambitious ESG and net zero targets, such as the technological, health, and pharmaceutical industries."
Sustainability Roundtable, Inc.'s NZCB is a confidential renewable energy buyers' group that “creates transactions favorable” for corporate buyers.
X-Elio said Cisco's two agreements support its goal of achieving net-zero emissions across its value chain by 2040. Cisco has now made three agreements through NZCB. It has signed deals totaling more than 1GW and is targeting 10GW by 2030.
“NZCB high-credit buyers are the stars,” said James F. Boyle, CEO and founder of SR Inc. “They repeatedly demonstrate that economic and intellectual collaboration between the smartest companies can cause new clean energy at scale.”
Last year, Cisco said it consumed more than 1.3 million MWh of renewable electricity during 2023, accounting for 91 percent of its annual electricity consumption across its global operations.
February 2024 saw Cisco sign a 15-year vPPA to offtake from a 37MW solar farm in Spain developed by IGNIS. The farm is set to match all of Cisco’s European energy needs.
