Amazon agrees 450-MW solar purchase in California with AES

Solar park. Image by: Amazon Web Services (aws.amazon.com).

Amazon.com Inc (NASDAQ:AMZN) has committed to buying electricity from 450 MW of solar parks to power its data centres in California under a deal with power distributor AES Corp (NYSE:AES).

The US e-commerce giant has sealed two power purchase agreements (PPAs) that will see it get renewable energy in the California Independent System Operator (CAISO) market. The power will be sourced from solar photovoltaic (PV) plants and 225 MW of battery storage projects with a four-hour duration.

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The off-take deals were announced by AES on Thursday.

Amazon’s renewable energy procurement places the online retailer and web services provider on a path to power 100% of its operations with renewables by 2025, five years earlier than its original 2030 goal. The company also has a target of reaching net-zero carbon by 2040.

The latest contracted capacity is part of AES’ portfolio of PPAs, which the power generation group expanded with 5 GW of new deals last year.