Avangrid Signs Fourth Microsoft PPA for 140 MW Bluebird Solar in Washington as Combined US Portfolio Exceeds 500 MW

Avangrid has signed a Power Purchase Agreement with Microsoft for the 140 megawatt-dc Bluebird Solar project in Klickitat County, Washington, the fourth US energy contract between the two companies and one that pushes their combined contracted capacity beyond 500 megawatts. The Bluebird project, with a rated alternating current capacity of 100 megawatts, is capable of powering over 20,000 US homes and represents approximately $300 million in community investment, with commercial operation expected in 2028. Construction is expected to create approximately 300 jobs, predominantly filled by local union labour, with long-term operations and maintenance supporting several permanent positions and an estimated $11 million in local property tax contributions over the project's lifetime.

 

A Growing Strategic Partnership with Microsoft

 

The Bluebird Solar agreement deepens what is becoming one of the more significant bilateral clean energy procurement relationships between a US renewable developer and a hyperscale technology company. Avangrid and Microsoft previously executed PPAs for Powell Creek Solar in Ohio and Camino Solar in California, both of which began commercial operation in 2025, and Juniper Canyon Wind in Washington, which is expected to reach commercial operation this year. The progression from individual project transactions to a portfolio relationship exceeding 500 megawatts across four projects in multiple states reflects the scale of Microsoft's clean energy procurement ambition and Avangrid's ability to provide a reliable pipeline of development-ready projects.

Jose Antonio Miranda, Chief Executive Officer of Avangrid, said Bluebird Solar builds on the company's longstanding commitment to energy development in Washington, bringing meaningful economic benefits to Klickitat County. He said the strong relationship with Microsoft helps the technology company meet its energy needs while investing in the communities where Avangrid operates, and added that this adds to Avangrid's track record of developing projects to meet growing energy demands from leading technology companies. The framing emphasises community economic benefit alongside the commercial clean energy supply relationship, reflecting the increasing expectation that hyperscale clean energy projects demonstrate local value creation alongside environmental credentials.

 

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Klickitat County and Washington State Context

 

The Bluebird project is located near four other Avangrid energy projects already owned and operated in Klickitat County, providing the company with operational familiarity with local grid infrastructure, permitting processes and community relationships that reduces development risk relative to a greenfield entry into a new market. The project's name was inspired by the thousands of bluebirds native to the area, with the nearby town of Bickleton known as the Bluebird Capital of the World, reflecting a deliberate effort to connect the project identity to local community and natural heritage. Washington State's strong wind and solar resources, combined with its clean energy policy framework and Microsoft's significant data centre presence in the Pacific Northwest, make it a natural location for continued renewable energy development.

The $300 million investment in Klickitat County, a primarily rural community, is economically significant at the local scale, with construction employment, operational jobs and property tax revenues providing direct financial benefits to a county with limited alternative sources of large-scale private investment. Avangrid's commitment to filling construction positions predominantly with local union labour reflects both a community engagement commitment and alignment with the domestic content and labour requirements that are increasingly embedded in federal clean energy incentive frameworks.

 

Avangrid's Clean Energy Portfolio and Iberdrola Group Context

 

Avangrid operates over 11 gigawatts of installed capacity across a 25-state portfolio including nearly 100 energy projects, positioning it as one of the largest renewable energy developers and operators in the United States. As a member of the Iberdrola Group, one of the world's largest utilities and renewable energy companies, Avangrid benefits from access to capital, technology and project development capabilities that support its ability to execute large-scale clean energy projects at the pace hyperscale technology company customers require. The Microsoft relationship across four contracted projects in multiple states demonstrates Avangrid's capacity to serve as a programmatic clean energy supplier rather than a transactional project developer.

The accumulation of contracted capacity with a single counterparty above 500 megawatts also provides Avangrid with revenue visibility that supports disciplined capital allocation and financing across its development pipeline. Long-term contracted clean energy projects with investment-grade counterparties such as Microsoft provide the stable cash flow characteristics that attract project finance capital at competitive terms, improving the economics of each individual project and the overall portfolio. This programmatic contracting model is becoming increasingly important as hyperscale clean energy demand scales and developers compete for the long-term supply relationships that provide the most durable commercial foundation.

 

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Outlook for Hyperscale Clean Energy Procurement in the Pacific Northwest

 

The Avangrid and Microsoft Bluebird agreement is one of a growing number of large-scale solar PPA transactions in the Pacific Northwest as technology companies with major data centre operations in the region seek to match their electricity consumption with clean generation sources in the same or adjacent grid balancing areas. Washington State's combination of strong solar and wind resources, existing grid infrastructure and favourable policy environment for renewable development makes it a competitive market for continued clean energy investment. The proximity of the Bluebird project to Avangrid's existing Klickitat County portfolio provides a cluster development advantage that can support efficient interconnection, operations and community engagement across multiple projects simultaneously.

Whether Avangrid and Microsoft will continue to extend their contracted portfolio beyond 500 megawatts will depend on Microsoft's evolving clean energy demand profile, Avangrid's development pipeline quality and the availability of grid interconnection capacity in target markets. Sustained execution on the Bluebird project through to its 2028 commercial operation target would maintain the momentum of a partnership that has already delivered two operational projects and reinforced both companies' clean energy credentials in key US markets. The broader trajectory of hyperscale clean energy procurement in the United States is likely to continue supporting developers with proven track records of delivering contracted projects on schedule.

 

 

Source: Avangrid