TotalEnergies to Supply 1.5 TWh to STMicroelectronics

By Global Infrastructure Sherpa · Jan 28, 2025

Ppa Renewable Energy signed France Jan 28, 2025

75 MW

Capacity

TotalEnergies will supply 1.5 TWh of renewable energy to STMicroelectronics in France over 15 years. The energy will come from two recent wind and solar farms operated by TotalEnergies. This is the first physical Power Purchase Agreement (PPA) in France for STMicroelectronics, aiming to achieve 100% renewable sourcing by 2027.

Deal Analysis

TotalEnergies' agreement to supply 1.5 TWh of renewable energy to STMicroelectronics over 15 years marks a significant step in STMicroelectronics' commitment to achieving 100% renewable energy sourcing by 2027. This Power Purchase Agreement (PPA), the first of its kind for STMicroelectronics in France, will be fulfilled by two of TotalEnergies' recently developed wind and solar farms. The deal underscores the growing trend of corporations directly procuring renewable energy to meet sustainability goals and reduce their carbon footprint. The agreement highlights the increasing collaboration between energy companies and large industrial consumers in securing long-term renewable energy supplies. TotalEnergies, a major global energy player, is leveraging its renewable energy portfolio to support the decarbonization efforts of STMicroelectronics, a leading semiconductor manufacturer. This 75 MW capacity deal demonstrates the viability of PPAs as a mechanism for financing and operating renewable energy projects while providing price certainty for both the energy producer and the consumer. The deal's location in France also reflects the country's commitment to fostering renewable energy adoption.

First physical PPA in France for STMicroelectronics.
Supports STMicroelectronics' goal of 100% renewable sourcing by 2027.
Involves two major players: TotalEnergies (developer) and STMicroelectronics (offtaker).
15-year agreement provides long-term price certainty and supports renewable energy project financing.

Market Context: The renewable energy sector in Europe, particularly in France, is experiencing significant growth driven by government policies, corporate sustainability initiatives, and declining costs of renewable energy technologies. PPAs are becoming increasingly common as a mechanism for corporations to secure long-term renewable energy supplies and contribute to decarbonization efforts.