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Why Microsoft is investing in Houston as an energy transition leader

The Energy Transition Center for Excellence is housed out of Microsoft Technology Center in Houston. Photo courtesy of Microsoft

Houston is known as the energy capital of the world to many, and major players — from the mayor to corporations — are determined to translate that leadership to the energy transition.

With that in mind, Microsoft has launched its own hub to celebrate the movement — the Energy Transition Center for Excellence, which was announced this spring. The new center, based in the Microsoft Technology Center in Houston, exists to support companies as they evolve their business to be more sustainable and climate-conscious.

“We are proud to have a vast and rich ecosystem of partners that actively co-develop sustainability solutions,” Darryl Willis, corporate vice president of Microsoft’s Energy and Resources Industry tells EnergyCapital via email. “Our featured partners demonstrate what is possible across the energy transition value chain from decarbonization to new clean energy solutions.”

Microsoft is behind platforms such as Microsoft Cloud, AI, machine learning, the Internet of Things, and mixed reality, all of which can help to “power transformation,” as Willis puts it.

According to research provider BloombergNEF, it will take an investment of $5.8 trillion into energy transition to achieve a global net-zero by 2050. Not every company is committed to spending the necessary funds to make the sometimes-massive changes to their operations.

But Willis lists nine partners that have actively been collaborating with Microsoft to achieve net-zero goals. Each boasts an exhibit at the Energy Transition Center for Excellence. There, customers have the opportunity to see precisely how Microsoft and those companies are working to make their operations healthier for the planet, from decarbonization to new, clean energy solutions.

For example, Bentley is working with Microsoft to provide digital solutions in offshore wind power. EY is furthering decarbonization with its Hydrogen Pathways, a molecular accounting platform that creates a “holistic view for hydrogen production.” Terra Praxis is behind REPOWER, a standardized system that is helping to repurpose coal plants to create clean energy.

Customers can make an appointment to experience a new energy future through immersive, interactive exhibits built by Microsoft’s partners.

“Many of the energy customers we support on their decarbonization and sustainability efforts are either headquartered or have significant presence in Houston, making it an ideal location for deeper collaboration as we tackle this significant challenge facing the world,” says Willis.

With the city becoming a hub for the incubation of climate tech, Houston is inching ever closer to becoming the Energy Transition Capital of the World.

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A View From HETI

SunPower is expanding its solar and VPP business in Texas. Photo via Unsplash

Utah-based solar technology and battery storage company SunPower has announced its expansion into Texas by acquiring “prime project assets” from Houston installer Green Light Solar.

As part of the deal, Green Light Solar CEO James Garrett will lead SunPower’s U.S. installation group. Garrett is based in the Houston area, according to LinkedIn.

Green Light Solar focuses on residential and commercial solar installations, battery backups and whole-home generators throughout Texas, Louisiana, Oklahoma and Colorado. As of press time, SunPower had not disclosed which specific projects or assets were included in the acquisition.

In addition to the Green Light acquisition, SunPower also announced its second strategic partnership with Fort Worth-based SOLRITE Energy, which provides solar and battery project financing and virtual power plant capabilities.

Through the partnership, SunPower plans to expand its residential solar and battery storage business and grow its virtual power plant (VPP) network in Texas.

A virtual power plant is a network of connected energy sources that can supply electricity to the grid when demand is high. The network draws on energy stored in individual residential and commercial battery systems. VPPs can also help participating homeowners generate additional revenue by selling their stored power.

“SOLRITE not only sources projects to us but also provides project funding for innovative systems with large batteries connected to a VPP, enabling power sales into the open market,” T. J. Rodgers, SunPower CEO, said in a news release. “That VPP capability provides an extra source of income that SOLRITE shares with homeowners and EPCs, making SOLRITE an attractive partner.”

SunPower will bring its sales, installation and lifetime warranty support to the partnership, while SOLRITE will provide its virtual power plant platform and solar financing capabilities, according to the release.

"Building our VPP business is a key part of SunPower’s growth strategy going forward,” Kapil Rai, EVP of Direct at SunPower, added in the release. “Our partnership with SOLRITE gives us a path to bring together customer acquisition, solar, storage deployment, and financing to develop this business in Texas and beyond.”

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