Ashtrom Renewable Energy has begun operations on the 306 MWac Tierra Bonita solar project in Pecos County, Texas.

Situated in West Texas, the Tierra Bonita project is spans approximately 2,200 acres and was established at a total cost of $435 million, of which the Ashtrom invested $165 million in equity. The project is expected to reduce carbon emissions by 500,000 tons per year.

A subsidiary of Ashtrom Group, which is headquartered in Tel Aviv, Israel, Ashtrom Renewable Energy is a global independent power producer and renewable energy developer. The Tierra Bonita project marks a significant milestone for Ashtrom Group’s renewable energy operations. The project obtained the required approvals for commercial operation, earlier than the contracted date.

“We are thrilled to announce the early commencement of commercial operations for the Tierra Bonita solar project, a key milestone for Ashtrom Renewable Energy,” said Yitsik Mermelstein, CEO of Ashtrom Renewable Energy. “This achievement not only underscores our ability to deliver utility-scale renewable energy projects, but also reflects our commitment to sustainable growth within just three years of establishing the company. Through innovative agreements like the sale and transfer of production tax credits under the Inflation Reduction Act, we are further maximizing the project’s financial and environmental impact.”

Ashtrom Renewable Energy has secured the sale of 60% of the generated electricity (180 MWac) by signing a 20-year power purchase agreement (PPA) with CPS Energy, which was established in 1860 and is among the largest municipally owned electric and gas utility in the United States.

The remaining electricity generated by the project will be sold by Ashtrom Renewable Energy on the free market. In addition, the developer signed a first-of-its-kind agreement under IRA legislation for the transfer and sale of project tax credits to a Moody’s Aa3 rated American institutional entity in consideration of $300 million over a period of 10 years.

Ashtrom Renewable Energy operates in several geographical markets, focusing on the United States and Israel. The Tierra Bonita project is one of six projects held by the company in the United States. The projects total approximately 1,800 MW. In addition to its U.S. holdings, Ashtrom Renewable Energy holds 11% of a 257 MW wind energy project in Poland.

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