Ashtrom Renewable Energy, a global independent power producer and renewable energy developer and a subsidiary of Ashtrom Group announced that the 306-MW/400-MW DC Tierra Bonita solar park in Texas is now officially operational. This marks a major milestone for Ashtrom Group's renewable energy ventures.
Tierra Bonita Solar Park to Power 75,000 Homes
The Tierra Bonita solar park is a solar energy initiative located in Pecos County, West Texas spanning approximately 2,200 acres with a generation capacity of 306 MWac. It will supply enough electricity to power around 75,000 households annually and is projected to cut CO2 emissions by 500,000 tons each year. The project was developed at a total cost of $435 million with the company contributing $165 million in equity.
Tierra Bonita solar park (Image: Collected)
“We are thrilled to announce the early commencement of commercial operations for the Tierra Bonita solar project, a key milestone for 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.” said Yitsik Mermelstein, CEO of Ashtrom Renewable Energy.
Ashtrom Renewable Energy Secures PPA and Tax Credit Agreement
Ashtrom Renewable Energy has secured the sale of 60% of its generated electricity (180 MW ac) through a 20-year Power Purchase Agreement (PPA) with CPS Energy, the largest municipally-owned electric and gas utility in the U.S., founded in 1860. The remaining electricity from the solar project will be sold by Ashtrom Renewable Energy on the open market.
Additionally, the company signed a groundbreaking agreement under the Inflation Reduction Act (IRA) for the transfer and sale of project tax credits to a U.S. institutional entity, rated Aa3 by Moody’s in exchange for $300 million over 10 years.
Ashtrom Renewable Energy operates in various markets, primarily in the U.S. and Israel. The Tierra Bonita solar park is one of six projects the company has in the U.S., totalling around 1,800 MW. Besides its U.S. assets, Ashtrom Renewable Energy also owns an 11% stake in a 257 MW wind energy project in Poland.
Ashtrom Renewable Energy: Driving Clean Energy Development
Ashtrom Renewable Energy is committed to delivering clean energy on a large scale. With headquarters in Israel and Austin, the company develops top-tier renewable energy projects in the United States and internationally. As an independent power producer (IPP), Ashtrom employs a hands-on, risk-informed strategy that prioritizes strategic and cost-effective execution. The team consists of energy experts with decades of experience in solar and wind siting, development, construction, financing and operations.
Ashtrom Renewable Energy benefits from the financial stability and commitment to excellence of its parent company—Ashtrom Group—a prominent infrastructure, construction and real estate development firm with a successful 60-year history. With a development pipeline of approximately 1.8 GWdc in the U.S. and around 2.5 GWdc globally, Ashtrom Renewable Energy is well-positioned to expand its development and investment efforts in the U.S. market for the long term.