Ashtrom Group enters U.S. solar market with 300 MW utility-scale project

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Ashtrom Renewable Energy, a subsidiary of the Ashtrom Group, announced it has activated the Tierra Bonita solar project in Texas, marking the first commercially operational utility-scale solar project for the developer.

Tierra Bonita was established at a total cost of $435 million, of which the company invested $165 million in equity.

The independent power producer will sell 60% of electricity generated by the project to utility CPS Energy via a 20 year power purchase agreement. The remaining electricity generated by the project will be sold by Ashtrom Renewable Energy on the wholesale market.

“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,” said Yitsik Mermelstein, chief executive officer, Ashtrom Renewable Energy.

The project secured the transfer and sale of project tax credits to a Moody’s Aa3 rated American institutional entity in consideration of $300M over a period of 10 years. The Inflation Reduction Act of 2022 enables renewable energy project developers to directly sell or transfer tax credits to another entity with a tax appetite in exchange for cash.

Located in Pecos County, the Tierra Bonita Solar project is a 2,200 acre, 306 MW solar project. It is expected to generate enough electricity to match the equivalent consumption of about 75,000 households.

Ashtrom Renewable Energy operates in several geographical markets, focusing on the U.S. and Israel. The Tierra Bonita project is one of six projects held by the company in the U.S. The projects total approximately 1,800 MW. The company has headquarters in Israel and Austin, Texas.

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