Ashtrom Renewable Energy, a subsidiary of Ashtrom Group and a global independent power producer, has announced that its 306-MW/400-MW DC Tierra Bonita solar park in Texas is now operational. The project marks a major milestone for the Ashtrom Group’s renewable energy ventures.
Tierra Bonita Solar Park to Power 75,000 Homes
The Tierra Bonita solar park, located in Pecos County, West Texas, spans approximately 2,200 acres and has a generation capacity of 306 MWac. It will supply enough clean electricity to power around 75,000 households annually and is projected to reduce CO2 emissions by 500,000 tons each year.
Developed at a total cost of $435 million, the project includes a significant $165 million equity contribution from the company, underscoring its financial commitment to renewable energy.
“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 underscores our ability to deliver utility-scale renewable energy projects and reflects our commitment to sustainable growth—all within just three years of the company’s founding. Through innovative agreements, like the sale and transfer of production tax credits under the Inflation Reduction Act, we are 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 the park’s generated electricity (180 MWac) 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 on the open market.
The company also signed a groundbreaking agreement under the Inflation Reduction Act (IRA) to transfer and sell project tax credits. In exchange for these credits, a U.S. institutional entity, rated Aa3 by Moody’s, will provide $300 million over 10 years.
Ashtrom Renewable Energy: Driving Clean Energy Development
Ashtrom Renewable Energy is committed to delivering clean energy on a large scale. Headquartered 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 uses a hands-on, risk-informed strategy focused on strategic, cost-effective execution. Its team is made up of energy experts with decades of experience in solar and wind siting, development, construction, financing, and operations.
Ashtrom Renewable Energy is backed by the financial stability and commitment to excellence of its parent company, Ashtrom Group—a prominent infrastructure, construction, and real estate firm with a successful 60-year history. The company operates in key markets, primarily in the U.S. and Israel.
The Tierra Bonita solar park is one of six Ashtrom projects in the U.S., which collectively total around 1,800 MW. In addition to its U.S. assets, the company holds an 11% stake in a 257 MW wind energy project in Poland. With a robust development pipeline of approximately 1.8 GWdc in the U.S. and around 2.5 GWdc globally, Ashtrom Renewable Energy is well-positioned for long-term expansion in the U.S. market.