Ashtrom Renewable Energy has announced the successful commissioning of its Tierra Bonita solar park in Pecos County, West Texas, marking a significant milestone in the company’s U.S. expansion. The project, which achieved commercial operation ahead of schedule, is the first utility-scale solar facility brought online in the United States by the Ashtrom Group subsidiary and is now feeding 306 MWac (400 MWdc) of clean energy into the grid.
Spanning approximately 2,200 acres, the Tierra Bonita facility is a major contributor to Texas’s renewable energy capacity. The park is projected to generate enough electricity to power around 75,000 households annually. Environmentally, its impact is substantial, with an estimated reduction in CO2 emissions of between 400,000 and 500,000 tons each year. The total investment for the project reached $435 million, supported by a $270 million financing package from a consortium of banks including BHI, Bayerische Landesbank, ING, Rabobank, and Société Générale.
A significant portion of the park’s output is already secured through a long-term agreement. Ashtrom has a 20-year Power Purchase Agreement (PPA) with CPS Energy, the largest municipally-owned utility in the U.S., to supply 180 MWac of power. This portion alone is capable of powering approximately 45,000 homes on peak days. The remaining electricity generated by the solar power project will be sold on the open market. Further solidifying its financial strategy, Ashtrom executed a groundbreaking agreement to transfer and sell the project’s production tax credits under the Inflation Reduction Act (IRA), which will provide $300 million over a ten-year period from a U.S. institutional entity.
“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 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.”
The Tierra Bonita park is one of six U.S. projects for the Israel and Austin-based independent power producer, contributing to a domestic portfolio of approximately 1,800 MW. With a global development pipeline nearing 2.5 GWdc, Ashtrom is poised for continued growth in key renewable energy markets.
Sources
- Tierra Bonita – Solar Field – Ashtrom Renewable Energy
- Ashtrom Group enters U.S. solar market with 300 MW utility-scale …
- West Texas solar facility now generating power for CPS Energy
- Ashtrom Renewable Energy switches on 306 MW Tierra Bonita solar …
- Ashtrom Renewable Energy Commences Operation of Tierra Bonita …
- Tierra Bonita solar farm – Global Energy Monitor
- Texas Solar Project Under Construction Moves Forward
- Tierra Bonita Solar Project | Mortenson
- Ashtrom raises US$270 million for 400MWdc Tierra Bonita project